WEBVTT
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Language: en

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the<00:00:00.179><c> goal</c><00:00:00.329><c> of</c><00:00:00.480><c> this</c><00:00:00.570><c> video</c><00:00:00.900><c> is</c><00:00:01.140><c> to</c><00:00:01.290><c> explain</c><00:00:01.380><c> the</c>

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the goal of this video is to explain the
 

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the goal of this video is to explain the
essence<00:00:02.100><c> of</c><00:00:02.280><c> how</c><00:00:02.399><c> Bitcoin</c><00:00:02.639><c> works</c><00:00:02.820><c> without</c><00:00:03.240><c> any</c>

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essence of how Bitcoin works without any
 

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essence of how Bitcoin works without any
jargon<00:00:04.049><c> or</c><00:00:04.230><c> scary</c><00:00:04.620><c> math</c><00:00:04.859><c> it</c><00:00:05.549><c> is</c><00:00:05.640><c> not</c><00:00:05.850><c> however</c>

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jargon or scary math it is not however
 

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jargon or scary math it is not however
an<00:00:06.480><c> introduction</c><00:00:07.049><c> to</c><00:00:07.080><c> what</c><00:00:07.379><c> bitcoin</c><00:00:07.620><c> is</c><00:00:07.980><c> or</c>

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an introduction to what bitcoin is or
 

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an introduction to what bitcoin is or
why<00:00:08.460><c> it</c><00:00:08.519><c> matters</c><00:00:08.970><c> for</c><00:00:09.599><c> that</c><00:00:09.750><c> check</c><00:00:10.050><c> out</c><00:00:10.139><c> the</c>

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why it matters for that check out the
 

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why it matters for that check out the
great<00:00:10.530><c> intro</c><00:00:10.920><c> video</c><00:00:11.219><c> at</c><00:00:11.490><c> bitcoin</c><00:00:11.910><c> org</c><00:00:12.450><c> with</c>

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great intro video at bitcoin org with
 

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great intro video at bitcoin org with
that<00:00:13.410><c> said</c><00:00:13.679><c> on</c><00:00:13.860><c> to</c><00:00:14.309><c> how</c><00:00:14.429><c> it</c><00:00:14.639><c> works</c>

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that said on to how it works
 

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that said on to how it works
Bitcoin<00:00:16.260><c> lets</c><00:00:16.470><c> people</c><00:00:16.650><c> exchange</c><00:00:17.160><c> money</c>

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Bitcoin lets people exchange money
 

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Bitcoin lets people exchange money
electronically<00:00:18.210><c> as</c><00:00:18.359><c> easily</c><00:00:18.690><c> as</c><00:00:19.080><c> sending</c><00:00:19.109><c> an</c>

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electronically as easily as sending an
 

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electronically as easily as sending an
email<00:00:19.710><c> or</c><00:00:20.039><c> text</c><00:00:20.070><c> to</c><00:00:20.609><c> send</c><00:00:21.210><c> money</c><00:00:21.359><c> use</c><00:00:21.810><c> what's</c>

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email or text to send money use what's
 

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email or text to send money use what's
called<00:00:22.140><c> a</c><00:00:22.439><c> wallet</c><00:00:22.769><c> app</c><00:00:22.920><c> to</c><00:00:23.130><c> type</c><00:00:23.310><c> in</c><00:00:23.430><c> that</c>

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called a wallet app to type in that
 

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called a wallet app to type in that
amount<00:00:23.699><c> enter</c><00:00:24.570><c> a</c><00:00:24.600><c> scanner</c><00:00:24.990><c> recipients</c>

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amount enter a scanner recipients
 

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amount enter a scanner recipients
account<00:00:25.769><c> number</c><00:00:26.039><c> and</c><00:00:26.220><c> hit</c><00:00:26.580><c> Send</c><00:00:26.910><c> the</c>

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account number and hit Send the
 

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account number and hit Send the
recipient<00:00:28.140><c> will</c><00:00:28.260><c> then</c><00:00:28.380><c> see</c><00:00:28.560><c> the</c><00:00:28.680><c> money</c><00:00:28.830><c> pop</c><00:00:29.039><c> up</c>

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recipient will then see the money pop up
 

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recipient will then see the money pop up
in<00:00:29.369><c> their</c><00:00:29.490><c> account</c><00:00:29.820><c> so</c><00:00:30.000><c> how</c><00:00:30.720><c> does</c><00:00:30.779><c> this</c><00:00:30.960><c> work</c>

