Still Don – t Get Bitcoin? Here – s an Explanation For Five-Year-Olds

Без кейворда

If you still can’t figure out what the heck a bitcoin is, this elementary explanation for a five-year-old may help you .

We’re sitting on a park bench. It’s a fine day. I have one apple with me, I give it to you.

You now have one apple and I have zero. That was elementary, right?

Let’s look closely at what happened:

My apple was physically put into your palm. You know it happened. I was there, you were there – you touched it.

We didn’t need a third person there to help us make the transfer. We didn’t need to pull in Uncle Tommy (who’s a famous judge) to sit with us on the bench and confirm that the apple went from me to you.

The apple’s yours! I can’t give you another apple because I don’t have any left. I can’t control it anymore. The apple left my possession totally. You have utter control over that apple now. You can give it to your friend if you want, and then that friend can give it to his friend, and so on.

So that’s what an in-person exchange looks like. I guess it’s truly the same, whether I’m providing you a banana, a book, a quarter, or a dollar bill

But I’m getting ahead of myself.

Back to apples!

Now, let’s say I have one digital apple. Here, I’ll give you my digital apple. Ah! Now it gets interesting.

How do you know that digital apple which used to be mine, is now yours, and only yours? Think about it for a 2nd. It’s more complicated, right? How do you know that I didn’t send that apple to Uncle Tommy as an email attachment very first? Or your friend Joe? Or my friend Lisa too?

Maybe I made a duo of copies of that digital apple on my computer. Maybe I put it up on the internet and one million people downloaded it.

As you see, this digital exchange is a bit of a problem. Sending digital apples doesn’t look like sending physical apples.

Some brainy computer scientists actually have a name for this problem: it’s called the double-spending problem. But don’t worry about it. All you need to know is that it’s confused them for fairly some time and they’ve never solved it. Until now.

But let’s attempt to think of a solution on our own.

Ledgers

Maybe these digital apples need to be tracked in a ledger. It’s basically a book where you track all transactions – an accounting book.

This ledger, since it’s digital, needs to live in its own world and have someone in charge of it.

Just like World of Warcraft, say. Blizzard, the guys who created the online game, have a “digital ledger” of all the infrequent flaming fire swords that exist in their system. So, cool, someone like them could keep track of our digital apples. Awesome – we solved it!

Problems

There’s a bit of a problem tho’:

1) What if some dude over at Blizzard created more? He could just add a duo of digital apples to his balance whenever he wants!

Two) It’s not the same as when we were on the bench that day. It was just you and me then. Going through Blizzard is like pulling in Uncle Tommy (a third-party) out of court (did I mention he’s a famous judge?) for all our park bench transactions. How can I just arm over my digital apple to you in the usual way?

Is there any way to closely replicate our park bench transaction digitally? Seems kinda raunchy …

The Solution

What if we gave this ledger to everybody? Instead of the ledger living on a Blizzard computer, it’ll live in everybody’s computers. All the transactions that have ever happened, from all time, in digital apples, will be recorded in it.

You can’t cheat it. I can’t send you digital apples I don’t have, because then it wouldn’t sync up with everybody else in the system. It’d be a raunchy system to hammer. Especially if it got indeed big.

Plus, it’s not managed by one person, so I know there’s no one that can just determine to give himself more digital apples. The rules of the system were already defined at the beginning.

And the code and rules are open source – kinda like the software used in your mom’s Android phone. Or kinda like Wikipedia. It’s there for clever people to maintain, secure, improve, and check.

You could participate in this network too – updating the ledger and making sure it all checks out. For the trouble, you could get like twenty five digital apples as a prize. In fact, that’s the only way to create more digital apples in the system.

I simplified fairly a bit … But that system I explained exists. It’s called the Bitcoin protocol. And those digital apples are the bitcoins within the system. Fancy! So, did you see what happened?

What does the public ledger enable?

1) It’s open source, reminisce? The total number of apples was defined in the public ledger at the beginning. I know the exact amount that exists. Within the system, I know they are limited (scarce).

Two) When I make an exchange I now know that digital apple certifiably left my possession and is now downright yours. I used to not be able to say that about digital things. It will be updated and verified by the public ledger.

