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what is bitcoin for kids

Bitcoin is a digital and global money system currency. It allows for the pseudo-anonymous not linked to a real name trading of money across the internet. The mathematical field of cryptography is the basis for its security. One of the differences between using bitcoin and using regular money online is that bitcoin can be used without having to link any sort of real-world identity to it.

Unless someone chooses to link their name to a bitcoin address, it is hard to tell who owns the address. Bitcoin does not keep track of users; it keeps track of addresses where the money is.

Each address has two important pieces of cryptographic information, or keys: a public one and a private one. The public key, which is what the "bitcoin address" is created from, is similar to an email address; anyone can look it up and send bitcoins to it. The private address, or private key, is similar to an email password; only with it can the owner send bitcoins from it. Because of this, it is very important that this private key is kept secret. To send bitcoins from an address, you prove to the network that you own the private key that corresponds to the address, without revealing the private key.

This is done with a branch of mathematics known as public key cryptography. A public key is what determines the ownership of bitcoins, and is very similar to an ID number. If someone wanted to send you bitcoins, all you would need to do is supply them your bitcoin address, which is a version of your public key that is easier to read and type.

Anyone using the system can see how much money "ABC" has and how much money "DEF" has, but they cannot tell anything about who owns the address. But Bob and Alice both have a second key which only they know. This is the private key, and it is the "other half" of a Bitcoin address. The private key is never shared, and allows the owner of the bitcoins to control them.

However, if the private key is not kept secret, then anyone who sees it can also control and take the bitcoins there. The person who took it, told others about it later, saying "I'll send it back once Matt gives me a new address, since someone else can sweep [empty] out the old one. Sites or users using the Bitcoin system are required to use a global database called the blockchain. The blockchain is a record of all transactions that have taken place in the Bitcoin network.

It also keeps track of new bitcoins as they are generated. With these two facts, the blockchain is able to keep track of who has how much money at all times. To generate a bitcoin, computers run specialized software. Because of how complicated the math needed to generate a bitcoin is, they must be calculated with very powerful processors. The process of generating the bitcoins is called mining. People who use their computers to mine Bitcoin, are paid with a small percentage of the bitcoins they generate.

A popular image associated with Bitcoin is a QR code. QR codes are the groups of black and white boxes seen at right. QR codes are similar to barcodes. Where barcodes have one dimension of information, QR codes have two horizontal and vertical. Barcodes are a row of lines, and QR codes are a grid of squares.

Bitcoin uses QR codes because they can store a lot of information in a small space, and a camera such as a smartphone can read them. The two QR codes on the Bitcoin note are the public and private addresses, and can be scanned with a number of online tools. Everyone in the Bitcoin network is considered a peer, and all addresses are created equal.

All transactions can take place solely from peer-to-peer, but a number of sites exist to make these transactions simpler. These sites are called exchanges. Exchanges provide tools for dealing in Bitcoin. Some allow the purchase of Bitcoin from external accounts, and others allow trading with other cryptography-based currencies like Bitcoin. Most exchanges also provide a basic "wallet" service.

Wallets provide a handy way to keep track of all of a user's public and private addresses. Because addresses are pseudo-anonymous, anyone can have as many addresses as they want.

This is useful for dealing with multiple people, but it can get complicated to manage multiple accounts. A wallet holds all of this information in a convenient place, just like a real wallet would.

Bitcoin adoption and use continues to grow a lot every year. Since , Bitcoin has gained the attention of the mainstream media. KidzSearch Safe Wikipedia for Kids. Jump to: navigation , search. Categories : establishments Commerce Currency Technology. Navigation menu Personal tools Log in. Namespaces Page Talk. Views Read View source View history. This page was last changed on 8 July , at By using this site, you agree to the Terms of Use Privacy Policy.

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what is bitcoin for kids

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Bitcoin is a form of digital money, and the first-ever cryptocurrency to be created. Bitcoin does not rely on intermediary regulatory services such as banks or government regulatory bodies. Bitcoin uses blockchain technologywhich in simple terms, is a type of public ledger. A ledger is an account of all transactions which are taking place and have ever taken place, between individual addresses. All transactions made through this system are irrevocably listed in a ledger which is stored by Bitcoin users. Everyone running a node a software bbitcoin, for example has a copy. Whenever somebody makes a transaction, a new entry is made, and once this is verified by other users, the public ledger is amended, and all copies are updated automatically.

What is Bitcoin?

Bitcoin is a digital and global money system currency. It allows people to send or receive money across the internet, even to someone they don't know or don't trust. Money can be exchanged without being linked to a real identity. The mathematical field of cryptography is the basis for Bitcoin's security. One of the differences between using bitcoin and using regular money online is that bitcoin can be used without having to link any sort of real-world identity to it. Unless someone chooses to link their name to a bitcoin address, it is hard to tell who owns the address. Bitcoin does not keep track of users; it keeps track of addresses where the money is.

what is bitcoin for kids

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The private key is never shared, and allows the owner of the bitcoins to control. The physical Bitcoins you see in photos are a novelty. It also keeps track of new what is bitcoin for kids as they are generated. You can give it to your friend if you want, http://trackmyurl.biz/what-do-you-do-with-bitcoin-cash-6292.html then that friend can give it to his friend, and so on. It allows for the pseudo-anonymous not linked to a real name trading of money across the internet. Or your friend Joe? Because of how complicated the math problems usually are, they must be calculated with very powerful processors. Up and down, up and. A backup of a wallet prevents bitcoinn the bitcoins. Categories : establishments Ror Currency Technology. Views Read View source View history. SinceBitcoin has gained the attention of the mainstream media; one way is the WannaCry ransomware created in Dhat It'll all be explained here! Teaching children about money is one of the most important lessons a parent can. The reason that users are in control of Bitcoin is that miners need to create blocks that people will find kida. The two QR codes on the Bitcoin note are the public and private addresses, and can be scanned with a number of online tools. A new block of transactions is created about every 10 minutes.

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