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in their account so how does this work
 

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in their account so how does this work
at<00:00:31.920><c> a</c><00:00:32.160><c> basic</c><00:00:32.550><c> level</c><00:00:32.700><c> bitcoin</c><00:00:33.180><c> is</c><00:00:33.329><c> just</c><00:00:33.600><c> a</c>

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at a basic level bitcoin is just a
 

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at a basic level bitcoin is just a
ledger<00:00:33.899><c> with</c><00:00:34.200><c> account</c><00:00:34.469><c> numbers</c><00:00:34.530><c> and</c><00:00:34.770><c> balances</c>

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ledger with account numbers and balances
 

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ledger with account numbers and balances
when<00:00:35.940><c> Bob</c><00:00:36.210><c> sends</c><00:00:36.510><c> Carol</c><00:00:36.750><c> five</c><00:00:36.960><c> bitcoins</c>

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when Bob sends Carol five bitcoins
 

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when Bob sends Carol five bitcoins
his<00:00:37.649><c> balance</c><00:00:38.010><c> goes</c><00:00:38.160><c> down</c><00:00:38.340><c> by</c><00:00:38.489><c> five</c><00:00:38.730><c> and</c><00:00:39.059><c> Carols</c>

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his balance goes down by five and Carols
 

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his balance goes down by five and Carols
up<00:00:39.570><c> by</c><00:00:39.690><c> five</c><00:00:39.960><c> there's</c><00:00:40.890><c> no</c><00:00:41.040><c> gold</c><00:00:41.340><c> or</c>

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up by five there's no gold or
 

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up by five there's no gold or
government-issued<00:00:42.120><c> money</c><00:00:42.149><c> backing</c><00:00:42.690><c> these</c>

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government-issued money backing these
 

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government-issued money backing these
numbers<00:00:43.170><c> just</c><00:00:43.680><c> people's</c><00:00:43.950><c> belief</c><00:00:44.280><c> that</c><00:00:44.430><c> the</c>

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numbers just people's belief that the
 

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numbers just people's belief that the
numbers<00:00:44.820><c> are</c><00:00:44.969><c> worth</c><00:00:45.090><c> something</c><00:00:45.420><c> and</c><00:00:45.690><c> a</c><00:00:46.320><c> system</c>

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numbers are worth something and a system
 

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numbers are worth something and a system
that<00:00:46.860><c> prevents</c><00:00:47.219><c> unfair</c><00:00:47.640><c> changes</c><00:00:48.350><c> part</c><00:00:49.350><c> of</c><00:00:49.440><c> the</c>

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that prevents unfair changes part of the
 

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that prevents unfair changes part of the
system<00:00:49.890><c> makes</c><00:00:50.129><c> sure</c><00:00:50.219><c> no</c><00:00:50.489><c> one</c><00:00:50.610><c> can</c><00:00:50.730><c> spend</c><00:00:51.030><c> money</c>

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system makes sure no one can spend money
 

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system makes sure no one can spend money
from<00:00:51.390><c> someone</c><00:00:51.690><c> else's</c><00:00:52.170><c> account</c><00:00:52.699><c> every</c><00:00:53.699><c> time</c>

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from someone else's account every time
 

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from someone else's account every time
you<00:00:54.000><c> hit</c><00:00:54.149><c> Send</c>

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you hit Send
 

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you hit Send
your<00:00:54.870><c> wallet</c><00:00:55.079><c> app</c><00:00:55.289><c> sends</c><00:00:55.710><c> a</c><00:00:55.770><c> message</c><00:00:56.100><c> to</c><00:00:56.309><c> the</c>

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your wallet app sends a message to the
 

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your wallet app sends a message to the
Bitcoin<00:00:56.550><c> network</c><00:00:56.730><c> describing</c><00:00:57.449><c> how</c><00:00:57.570><c> the</c>

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Bitcoin network describing how the
 

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Bitcoin network describing how the
ledger<00:00:57.870><c> should</c><00:00:58.170><c> change</c><00:00:58.469><c> including</c><00:00:59.190><c> the</c>

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ledger should change including the
 

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ledger should change including the
senders<00:00:59.670><c> and</c><00:00:59.910><c> recipients</c><00:01:00.449><c> account</c><00:01:00.690><c> numbers</c>

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senders and recipients account numbers
 

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senders and recipients account numbers
and<00:01:01.079><c> amount</c><00:01:01.800><c> to</c><00:01:01.949><c> transfer</c><00:01:02.340><c> so</c><00:01:03.030><c> what's</c><00:01:03.210><c> to</c>