Trio) Because it’s a public ledger, I didn’t need Uncle Tommy (third-party) to make sure I didn’t cheat, or make extra copies for myself, or send apples twice, or thrice…

Within the system, the exchange of a digital apple is now just like the exchange of a physical one. It’s now as good as watching a physical apple leave my mitt and drop into your pocket. Just like on the park bench, the exchange involved two people only. You and me , we didn’t need Uncle Tommy there to make it valid.

In other words, it behaves like a physical object.

But you know what’s cool? It’s still digital.

We can now deal with 1,000 apples, or one million apples, or even .0000001 apples. I can send it with a click of a button, and I can still drop it in your digital pocket if I was in Nicaragua and you were all the way in Fresh York.

I can even make other digital things rail on top of these digital apples! It’s digital after all. Maybe I can link some text on it – a digital note. Or maybe I can fasten more significant things; like say a contract, or a stock certificate, or an ID card …

So this is good! How should we treat or value these “digital apples”? They’re fairly useful aren’t they?

Well, a lot of people are arguing over it now. There’s debate inbetween this and that economic school, inbetween politicians, inbetween programmers. Don’t listen to all of them tho’. Some people are wise; some are misinformed. Some say the system is worth a lot; some say it’s actually worth zero. Some dude actually put a hard number on it: $1,300 per apple. Some say it’s digital gold; some say it’s a currency. Others say they’re just like tulips. Some people say it’ll switch the world; some say it’s just a fad.

I have my own opinion about it, but that’s a story for another time.

Hey kid, you now know more about Bitcoin than most.

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a rigorous set of editorial policies. Have cracking news or a story peak to send to our journalists? Contact us at [email protected] .

Still Don – t Get Bitcoin? Here – s an Explanation For Five-Year-Olds

Без кейворда

If you still can’t figure out what the heck a bitcoin is, this plain explanation for a five-year-old may help you .

We’re sitting on a park bench. It’s a excellent day. I have one apple with me, I give it to you.

You now have one apple and I have zero. That was plain, right?

Let’s look closely at what happened:

My apple was physically put into your arm. You know it happened. I was there, you were there – you touched it.

We didn’t need a third person there to help us make the transfer. We didn’t need to pull in Uncle Tommy (who’s a famous judge) to sit with us on the bench and confirm that the apple went from me to you.

The apple’s yours! I can’t give you another apple because I don’t have any left. I can’t control it anymore. The apple left my possession entirely. You have utter control over that apple now. You can give it to your friend if you want, and then that friend can give it to his friend, and so on.

So that’s what an in-person exchange looks like. I guess it’s truly the same, whether I’m providing you a banana, a book, a quarter, or a dollar bill

But I’m getting ahead of myself.

Back to apples!

Now, let’s say I have one digital apple. Here, I’ll give you my digital apple. Ah! Now it gets interesting.

How do you know that digital apple which used to be mine, is now yours, and only yours? Think about it for a 2nd. It’s more complicated, right? How do you know that I didn’t send that apple to Uncle Tommy as an email attachment very first? Or your friend Joe? Or my friend Lisa too?

Maybe I made a duo of copies of that digital apple on my computer. Maybe I put it up on the internet and one million people downloaded it.

As you see, this digital exchange is a bit of a problem. Sending digital apples doesn’t look like sending physical apples.

Some brainy computer scientists actually have a name for this problem: it’s called the double-spending problem. But don’t worry about it. All you need to know is that it’s confused them for fairly some time and they’ve never solved it. Until now.

But let’s attempt to think of a solution on our own.

Ledgers

Maybe these digital apples need to be tracked in a ledger. It’s basically a book where you track all transactions – an accounting book.

This ledger, since it’s digital, needs to live in its own world and have someone in charge of it.

Just like World of Warcraft, say. Blizzard, the guys who created the online game, have a “digital ledger” of all the uncommon flaming fire swords that exist in their system. So, cool, someone like them could keep track of our digital apples. Awesome – we solved it!

Problems

There’s a bit of a problem tho’:

1) What if some stud over at Blizzard created more? He could just add a duo of digital apples to his balance whenever he wants!

Two) It’s not the same as when we were on the bench that day. It was just you and me then. Going through Blizzard is like pulling in Uncle Tommy (a third-party) out of court (did I mention he’s a famous judge?) for all our park bench transactions. How can I just palm over my digital apple to you in the usual way?

Is there any way to closely replicate our park bench transaction digitally? Seems kinda harsh …

The Solution

What if we gave this ledger to everybody? Instead of the ledger living on a Blizzard computer, it’ll live in everybody’s computers. All the transactions that have ever happened, from all time, in digital apples, will be recorded in it.

