Bitcoin uses ‘blockchain’ technology to achieve an immutable ledger. But what does that mean, exactly? This video dives into the mechanics of blockchain, how bitcoin achieves consensus for every transaction, and what proof-of-work looks like in practice.
Whereas the first video showed how a blockchain works in practice, this video demonstrates the innovativeness of bitcoin through gradual introductions of key topics: accounting ledgers, digital signatures, decentralization, hash functions, proof-of-work, and finally, blockchain.
As if two videos weren’t enough, this is an article from Ilya Grigorik—Principal Engineer at Shopify—discussing what pieces are needed to create a ‘minimum viable blockchain’. By the time you get through these three discoveries, you’ll have a solid grasp on what happens behind the scenes when someone transacts in bitcoin. If you’re still feeling shaky, check out the Haseeb Qureshi article in the intro above: he provides ‘extra credit’ resources for anyone looking to gain a better understanding.