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and amount to transfer so what's to
 

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and amount to transfer so what's to
prevent<00:01:03.359><c> a</c><00:01:03.719><c> thief</c><00:01:03.989><c> from</c><00:01:04.229><c> creating</c><00:01:04.619><c> a</c><00:01:04.710><c> message</c>

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prevent a thief from creating a message
 

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prevent a thief from creating a message
transferring<00:01:05.519><c> money</c><00:01:05.610><c> from</c><00:01:05.760><c> someone</c><00:01:06.150><c> else's</c>

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transferring money from someone else's
 

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transferring money from someone else's
account<00:01:06.830><c> bitcoin</c><00:01:07.830><c> requires</c><00:01:08.159><c> a</c><00:01:08.250><c> kind</c><00:01:08.430><c> of</c>

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account bitcoin requires a kind of
 

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account bitcoin requires a kind of
signature<00:01:08.610><c> on</c><00:01:09.299><c> each</c><00:01:09.540><c> message</c><00:01:09.810><c> to</c><00:01:10.200><c> prove</c><00:01:10.409><c> that</c>

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signature on each message to prove that
 

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signature on each message to prove that
it<00:01:10.650><c> was</c><00:01:10.770><c> created</c><00:01:11.100><c> by</c><00:01:11.189><c> the</c><00:01:11.250><c> true</c><00:01:11.580><c> account</c><00:01:12.000><c> owner</c>

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it was created by the true account owner
 

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it was created by the true account owner
the<00:01:13.049><c> signature</c><00:01:13.439><c> serves</c><00:01:13.710><c> the</c><00:01:13.890><c> same</c><00:01:14.070><c> purpose</c><00:01:14.130><c> as</c>

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the signature serves the same purpose as
 

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the signature serves the same purpose as
a<00:01:14.729><c> handwritten</c><00:01:15.150><c> signature</c><00:01:15.360><c> on</c><00:01:15.780><c> a</c><00:01:15.810><c> paper</c><00:01:16.080><c> check</c>

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a handwritten signature on a paper check
 

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a handwritten signature on a paper check
but<00:01:16.740><c> it's</c><00:01:16.860><c> based</c><00:01:17.070><c> on</c><00:01:17.189><c> math</c><00:01:17.460><c> rather</c><00:01:17.880><c> than</c>

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but it's based on math rather than
 

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but it's based on math rather than
handwriting<00:01:18.630><c> the</c><00:01:19.110><c> math</c><00:01:19.290><c> comes</c><00:01:19.560><c> from</c><00:01:19.710><c> the</c>

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handwriting the math comes from the
 

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handwriting the math comes from the
world<00:01:19.950><c> of</c><00:01:20.130><c> cryptography</c><00:01:20.310><c> which</c><00:01:21.119><c> is</c><00:01:21.330><c> normally</c>

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world of cryptography which is normally
 

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world of cryptography which is normally
used<00:01:21.900><c> to</c><00:01:22.049><c> hide</c><00:01:22.290><c> secret</c><00:01:22.560><c> messages</c><00:01:22.820><c> but</c><00:01:23.820><c> in</c>

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used to hide secret messages but in
 

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used to hide secret messages but in
Bitcoin<00:01:24.270><c> has</c><00:01:24.479><c> been</c><00:01:24.720><c> repurposed</c><00:01:25.140><c> to</c><00:01:25.590><c> prove</c>

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Bitcoin has been repurposed to prove
 

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Bitcoin has been repurposed to prove
ownership<00:01:26.360><c> each</c><00:01:27.360><c> Bitcoin</c><00:01:27.630><c> account</c><00:01:27.990><c> number</c>

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ownership each Bitcoin account number
 

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ownership each Bitcoin account number
has<00:01:28.439><c> an</c><00:01:28.560><c> Associated</c><00:01:29.159><c> key</c><00:01:29.369><c> that</c><00:01:29.579><c> only</c><00:01:29.729><c> the</c><00:01:30.000><c> true</c>

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has an Associated key that only the true
 

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has an Associated key that only the true
account<00:01:30.509><c> owner</c><00:01:30.780><c> knows</c><00:01:31.110><c> and</c><00:01:31.470><c> is</c><00:01:31.590><c> used</c><00:01:31.829><c> to</c>

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account owner knows and is used to
 