You can’t cheat it. I can’t send you digital apples I don’t have, because then it wouldn’t sync up with everybody else in the system. It’d be a harsh system to hit. Especially if it got truly big.

Plus, it’s not managed by one person, so I know there’s no one that can just determine to give himself more digital apples. The rules of the system were already defined at the beginning.

And the code and rules are open source – kinda like the software used in your mom’s Android phone. Or kinda like Wikipedia. It’s there for clever people to maintain, secure, improve, and check.

You could participate in this network too – updating the ledger and making sure it all checks out. For the trouble, you could get like twenty five digital apples as a prize. In fact, that’s the only way to create more digital apples in the system.

I simplified fairly a bit … But that system I explained exists. It’s called the Bitcoin protocol. And those digital apples are the bitcoins within the system. Fancy! So, did you see what happened?

What does the public ledger enable?

1) It’s open source, reminisce? The total number of apples was defined in the public ledger at the beginning. I know the exact amount that exists. Within the system, I know they are limited (scarce).

Two) When I make an exchange I now know that digital apple certifiably left my possession and is now totally yours. I used to not be able to say that about digital things. It will be updated and verified by the public ledger.

Three) Because it’s a public ledger, I didn’t need Uncle Tommy (third-party) to make sure I didn’t cheat, or make extra copies for myself, or send apples twice, or thrice…

Within the system, the exchange of a digital apple is now just like the exchange of a physical one. It’s now as good as observing a physical apple leave my forearm and drop into your pocket. Just like on the park bench, the exchange involved two people only. You and me , we didn’t need Uncle Tommy there to make it valid.

In other words, it behaves like a physical object.

But you know what’s cool? It’s still digital.

We can now deal with 1,000 apples, or one million apples, or even .0000001 apples. I can send it with a click of a button, and I can still drop it in your digital pocket if I was in Nicaragua and you were all the way in Fresh York.

I can even make other digital things rail on top of these digital apples! It’s digital after all. Maybe I can link some text on it – a digital note. Or maybe I can fasten more significant things; like say a contract, or a stock certificate, or an ID card …

So this is superb! How should we treat or value these “digital apples”? They’re fairly useful aren’t they?

Well, a lot of people are arguing over it now. There’s debate inbetween this and that economic school, inbetween politicians, inbetween programmers. Don’t listen to all of them tho’. Some people are wise; some are misinformed. Some say the system is worth a lot; some say it’s actually worth zero. Some man actually put a hard number on it: $1,300 per apple. Some say it’s digital gold; some say it’s a currency. Others say they’re just like tulips. Some people say it’ll switch the world; some say it’s just a fad.

I have my own opinion about it, but that’s a story for another time.

Hey kid, you now know more about Bitcoin than most.

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a rigorous set of editorial policies. Have cracking news or a story peak to send to our journalists? Contact us at [email protected] .

Still Don – t Get Bitcoin? Here – s an Explanation For Five-Year-Olds

Без кейворда

If you still can’t figure out what the heck a bitcoin is, this ordinary explanation for a five-year-old may help you .

We’re sitting on a park bench. It’s a excellent day. I have one apple with me, I give it to you.

You now have one apple and I have zero. That was ordinary, right?

Let’s look closely at what happened:

My apple was physically put into your palm. You know it happened. I was there, you were there – you touched it.

We didn’t need a third person there to help us make the transfer. We didn’t need to pull in Uncle Tommy (who’s a famous judge) to sit with us on the bench and confirm that the apple went from me to you.

The apple’s yours! I can’t give you another apple because I don’t have any left. I can’t control it anymore. The apple left my possession totally. You have utter control over that apple now. You can give it to your friend if you want, and then that friend can give it to his friend, and so on.

So that’s what an in-person exchange looks like. I guess it’s truly the same, whether I’m providing you a banana, a book, a quarter, or a dollar bill

But I’m getting ahead of myself.

Back to apples!

Now, let’s say I have one digital apple. Here, I’ll give you my digital apple. Ah! Now it gets interesting.

How do you know that digital apple which used to be mine, is now yours, and only yours? Think about it for a 2nd. It’s more complicated, right? How do you know that I didn’t send that apple to Uncle Tommy as an email attachment very first? Or your friend Joe? Or my friend Lisa too?

