Bitcoin is a complex beast, and if you’re like me, you’ll often tie yourself up in knots trying to explain it.
So I decided to set myself a challenge, to best explain the basics of Bitcoin in 100 words or fewer. Here’s my effort:
Alan has $1000 and wants to pay Barbara $500.
Currently the bank updates Alan’s balance in their database to $500, and Barbara’s to $500. We must trust the bank to be honest.
In Bitcoin, Alan writes a note saying he wants to pay Barbara $500 and sends it to everyone.
Everybody also keeps a copy of every single valid note that has ever been written (the blockchain).
Everybody checks through their old notes to make sure Alan has $500 to send, and if he does they add his note to their collection.
For privacy and uniqueness, Alan calls himself 1H2zNWjxkaVeeE3yX6uVqng5Qoi6gGvYTE.
What do you think? Feel free to have a go yourself in the comments, maybe we can crowd source an elegant way to effectively explain Bitcoin. I may try and explain a few other concepts around Bitcoin in 100 words or fewer, so look out for those.
I’ve recently started blogging about Bitcoin. If you liked this article please check out my others! Tips welcome: 1H2zNWjxkaVeeE3yX6uVqng5Qoi6gGvYTE
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