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How Bitcoin Works Under the Hood

CuriousInventor - 2013-07-15

A somewhat technical explanation of how Bitcoin works. Want more? Check out my new in-depth course on the latest in Bitcoin, Blockchain, and a survey of the most exciting projects coming out (Ethereum, etc): https://app.pluralsight.com/library/courses/bitcoin-decentralized-technology
Lots of demos on how to buy, send, store (hardware, paper wallet). how to use javascript to send bitcoin. How to create Ethereum Smart Contract, much more.

Shorter 5 min introduction: https://www.youtube.com/watch?v=t5JGQXCTe3c

Written version: http://www.imponderablethings.com/2013/07/how-bitcoin-works-under-hood.html

My Bitcoin address: 13v8NB9ScRa21JDi86GmnZ5d8Z4CjhZMEd 

Arabic translation by Ahmad Alloush

Spanish caption translation by Borja Rodrigo, zordycorak@gmail.com, DFJWgXdBCoQqo4noF4fyVhVp8R6V62XdJx

Russian caption translation by Alexandra Miklyukova

Italian voice over: http://youtu.be/1aEf3qr7UdE
Italian captions translated by Simone Falcini, 1H5KdCnBooxfqpXtyQBBAKKRU7MkCZCVCe

C Ad - 2014-08-15

0:10 overview, 1:38 sending money, 3:45 txns and ledger detail, 6:19 complex txns, 7:40 anonymity, 9:20 txn security, 10:50 ordering of txns, 11:02 blockchain, 12:10 crypto hash, 13:37 end of chain insecurity, 14:05 double spend attacks, 16:00 why double spend is hard to pull off, 17:45 mining, 18:30 txn fees, 19:00 mining pools, 21:11 recap

Oscar Centeno - 2014-02-21

yeeeeeah......I'm gonna have to watch this again.

Great North Nerd - 2014-03-15

Next time: how Bitcoin works IN the Hood

Grace Brosnan - 2014-01-29

Alice is a jerk.

Joseph Taylor - 2016-07-08

This went way over my head. But I kept listening anyways.

MrAustinValentine - 2015-08-11

i think my brain broke....

Cryptonator - 2016-09-02

you're the first person to have explained such a complex system in such a simple way .. thankyou for this vid !

Jan Bruun Andersen - 2014-03-16

Thank you, thank you, thank you!

Finally an explanation of how Bitcoin works that makes sense for paranoid programmer like me. No hand-waving, no vague references to wallets and apps and exchanges. Just the facts with enough detail to make sense, and without drowning in mathematical details.

Klas Mellbourn - 2014-03-16


Sebastiaan van der Heide - 2015-03-02

Thanks for uploading this, I've been watching quite a bit about Bitcoin and this is the most in depth video I've found yet. Must have taken quite a bit of research to get all of this figured out.

CuriousInventor - 2015-03-08

months and months :) glad it helped.

Ki d - 2014-01-30

who the hell made all this possible

chopcooey - 2015-11-27

omg this system is so intelligent and also great explanation; mind = blown

Evil Speculator - 2015-09-16

That was brilliant and in little over 20 minutes answered a ton of questions I couldn't find an answer for in weeks of reading BC related articles/tutorials. Thanks so much for putting this together!

M Ralev - 2014-01-05

Actually one of the best bitcoin movies I've watched.
Thank you for explaining this sh*t for me :)

Liberty Speak - 2015-06-21

This is just what I have been looking for, I'm finally wrapping my head around the blockchain. Thanks so much! :)

Guilherme Furst - 2013-11-21

My brain hurts, but it is indeed explicative ;)

Mohamed A - 2015-03-11

This would be a great asset, to country like mine, Somalia, that does not have central bank and you always have to keep your money as cash in your home that makes it very dangerous.

Christopher Embry - 2013-11-16

Simply the best educational video. I've been referring my friends to this video when they ask what Bitcoins are.

giancarlo3000 - 2013-12-10

I feel stupid. I watched the video twice and my head is still spinning

{Forbidden.Knowledge} - 2016-07-11

OMG! My neurons just fried.

Alex Chen - 2013-11-19

One of my friends bought bitcoins when they were at an all time low, not knowing their worth, and checked a few days ago and saw he made 20,000 dollars on it. Hilariously he lost the key, though.

LeeviON - 2013-11-25

Yup. I would have about 100 000 dollars worth of bitcoins right now if I hadn't forgotten about the wallet and reinstalled my operating system, deleting all the files. :'(

John Richter - 2013-12-09

@LeeviON Now THAT is a bad day.

