Join our study and help us improve the website by clicking here. We’re sitting on a park apples 4 bitcoin. I have one apple with me, I give it to you.
You now have one apple and I have zero. My apple was physically put into your hand. We didn’t need a third person there to help us make the transfer. I can’t give you another apple because I don’t have any left. The apple left my possession completely.
You have full control over that apple now. You can give it to your friend if you want, and then that friend can give it to his friend, and so on. So that’s what an in-person exchange looks like. But I’m getting ahead of myself.
Now, let’s say I have one digital apple. How do you know that digital apple which used to be mine, is now yours, and only yours? Think about it for a second. How do you know that I didn’t send that apple to Uncle Tommy as an email attachment first? Maybe I made a couple of copies of that digital apple on my computer.
Maybe I put it up on the internet and one million people downloaded it. As you see, this digital exchange is a bit of a problem. Some brainy computer scientists actually have a name for this problem: it’s called the double-spending problem. All you need to know is that it’s confused them for quite some time and they’ve never solved it. But let’s try to think of a solution on our own. Maybe these digital apples need to be tracked in a ledger. This ledger, since it’s digital, needs to live in its own world and have someone in charge of it.