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account owner knows and is used to
create<00:01:32.130><c> signatures</c><00:01:32.729><c> by</c><00:01:33.000><c> encrypting</c>

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create signatures by encrypting
 

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create signatures by encrypting
transaction<00:01:34.110><c> messages</c><00:01:34.640><c> others</c><00:01:35.640><c> test</c><00:01:35.939><c> the</c>

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transaction messages others test the
 

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transaction messages others test the
signature<00:01:36.570><c> by</c><00:01:36.840><c> trying</c><00:01:37.110><c> to</c><00:01:37.200><c> decrypt</c><00:01:37.470><c> it</c><00:01:37.650><c> if</c>

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signature by trying to decrypt it if
 

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signature by trying to decrypt it if
successful<00:01:38.549><c> they</c><00:01:38.909><c> know</c><00:01:39.090><c> the</c><00:01:39.240><c> signature</c><00:01:39.570><c> was</c>

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successful they know the signature was
 

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successful they know the signature was
created<00:01:40.140><c> by</c><00:01:40.290><c> the</c><00:01:40.350><c> true</c><00:01:40.619><c> account</c><00:01:41.009><c> owner</c><00:01:41.220><c> in</c>

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created by the true account owner in
 

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created by the true account owner in
addition<00:01:42.750><c> to</c><00:01:42.869><c> not</c><00:01:43.020><c> relying</c><00:01:43.380><c> on</c><00:01:43.500><c> handwriting</c>

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addition to not relying on handwriting
 

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addition to not relying on handwriting
analysis<00:01:44.490><c> these</c><00:01:44.700><c> math</c><00:01:45.060><c> based</c><00:01:45.329><c> signatures</c>

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analysis these math based signatures
 

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analysis these math based signatures
can't<00:01:46.110><c> be</c><00:01:46.259><c> copied</c><00:01:46.680><c> and</c><00:01:46.799><c> reused</c><00:01:47.159><c> on</c><00:01:47.310><c> other</c>

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can't be copied and reused on other
 

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can't be copied and reused on other
transactions<00:01:48.180><c> since</c><00:01:48.780><c> the</c><00:01:48.990><c> signatures</c><00:01:49.439><c> are</c>

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transactions since the signatures are
 

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transactions since the signatures are
unique<00:01:49.950><c> to</c><00:01:49.979><c> each</c><00:01:50.220><c> transaction</c>

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unique to each transaction
 

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unique to each transaction
so<00:01:53.410><c> these</c><00:01:53.560><c> signatures</c><00:01:54.040><c> keep</c><00:01:54.310><c> unauthorized</c>

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so these signatures keep unauthorized
 

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so these signatures keep unauthorized
transactions<00:01:55.750><c> from</c><00:01:55.990><c> changing</c><00:01:56.440><c> the</c><00:01:56.530><c> ledger</c>

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transactions from changing the ledger
 

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transactions from changing the ledger
but<00:01:57.160><c> who</c><00:01:57.310><c> exactly</c><00:01:57.520><c> is</c><00:01:58.030><c> checking</c><00:01:58.420><c> the</c>

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but who exactly is checking the
 

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but who exactly is checking the
signatures<00:01:58.660><c> and</c><00:01:59.260><c> overall</c><00:01:59.740><c> maintaining</c><00:02:00.310><c> the</c>

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signatures and overall maintaining the
 

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signatures and overall maintaining the
ledger<00:02:00.780><c> surprisingly</c><00:02:01.780><c> anyone</c><00:02:02.320><c> who</c><00:02:02.410><c> wants</c><00:02:02.680><c> to</c>

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ledger surprisingly anyone who wants to
 

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ledger surprisingly anyone who wants to
one<00:02:03.880><c> of</c><00:02:04.000><c> the</c><00:02:04.060><c> main</c><00:02:04.270><c> goals</c><00:02:04.540><c> of</c><00:02:04.690><c> Bitcoin</c><00:02:05.050><c> is</c><00:02:05.290><c> to</c>

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one of the main goals of Bitcoin is to
 

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one of the main goals of Bitcoin is to
provide<00:02:05.740><c> a</c><00:02:05.800><c> decentralized</c><00:02:06.700><c> system</c><00:02:06.820><c> meaning</c>

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provide a decentralized system meaning
 

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provide a decentralized system meaning
no<00:02:07.720><c> single</c><00:02:08.140><c> company</c><00:02:08.290><c> or</c><00:02:08.650><c> government</c><00:02:08.800><c> can</c>

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no single company or government can
 

