Bitcoin and cryptocurrency in simple terms

OPENNESS. An example is the open ledger that is visible to anyone who wants to see it. All operations carried out in the Bitcoin system are publicly available - Blockchain.info.

AUTHORITY. The blockchain database is distributed among millions of participants that all have the same copy. Unlike a centralized base, we have copies of blockchain data on different continents and in different countries.

DECENTRALIZATION. The blockchain database lives in different jurisdictions. The regulation of one country does not allow to control the Bitcoin system.

CONTROL FOR HONESTY. Lack of monopoly on recording the information. Usually, whoever created the database can modify it. Bitcoin system allows to record data randomly, and it is unknown who exactly records the information until the calculation of the block. For that, miners exist. By choosing a miner at random, the system gives the right to record a block that applies to all copies.

Miners are people that calculate formula using computer power. The one who correctly calculates the formule (this is determined randomly) earns a reward from the system. That is, a commission is paid out for calculating each block.

The Bitcoin system pays for its life support to those people who want to play the game. A reward is sometimes (periodically) reduced by 2 times, which is called halving. Initial reward was 50 Bitcoins.

IT IS IMPOSSIBLE to change a recorded block because the end