EPISODE 2 Bitcoin - The Visual Autobiography - all about Bitcoin and Blockchain. How Bitcoin works.
Channel: Joe Martin
Date: 2019-06-12

Hi, I’m Bitcoin and I live on a blockchain. Isn’t that awesome? Let me explain to you why my home is super secure and all my data is immutable.

You can find Episode ONE here: https://youtu.be/EVIr_gb-q6I

Further Information: https://blockchainprivileged.com/
Get the Book: https://t.co/mOG6b71y2x 
Get your own Expainr-Video: https://explainr.tv


A Blockchain is exactly that – a chain of blocks that is always being added to. Nice and simple.
As a cryptocurrency, I live in a blockchain because it’s incredibly secure and well protected – Let me explain.

My home, Blockchain is super secure because each block is attached to the one in front of it by a cryptographic link. To understand cryptographic links, we must know what a Hash is.
A Hash is a unique set of characters that can be derived from any set of digital information on the internet. The information can be anything from your initials to a whole to a few words to a whole long book or even a feature film, a music video – or a whole lot of Bitcoin transactions. 
SHA256  is the algorithm used to generate Hashes in Blockchain. SHA stands for Secure Hash Algorithm. Each Hash has 64 characters, no matter how huge or small the body of information is.
When a hash is created, the information is called The Input and the Hash is called The Output.
If the smallest change is made to the Input, the Output, or Hash will change completely.

Now I Input the exact same words, but with a lower case “b”, not an upper case “B”.
Look at the difference in the Output! The Hash is exactly the same length, but has totally different characters. But how does a SHA256 hash keep me safe in my BlockChain home?

When the first block of a chain is created, it gets its own Hash.
Next comes block 2. lock 1’s Hash is included in the information in Block 2. When block 2’s Hash is created, it automatically includes the block 1’s Hash. And so it goes. Block 10 will include the Hash of block 9. 9000 will include 8999’s hash.

Why is this so important?
Remember, the smallest change in the Input data will totally change the Output, or Hash. Now, let’s imagine some bad guys break into my home – the Blockchain. They change the data in block number 5. Instead of sending 1,250 BTC they change the number to 12,50 BTC. That’s a huge change in value by only moving the decimal point one place. But I will see it immediately because the Hash of Block 5 will change dramatically. This will knock on and radically change the Input information for Block 6. Bock 7 is next and this will ripple all the way along the Blockchain to the last block created. In an instant I know the data is not safe any more. I know some unauthorised changes have been made and I must react.
In the next video I’ll explain exactly how I know information has been changed and what I am going to do about it.

The Most Important Things on One Page

To be active in the emerging world of cryptocurrency, you must first to understand the systems that underpin it and that will help to shape the future. It is vital that you understand three fundamental pieces of information before you begin any activity related to cryptocurrencies. Without these three key considerations, you cannot fully understand and navigate the intricacies of the crypto world. Without these three foundational rules, you become extremely vulnerable to financial losses if you become active. 

The rise of Bitcoin & Co. has created a gold rush of sorts. There are a lot of frivolous offers from opportunists out to make a quick buck from the hype. In a more sinister twist, there are also seasoned fraudsters who actively look for ways to part you from your money and your crypto-credit. These criminals range from the shady opportunist to the seasoned professional. To navigate this world, you must always be on your toes.

For that reason, you should read these instructions repeatedly. Internalize them and let them sink deep into your subconscious. The following principles must be applied intuitively. Gauge everything—every single thought and decision—by these principles. 

1.  Ensure that you—and only you—have the “Private Keys” to your cryptocurrencies (that is, Bitcoin and Co.). Always. No one else!
2.  You can only unconditionally trust a genuine public blockchain with many completely independent nodes.
3.  The Computer Source Code of a trustable blockchain system is always openly accessible and can be examined and used by everyone. 

Even if you don’t yet understand what “Private Keys” are or know what a genuine Public Blockchain is, never forget these principles. Analyze every offer from this perspective, no matter how attractive it seems. Do not allow yourself to be tempted into breaking these rules. Read my book carefully, understand the importance of these rules, and question every offer with this knowledge. That is the only way to protect your property.