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no single company or government can
control<00:02:09.640><c> it</c>

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control it
 

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control it
every<00:02:10.780><c> time</c><00:02:10.960><c> someone</c><00:02:11.200><c> sends</c><00:02:11.530><c> money</c><00:02:11.680><c> a</c>

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every time someone sends money a
 

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every time someone sends money a
transaction<00:02:12.520><c> message</c><00:02:12.670><c> is</c><00:02:13.000><c> passed</c><00:02:13.270><c> around</c><00:02:13.540><c> to</c>

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transaction message is passed around to
 

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transaction message is passed around to
all<00:02:13.870><c> the</c><00:02:14.020><c> people</c><00:02:14.290><c> who</c><00:02:14.410><c> want</c><00:02:14.560><c> to</c><00:02:14.650><c> help</c><00:02:14.800><c> maintain</c>

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all the people who want to help maintain
 

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all the people who want to help maintain
the<00:02:15.370><c> ledger</c><00:02:15.520><c> who</c><00:02:15.850><c> all</c><00:02:16.120><c> call</c><00:02:16.360><c> maintain</c><00:02:16.840><c> errs</c>

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the ledger who all call maintain errs
 

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the ledger who all call maintain errs
each<00:02:17.650><c> maintainer</c><00:02:18.130><c> keeps</c><00:02:18.430><c> a</c><00:02:18.520><c> personal</c><00:02:18.940><c> copy</c><00:02:19.150><c> of</c>

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each maintainer keeps a personal copy of
 

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each maintainer keeps a personal copy of
the<00:02:19.480><c> ledger</c><00:02:19.630><c> and</c><00:02:19.930><c> updates</c><00:02:20.380><c> it</c><00:02:20.530><c> whenever</c><00:02:20.710><c> they</c>

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the ledger and updates it whenever they
 

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the ledger and updates it whenever they
receive<00:02:21.310><c> a</c><00:02:21.340><c> new</c><00:02:21.610><c> transaction</c><00:02:22.060><c> with</c><00:02:22.480><c> a</c><00:02:22.510><c> valid</c>

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receive a new transaction with a valid
 

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receive a new transaction with a valid
signature<00:02:23.970><c> with</c><00:02:24.970><c> ledger</c><00:02:25.210><c> spread</c><00:02:25.630><c> all</c><00:02:25.780><c> over</c>

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signature with ledger spread all over
 

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signature with ledger spread all over
the<00:02:26.200><c> world</c><00:02:26.230><c> traffic</c><00:02:27.010><c> delays</c><00:02:27.280><c> and</c>

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the world traffic delays and
 

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the world traffic delays and
occasionally<00:02:28.120><c> fraud</c><00:02:28.390><c> can</c><00:02:28.750><c> lead</c><00:02:28.960><c> to</c>

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occasionally fraud can lead to
 

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occasionally fraud can lead to
differences<00:02:29.350><c> in</c><00:02:29.620><c> those</c><00:02:29.740><c> Ledger's</c><00:02:30.010><c> so</c><00:02:30.640><c> how</c>

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differences in those Ledger's so how
 

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differences in those Ledger's so how
does<00:02:30.820><c> the</c><00:02:31.030><c> world</c><00:02:31.180><c> decide</c><00:02:31.540><c> which</c><00:02:31.750><c> version</c><00:02:32.140><c> to</c>

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does the world decide which version to
 

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does the world decide which version to
use<00:02:32.550><c> like</c><00:02:33.550><c> in</c><00:02:33.670><c> other</c><00:02:33.790><c> democratic</c><00:02:34.360><c> systems</c>

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use like in other democratic systems
 

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use like in other democratic systems
there's<00:02:35.020><c> a</c><00:02:35.080><c> vote</c><00:02:35.290><c> but</c><00:02:35.740><c> it's</c><00:02:35.890><c> a</c><00:02:35.980><c> bit</c><00:02:36.130><c> different</c>

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there's a vote but it's a bit different
 

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there's a vote but it's a bit different
than<00:02:36.520><c> a</c><00:02:36.580><c> typical</c><00:02:36.820><c> ballot</c><00:02:37.330><c> system</c><00:02:37.620><c> maintainer</c>

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than a typical ballot system maintainer
 

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than a typical ballot system maintainer
z'<00:02:38.740><c> vote</c><00:02:39.010><c> by</c><00:02:39.340><c> trying</c><00:02:39.610><c> to</c><00:02:39.670><c> solve</c><00:02:39.850><c> a</c><00:02:40.030><c> special</c>

