Topic: Why all the Bitcoin has to be in the Blockchain ? (Read 367 times)

I suddenly realized that I vaguely imagine what a blockchain is. I understand that this is something that records transactions with cryptocurrencies, something like a database, but for some reason, the details elude me. Thanks for the links. It seems I need to fill in the gaps in knowledge.

Blockchain means chain of blocks,a block is like a contains that store or save bitcoin. Imagine when you small boxes or saves,put on top of each other to make a long block. This is how the blockchain is.
 The block must be on each other to make the blockchain,the blockchain consists of every file of all information in a single block put together,this is possible by mining. Any transaction done in any of these blocks will be added to all the blocks put together as one (blockchain),so that any bitcoin spent in a transaction can not be used for another transaction.

there are many more resources in this forum. try them too. good luck

wow. thank you for mentioning these Valueable posts here. I was finding what lightning network is.

well ! there are many resources in this forum.  i will post some here. yoou will be able to go through those links and find some details. these posts are posted my legendery members and other ranked members. i have also solved many questions i had by going through these links and by reading the comment sections of those.

lightning network

https://bitcointalksearch.org/topic/the-lightning-network-faq-5158920


https://bitcointalksearch.org/topic/lightning-network-observer-5348270


use these links for now. i will post others later

Blockchain is just a digital ledger used to keep track of all crypto transaction records.
It is not that all Bitcoins are in blockchain.
Bitcoin is stored in a wallet and the wallet's private keys or seed holder controls/owns the Bitcoin that's why the crypto community said this catchphrase "Not your key not your coin".

The importance of blockchain is to store the data when a person is in a transaction like sending or receiving Bitcoin. Why do Bitcoin need to store data?. The data that is stored like header, parent block, amount and more which is to avoid a duplicate of bitcoin. For example, you have 1 BTC on your wallet and you are going to send me all of it so that means you don't have the 1 BTC anymore and that will be stored on the blockchain. If Bitcoin does not store bitcoin data on blockchain then when you send me the 1 BTC then you also have 1 BTC on your wallet. This situation is called double spending where the BTC is used TWICE.

Hello mate, this is an English language board so it is much better if you post it in English or rather post in local board. Not all people understand multiple languages.

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B кoнцe кoнцoв этo пpивeлo к тoмy, чтo oн yбpaл cвoe имя из зaявлeния oб aвтopcкиx пpaвax нa биткoин, oбнoвил caйт Bitcoin.org и дoбaвил в нeгo кoнтaкты дpyгиx aктивныx paзpaбoтчикoв.

B пocлeдний paз Caтoши Haкaмoтo пoявилcя в ceти пoчти 11 лeт нaзaд — 26 aпpeля 2011 гoдa. B тoт дeнь oн нaпиcaл кopoткoe пиcьмo oднoмy из cвoиx copaтникoв Гэвинy Aндpeceнy (coздaтeлю пepвoгo биткoин-кpaнa), в кoтopoм пepeдaл eмy кoпию кpиптoгpaфичecкoгo ключa oт cиcтeмы oпoвeщeния бeзoпacнocти биткoинa и нaпиcaл нecкoлькo cлoв o cвoeм видeнии oтнocитeльнo дaльнeйшeгo paзвития ceти.

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No one knows. And even if someone knew, they haven't stepped up yet to reveal satoshi's identity. We have gotten to a stage where it doesn't matter. The creation works and whoever invented it can't make arbitrary changes without the support by the majority of stakeholders.

craig wrihgt (intentionally spelt wrong and in lowercase letters due to a lack of respect) is a liar and a fraudster. Don't believe a word that comes out of his mouth because he can't prove anything. A few years ago I translated a topic by nullius in my native language. You can take a look at the original. It's an interesting read > Project Anastasia: Bitcoiners Against Identity Theft [re: Craig Wright scam]  .

It's okay to be curious but i wont bother knowing who satoshi is. Because since then still no one can verify who he really is. As long that no one can be able to sign a message using those first bitcoin addresses used to receive those early mining rewards which consider to be owned by satoshi, then bemg satoshi will still remain unknown. Those claims you're reading online just wants attentions, most of them are frauds.

About bitcoin being on a blockchain. Well, every data needs to be recorded, in a database. Blockchain as a database is well-designed just to store these data. And using your bitcoin wallet, these data can be received and be sent as Bitcoin.

The "Californian Japanese man"? Do you mean Dorian Nakamoto, the one on the famous picture of Satoshi as a Japanese guy in glasses?
If yes, he already claimed that he's not Satoshi years ago; satoshi still remains anonymous.

This is wrong.
Your coins are infact stored on the blockchain and not your wallet. Your wallet (software or hardware) is used to access it.
Your wallet holds your keys (private and public) which allows you access and sign transactions on the blockchain.