Martin Frické - 2014-06-24

This is a brilliant exposition—accurate and brief with not a word wasted. Congratulations (and thanks).

Robert Petties - 2015-06-22

My mind blew up..

99monkees - 2014-03-06

20:47 trust is inherent to ALL bitcoin transactions, that's the recommended 10min before you give up your trust.

jedharrisonmoore - 2013-11-26

Thank you very much! I will share this with everyone I know interested in bitcoin. To me at least, it was extremely well explained!

chanm01 - 2014-01-27

That was actually pretty fun stuff to learn about. I feel like I just watched an episode of GI Joe!

Railroad Reg - 2014-01-15

And when they shut down the electrical grid???????????

丁文宣 - 2015-11-29

Thanks for this good video. Its a shame too many people are so ignorant they think its a ponzi scheme.

tikkj - 2015-11-05

Extremely useful and informative, thank you :). Now I finally know wtf blockchain technology is and how it can apply to areas outside of bitcoin.

surearrow - 2014-02-07

If you are no longer confused, then you obviously don't understand bitcoins.

Geniscannon - 2013-12-17

Thanks for the explanation.  But still having a hard time understanding why Bitcoin exists.

404 Limit - 2014-08-04

you can get others to cash out for you or with faked id don`t kid yourself

cobra60six - 2014-08-05

@Hd Dota you could, but that someone else will usually want $ etc for doing it. 

handfullocheez - 2014-08-06

people are using it to develop algorithm developments baugh. it sounds curious to me, but i'm not sure what to expect, regardless of whether or not it is deflationary. 

Mackle Palmeroy - 2014-09-24

@***** goats!

Horacio Spinelli - 2014-10-01

This of it this way bits are more cost effective to print.

conventional physical wealth that has no intrinsic value is the past.

The future will 100% use bits/pixels for the representation of wealth.

Also both physical convetional and physical bits can have intrinsic value.

AllanT - 2014-01-16

you mean: "I think they have value because I'm dumb" ?

Allan AV - 2014-02-09

Thank you for the video, great simplified explanation of several very complex complex subjects involved in Bitcoin. It made my life so much easier in explaining the workings of BTC to my non technological inclined friends, and family.

FurryMurry7 - 2014-01-10

Thank you for this video!  I've been trying to learn what bitcoin is for ever but it was always too difficult to understand.  Your video makes it SUPER EASY to understand how bitcoin works!!!  Thank you soo much!  I love you!!!!   :D

DAHstra - 2014-02-03

re: Dan - Thanks for this video, it WAS great! I feel I have good overall concept of bitcoin, while not understanding the math.

WrestlingJesus - 2014-02-18


Oscar Garcia - 2013-11-30

My brain is in pain

ciao716 - 2014-06-05

i'm writing an essay, for my finals, on bitcoin, finally a good resource where all information are gathered, simply, and summarized efficiently :)

RandomBro5 - 2014-12-11

Thank you so much! :D I'm working on a project for school about Bitcoin, and your video's have been very helpful!

Niels - 2014-04-03

finally i know how bitcoins work, thank you for the great explaination!

frottery - 2013-11-27


in the future, long before mining ends the vast majority of the funds from mining will be the transaction fees. so long before there are no 'mining rewards' the amount gained from transactions will vastly overshadow the reward for solving.

rGG - 2014-06-18

Excellent video, thanks for the info.

Nicola Staub - 2015-06-09

As Dan Kaminsky once said: "The first time you think you understand it, you don't".
I felt exactly the same way, but after following your explanations for a few time, I finally got the principle idea.. :) Thanks for the good explanation! ;)

Samuel Feder - 2013-12-16

Thanks for having made this video!

I found it highly informative and very well presented! =D

xxxxxMojoxxxxx - 2014-03-09

Neat, this was very informative! Thank you!

Reinis Lusis - 2013-12-03

Hey! Thank you! This is best video and goes into great detail. Good job! :)

The Farmer - 2015-10-23

Thank you sir, it's the best most detailed video I've seen about this new world. thanks again. I appreciate your efforts.

Henry P - 2014-02-13

BEST bit coin tutorial EVER! Well done and perfectly explained. Thank you

Matthew Pepper - 2016-08-06

This video is amazing. It answered so many of questions and provides a understandable yet in depth explain of bitcoin. Thank you for this awesome video.

Cryptotrade Media - 2013-12-02

Beautiful presentation. Thank you!

Lucas Ashbaugh - 2014-02-17

This was an awesome explanation, you did an excellent job taking my understanding from beginner to intermediate. Thanks!