Bitcoin Course | Big Picture Basics 4.3 - Cryptography Pt2

As we transition from the physical intricacies of the global network of mining hardware and the warmth they produce, we step into the limitless realm of cyberspace. This digital dimension houses a vast expanse of data, memories, videos, photos, and myriad digital transactions that move like whispers, effortlessly traversing the globe.

For Bitcoin, the journey began with a simple yet revolutionary premise: leveraging this vast domain to record and authenticate financial transactions.

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Financial Disclaimer:

This video is for educational and informational purposes only and should not be considered as financial advice or an investment recommendation.
The opinions expressed herein are solely those of the presenter and do not reflect the views of Hashpower Academy. Information is provided ‘as is’ and without warranties, either expressed or implied. We do not guarantee its accuracy or completeness. Investing in cryptocurrencies involves significant risk and should be undertaken only by individuals who can afford potential losses. Viewers are advised to conduct their own research and consult a qualified financial professional before making any investment decisions.

Video Transcript:

[Music] the best defense is a good offense what do I mean by this well you’ve just learned so far that cryptography is used as a Def defensive mechanism so that we can all transact freely without any interference so I can broadcast that I want to send some Bitcoin but that transaction it goes into a pool of transactions saying hey these are verified transactions that want to be put in a block now here’s the interesting thing the block is encrypted it’s not decrypted it’s encrypted and so it’s a jumble of text and a number of zeros and that number of zeros is what Bitcoin miners are trying to find with all their electricity turning into hash power that hash power is actively looking to break the encryption of that block and when the miner finds that block they earn the reward they earn the transaction fees that they put in that block and they earn the subsidy of that transaction so Bitcoin is an amazing Network that uses cryptography both to defend wallets logically and people use energy to attack the network as its defense it’s a weird conundrum of paradoxical concept but what it means is that Bitcoin has a logical protection layer and a physical energy protection layer around it as well so we can freely transact and what this turns out to be is the best physical analogy would be would you rob a bank that had half a million in the vault but it cost you a million to break break into the Vault that’s how secure bitcoin’s network is that it would cost you more to break in than what you could actually extract out so it makes it pointless the best attack on bitcoin is to just find the next block in the chain you earn the reward and so it’s a reward mechanism for people that want to participate in protecting the network instead of attacking [Music] it [Music]

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