Maybe I made a duo of copies of that digital apple on my computer. Maybe I put it up on the internet and one million people downloaded it.

As you see, this digital exchange is a bit of a problem. Sending digital apples doesn’t look like sending physical apples.

Some brainy computer scientists actually have a name for this problem: it’s called the double-spending problem. But don’t worry about it. All you need to know is that it’s confused them for fairly some time and they’ve never solved it. Until now.

But let’s attempt to think of a solution on our own.

Ledgers

Maybe these digital apples need to be tracked in a ledger. It’s basically a book where you track all transactions – an accounting book.

This ledger, since it’s digital, needs to live in its own world and have someone in charge of it.

Just like World of Warcraft, say. Blizzard, the guys who created the online game, have a “digital ledger” of all the infrequent flaming fire swords that exist in their system. So, cool, someone like them could keep track of our digital apples. Awesome – we solved it!

Problems

There’s a bit of a problem tho’:

1) What if some stud over at Blizzard created more? He could just add a duo of digital apples to his balance whenever he wants!

Two) It’s not the same as when we were on the bench that day. It was just you and me then. Going through Blizzard is like pulling in Uncle Tommy (a third-party) out of court (did I mention he’s a famous judge?) for all our park bench transactions. How can I just mitt over my digital apple to you in the usual way?

Is there any way to closely replicate our park bench transaction digitally? Seems kinda harsh …

The Solution

What if we gave this ledger to everybody? Instead of the ledger living on a Blizzard computer, it’ll live in everybody’s computers. All the transactions that have ever happened, from all time, in digital apples, will be recorded in it.

You can’t cheat it. I can’t send you digital apples I don’t have, because then it wouldn’t sync up with everybody else in the system. It’d be a harsh system to hammer. Especially if it got indeed big.

Plus, it’s not managed by one person, so I know there’s no one that can just determine to give himself more digital apples. The rules of the system were already defined at the beginning.

And the code and rules are open source – kinda like the software used in your mom’s Android phone. Or kinda like Wikipedia. It’s there for clever people to maintain, secure, improve, and check.

You could participate in this network too – updating the ledger and making sure it all checks out. For the trouble, you could get like twenty five digital apples as a prize. In fact, that’s the only way to create more digital apples in the system.

I simplified fairly a bit … But that system I explained exists. It’s called the Bitcoin protocol. And those digital apples are the bitcoins within the system. Fancy! So, did you see what happened?

What does the public ledger enable?

1) It’s open source, recall? The total number of apples was defined in the public ledger at the beginning. I know the exact amount that exists. Within the system, I know they are limited (scarce).

Two) When I make an exchange I now know that digital apple certifiably left my possession and is now fully yours. I used to not be able to say that about digital things. It will be updated and verified by the public ledger.

Three) Because it’s a public ledger, I didn’t need Uncle Tommy (third-party) to make sure I didn’t cheat, or make extra copies for myself, or send apples twice, or thrice…

Within the system, the exchange of a digital apple is now just like the exchange of a physical one. It’s now as good as eyeing a physical apple leave my forearm and drop into your pocket. Just like on the park bench, the exchange involved two people only. You and me , we didn’t need Uncle Tommy there to make it valid.

In other words, it behaves like a physical object.

But you know what’s cool? It’s still digital.

We can now deal with 1,000 apples, or one million apples, or even .0000001 apples. I can send it with a click of a button, and I can still drop it in your digital pocket if I was in Nicaragua and you were all the way in Fresh York.

I can even make other digital things rail on top of these digital apples! It’s digital after all. Maybe I can fasten some text on it – a digital note. Or maybe I can fasten more significant things; like say a contract, or a stock certificate, or an ID card …

So this is excellent! How should we treat or value these “digital apples”? They’re fairly useful aren’t they?

Well, a lot of people are arguing over it now. There’s debate inbetween this and that economic school, inbetween politicians, inbetween programmers. Don’t listen to all of them however. Some people are brainy; some are misinformed. Some say the system is worth a lot; some say it’s actually worth zero. Some fellow actually put a hard number on it: $1,300 per apple. Some say it’s digital gold; some say it’s a currency. Others say they’re just like tulips. Some people say it’ll switch the world; some say it’s just a fad.

I have my own opinion about it, but that’s a story for another time.

Hey kid, you now know more about Bitcoin than most.

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a stringent set of editorial policies. Have violating news or a story peak to send to our journalists? Contact us at [email protected] .

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