Cryptocurrencies: Bitcoin vs. Bitcoin Cash Part One

Maria Todorof
A free video tutorial from Maria Todorof
Experienced Legal Education Professional
4.0 instructor rating • 2 courses • 1,284 students

Lecture description

•How cryptos differ from fiat money.

•How are they secured.

•How the Bitcoin Blockchain works in practice.

Learn more from the full course

Blockchain and cryptocurrency explained

Blockchain, Bitcoin, Bitcoin Cash

38:50 of on-demand video • Updated

  • What is Blockchain and how it functions
  • What is cryptos and how they link to blockchain
English [Auto] OK. Hi. So we start with a lecture on bitcoin versus big Bitcoin Cash. Let's talk a little bit about cryptos. What what descriptor crypto currencies are digital currencies. They're similar to fiat currency ordinary money for example the euro but they also differ from their fiat money. Are the legal money for a state that you should buy the state backed by the state cryptos are issued and backed by the block team. How are they secured by encryption popular a fiat money and the dollar the euro the pound popular cryptos are the bitcoin the light coin dash repo peer coin Dutch coin you name it. In reality crypto tokens and these tokens can be used for specific transactional purposes for example to buy to sell to invest to trade to microchip or to transact in any other other any way imaginable on a certain trading platform. What do we mean when we say that crypto currencies secured by encryption. This means that the block 10 uses encryption for the generation of units of tokens of the particular currency. This also means that the crypto currency is regulated and the transactions with this crypto currency are verified by encryption or to the purposes of encryption to protect from counterfeit. In addition to being encrypted cryptos are deemed protected because they're issued. But this decentralized network as opposed to a centralized one for example when fiat money are issued by a government guarantee the government that issued them can interfere with the fear they can increase their value or decrease their value. Can can do quantitative easing. And this is something that manipulation of the currency cannot happen with crypto currencies because of the distributed ledger is decentralized so let's see how this works in practice. The Bitcoin the bitcoin protocol is built on a block chain on the on the bitcoin block chain. It was created by someone called Satoshi Nakamoto who we don't know whether he was a real person. This is just a pseudonym. The gun that came out of court. Bitcoin a new electronic cash system that's fully peer to peer with no trusted third party. So what did he mean that Bitcoin should be used for cash transactions. Whether this is still the case we're going to see it it is peer to peer or what does it mean that there is no intermediary between the transacting practice. How how does this change the transaction will make it faster and makes it cheaper why do we say Bitcoin block though. Well because the transactions with Bitcoin are recorded on the bitcoin block chain and new transactions are recorded on a new block 10 blocks or it this way increasing the length of time rocketing network of bitcoin blocks to network. However not all transactions will be recorded it on bit complexion. Remember that only Bitcoin based transactions will be so different currency will have a different block chain attached to it. The same applies to all types of crypto us was a bitcoin or bitcoin owner has spent Bitcoin or has transacted with the Bitcoin. This transaction has to be verified by the computers on the bitcoin block to network a transaction is a signal to users to start solving the mathematical problem and to produce a hash for the new block. Whoever solves the hash conscious on you block the solution of the problem must be easy to check by the rest of the network through an algorithm the hash solver verifies the transaction at hand and records it on the block. Let's compare now Bitcoin to Bitcoin. Bitcoin Cash the block size limit of bitcoin is two megabytes. The Bitcoin Cash limit is eight megabytes. This allows for more transactions and for higher processing speed. Why did we need Bitcoin Cash. The short answer is Because Bitcoin had to scale and it had to start accommodate everyday transactions. Bitcoin had become way too expensive. It was impossible to get the bitcoin and go pay for our coffee and for this reason. A big part of the users all of them but the big part of the users felt that the time for creating Bitcoin. Bitcoin Cash has come. How was this done in practice. This was done in practice by using a process known as a hard fork or which I'm going to explain in more detail in the last lecture. Let's recap. Too late. What did we learn from this lecture. First we learned how to differ from fiat money how they are secured and how the bitcoin block trend works in practice including how Bitcoin gave rise to Bitcoin Cash. Thank you very much. And stay tuned for our last lecture today.