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Blockchain Basics Guides

Understand the technology powering cryptocurrencies. Learn how blockchain works, the difference between proof-of-work and proof-of-stake, what makes networks secure, and how smart contracts enable decentralized applications.

Taproot Upgrade: Everything You Should Know
Blockchain Basics2 min
Taproot Upgrade: Everything You Should Know

The Taproot upgrade enhances Bitcoin transactions by streamlining processes, improving efficiency, and increasing privacy.

2/21/2022
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Nova Reyes

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Blockchain Basics2 min
Bitcoin Mining: Frequently Asked Questions Answered!

Bitcoin mining involves solving mathematical puzzles to earn bitcoins. This guide answers common questions about the process and its implications.

2/17/2022
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Nova Reyes

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Blockchain Basics FAQ

Blockchain is a distributed digital ledger that records transactions across many computers. Each block contains transaction data, a timestamp, and a link to the previous block, creating an immutable chain. This makes it nearly impossible to alter historical records.
Proof-of-work (PoW) requires miners to solve complex puzzles using computing power (Bitcoin uses this). Proof-of-stake (PoS) selects validators based on how much crypto they 'stake' as collateral (Ethereum uses this). PoS is more energy-efficient but has different security tradeoffs.
Blockchain security comes from: decentralization (no single point of failure), cryptographic hashing (linking blocks), consensus mechanisms (requiring network agreement), and immutability (extremely difficult to alter past records). Attacking a major blockchain would require enormous resources.
Nodes are computers that maintain a copy of the blockchain and validate transactions. Full nodes store the entire blockchain history, while light nodes store only essential data. More nodes mean greater decentralization and network resilience.