Your Bitcoin is always on chain, whether or not you're making a transaction. But you need internet connection to broadcast a transaction to nodes.

When you make a transaction, the coins do not move to a new wallet. They are "spent" and in accessible by your private keys at that time, and are now associated to another set of keys, from which the holder of those keys (through their wallet of course) can spend them.

If you want to be extra private. You do not need to connect your private keys to the internet to make a transaction, as you do not need internet connection to sign a transaction.
You can create a raw unsigned transaction, sign that on your airgapped device and broadcast it on a watch-only wallet.

Your Bitcoin is in your wallet, not on the blockchain.

When you want to move your Bitcoin, you must make an on chain transaction, on Bitcoin blockchain.

After a confirmafion, your coin will be moved to another wallet and when more confirmations for that transaction are done, it will be less likely to reverse it by 51% attack.

You only have to connect your wallet to Internet if you want to make transaction.

When Satoshi Nakamoto invented bitcoin back in time it was set-up as alternate to the traditional mode of payment digitally over the internet but in a decentralised manner and to keep the record of it blockchain was needed.It is like a public ledger which is also decentralised and each and every bitcoin transaction is recorded in the blocks here.So you see it is whole system managing the network keep records of the database and when you need information you can drain it out accordingly.If there was not any system how could you see any past transaction?

So blockchain keeps the whole records of the transactions in the blocks mined and verified by the miners and each transaction have the fees that goes to the miner who has found the block.So you will learn a lot about these things once you start your journey.

For your help there are some resources like others have mentioned and over it you must read Mastering Bitcoin that will give you enough knowledge about bitcoin working.

He is anonymous and nobody knows about him and his last presence on the forum was December 13,2010 but Craig Wright is only clown who claims to be Satoshi to have those coins but can't prove anything in support of his claim and can't even sign a message from to verify his fake claim.So don't trust him on the matter.

Many have wished the same and it's far much better then fiat currency which is inflationary and under Central authority while bitcoin gives you financial freedom and is deflationary but whenever you come to know about it's the best time.

The best way to keep your bitcoins is the Hardware wallets or non custodial wallets that don't have your keys and your funds remain yours.You can check for them here.

We all have no idea who actually is that person. In fact, there are even many attempts where people pretend that they are Satoshi but they can't prove it otherwise. If you have time at your disposal, you can check a massive list of satoshi related discussion here: https://bitcointalksearch.org/topic/i-gathered-every-satoshi-nakamoto-thread-5271796

You can pretty much learn about the basic of bitcoin wallet here: https://bitcoin.org/en/choose-your-wallet.

Earning bitcoin, on the other hand, is quite similar on how you earn your local currency. This means you provide a service, have a day job, or simply buy bitcoin in exchanges.

Neither. Satoshi Nakamoto is the anonymous founder/inventor of Bitcoin. Anonymous hence we have no idea about his/her/their personal identity.


https://bluewallet.io/

It should be easy enough to understand.


You either earn bitcoin like how you earn money, or you buy bitcoin like how you convert your local currency to another currency.

Thank you very much. You all are very kind persons. I have read and watch few of them. I am also learning but some time it is difficult, too much technical things. I am thinking to buy some Bitcoin.

Who is really Satoshi Nakamoto ? Is that Californian Japanese man or Craig Wright ?  I am confused about it.

Bitcoin is very good sound money. Better than paper currency . I wish I would have known about it 10 years back.

Please teach me about how to manage Bitcoin Wallet. And suggest me how can I some Bitcoin ? 

Where else would the bitcoin be if not on the blockchain?

Just as with any other currency or any other app/program in general, it's going to need to have a database to store all the data. A blockchain is Bitcoin's way of storing all that data while not trusting all the data to a centralized entity. Instead, all that data is widely distributed.


* If you like reading articles: https://coindesk.com/learn
* If you like reading books: https://theinternetofmoney.info/
* If you like watching videos: https://www.youtube.com/playlist?list=PLPQwGV1aLnTuN6kdNWlElfr2tzigB9Nnj

Think of bitcoin as a decentralized distributed ledger that keeps records of all transactions that have ever been conducted. There are no "coins" in this ledger, only messages or "entries" that tell us who gave money to whom, when, and how much. The design of this distributed system is such that it is immutable (no one can tamper with the entries that have already been added), and it is resistant to double spending (no one can spend the same money twice or more times - once it is moved it is final), it is protected from censorship and fraudulent tampering because every single full node keeps a copy of the ledger and independently verifies every single incoming transaction. Bitcoin cannot exist outside of this ledger because if entries aren't protected or don't meet certain criteria of the system, they don't matter to the system and are ignored. Only those entries that have been added to the ledger via the process of mining can be said to have reliable properties (Proof-of-Work) that make them "worthy" to become part of history.

wrong
bitcoins never leave the blockchain
every coin ever mined stays on the bitcoin network

lightning network uses a locked reference of bitcoins that are LOCKED on the bitcoin network
where by the locked UTXO is then referenced to peg millisat balance on the lightning network at a ratio (thats not a hard rule and can be manipulated so be warned) of 1sat:1000msat
the lightning onion payments are measured in millisats not bitcoin
millisats(msat) are a unit not recognised by the bitcoin network

lightning networks pegging mechanism is not secure. LN does not have a network wide audit system or consensus to secure value. thus its not a network that should be thought of a secure trusted network for long term store of value

its the whole purpose of why blockchains are such a great invention because smart contracts were weak. all cypherpunks knew this.

with recent issues with many sidechains and subchains that messed with their pegs. it should be best practice to make people aware not to trust other networks that say they are transacting bitcoin when infact they are not the bitcoin network and using tokens/units of a different name/measure.
fine use the other networks as a short term niche use for a certain reason as long as you learn about the risks and accept the risks. but dont trust them as the long term store.

same goes for using middlemen services where you send them bitcoins to their bitcoin network address and they give you some other database balance displayed on their website to play with. that website balance on their site are not real bitcoin. they are just a balance on a database that supposedly represents balance they owe you


bitcoins security is the very reason bitcoin is great, be aware of the risks of services and other networks that pretend to offer you bitcoin off the network

Well, depending on how you look on it, it might not always be on the blockchain. Lightning network transactions are Bitcoin transactions that don't get immediately broadcasted to the network and added to a new block. This allows the parties that have a Lightning channel to save on fees by making many transactions between themselves and then only making one transaction on the blockchain. So Bitcoin in Lightning Network doesn't exist on blockchain until the channel is closed.

Then there are things like Bitcoin custodians. They could be running at fractional reserves and lending more Bitcoin than they have, effectively creating virtual Bitcoin. This does not exist yet, but might become more widespread in the future.

As a new person to Bitcoin, what you actually need now a beginner guide to Bitcoin, of which I will start by explaining What is Bitcoin? Bitcoin is a decentralized digital currency that was invented by a man named "Satoshi Nakamoto" with the sole aim of eradicating middle men from the transaction process, which is independent on its own, not controlled by either central bank or government, and enables fast means of transaction across borders in seconds.

But however, here is a detail explanation..

If you love reading, check this out 👇
https://cryptopotato.com/bitcoin-for-beginners/

If you love watching videos, check this out
https://youtu.be/MaLpcTOVkJE

These two source are the best guide for a beginner to understanding Bitcoin better

Firstly, I welcome you to this forum, I hope you find your time here beneficial.

It is a match made in heaven, they were created for each other, bitcoins cannot exist without blockchain.

Luckily for you, there is already an active discussion that someone who was interested in learning about bitcoins from the basics started, and the response below from tranthidung is the most striking and appropriate response for you.

different networks have differing units/data,

the bitcoin network audits secures bitcoin
its a network that has rules for how bitcoins are created and how they are secured.

the great part of the security is that because they cant be moved out of the network they also cant introduce-reintroduce coins into the network that are not part of the creation rules of mining.

thus it secures the rule that results in the eventual near 21m bitcoin circulation

by enforcing a rule where coins cant systematically be removed or randomly introduced outside of the rules makes it god money that is a good store of value.

though coins cant be removed. they can be locked.

some people lock coins by losing forgetting their private key that allows spending them. thus they just stop being used forever.

some people purposefully lock coins by using a feature that time delays spending ability. which then allows them to use it as a peg(value reference), to then represent value in other networks while that delay lock is active (much like locking gold in a vault to then use a recept of the vault to then use as a value note/certificate/promissory note)

It has to be in a blockchain, because it is digital currency. It is not physical like cash. Therefore, the distribution of bitcoin has to be tracked in some decentralized database that is running on every Bitcoin node.

Think of the blockchain as a the all-seeing tracker of everybody's money - though it obviously doesn't know your name and identity - where the banking system failed to track money.

It should be noted, that credit that you see in banks is also stored digitally, though obviously without blockchain technology. You have used "credit" if you have ever bought something with a credit card or debit card.

Hello Everyone's !
I am a Monk. Recently I have heard of Bitcoin. I am learning now. I want to know why all the Bitcoin has be in the Blockchain ? I also want to learn about how Bitcoin really work ? Is there a good teacher , who can teach about Bitcoin and Blockchain ? I want to buy some Bitcoin but do not know how it work ?

Please teach me !
Thanks.