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z' vote by trying to solve a special
 

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z' vote by trying to solve a special
puzzle<00:02:40.780><c> based</c><00:02:40.990><c> on</c><00:02:41.230><c> their</c><00:02:41.470><c> version</c><00:02:41.680><c> of</c><00:02:41.920><c> the</c>

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puzzle based on their version of the
 

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puzzle based on their version of the
ledger

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ledger
 

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ledger
the<00:02:43.090><c> first</c><00:02:43.330><c> person</c><00:02:43.510><c> to</c><00:02:43.720><c> solve</c><00:02:43.930><c> a</c><00:02:44.080><c> puzzle</c>

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the first person to solve a puzzle
 

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the first person to solve a puzzle
announces<00:02:44.920><c> their</c><00:02:45.070><c> solution</c><00:02:45.490><c> and</c><00:02:45.670><c> everyone</c>

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announces their solution and everyone
 

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announces their solution and everyone
updates<00:02:46.480><c> to</c><00:02:46.660><c> that</c><00:02:46.810><c> version</c><00:02:47.130><c> so</c><00:02:48.130><c> the</c><00:02:48.250><c> vote</c>

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updates to that version so the vote
 

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updates to that version so the vote
turns<00:02:48.640><c> out</c><00:02:48.790><c> to</c><00:02:48.910><c> be</c><00:02:49.000><c> a</c><00:02:49.030><c> kind</c><00:02:49.240><c> of</c><00:02:49.300><c> mathematical</c>

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turns out to be a kind of mathematical
 

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turns out to be a kind of mathematical
race<00:02:50.080><c> but</c><00:02:50.740><c> it's</c><00:02:50.890><c> designed</c><00:02:51.220><c> to</c><00:02:51.370><c> favor</c><00:02:51.520><c> the</c>

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race but it's designed to favor the
 

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race but it's designed to favor the
majority's<00:02:52.180><c> version</c><00:02:52.570><c> this</c><00:02:53.140><c> is</c><00:02:53.320><c> because</c><00:02:53.590><c> the</c>

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majority's version this is because the
 

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majority's version this is because the
more<00:02:53.920><c> people</c><00:02:54.220><c> there</c><00:02:54.370><c> are</c><00:02:54.400><c> working</c><00:02:54.850><c> on</c><00:02:54.910><c> a</c>

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more people there are working on a
 

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more people there are working on a
particular<00:02:55.120><c> version</c><00:02:55.810><c> the</c><00:02:55.990><c> faster</c><00:02:56.350><c> it</c><00:02:56.470><c> will</c><00:02:56.590><c> be</c>

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particular version the faster it will be
 

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particular version the faster it will be
solved<00:02:57.150><c> because</c><00:02:58.150><c> new</c><00:02:58.300><c> transactions</c><00:02:58.870><c> are</c>

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solved because new transactions are
 

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solved because new transactions are
constantly<00:02:59.440><c> being</c><00:02:59.650><c> generated</c><00:03:00.250><c> this</c><00:03:00.489><c> voting</c>

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constantly being generated this voting
 

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constantly being generated this voting
process<00:03:01.180><c> repeats</c><00:03:01.540><c> over</c><00:03:01.690><c> and</c><00:03:01.870><c> over</c><00:03:02.170><c> again</c><00:03:02.290><c> so</c>

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process repeats over and over again so
 

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process repeats over and over again so
maintained<00:03:03.040><c> errs</c><00:03:03.160><c> can</c><00:03:03.400><c> continually</c><00:03:03.910><c> agree</c>

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maintained errs can continually agree
 

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maintained errs can continually agree
about<00:03:04.540><c> new</c><00:03:04.900><c> transactions</c>

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so<00:03:08.310><c> why</c><00:03:08.459><c> math</c><00:03:08.700><c> problems</c><00:03:09.150><c> instead</c><00:03:09.569><c> of</c><00:03:09.629><c> say</c>

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so why math problems instead of say
 

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so why math problems instead of say
emailing<00:03:10.470><c> in</c><00:03:10.650><c> votes</c><00:03:10.829><c> to</c><00:03:11.069><c> decide</c><00:03:11.220><c> on</c><00:03:11.459><c> a</c><00:03:11.489><c> ledger</c>

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emailing in votes to decide on a ledger
 

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emailing in votes to decide on a ledger
without<00:03:12.930><c> a</c><00:03:12.959><c> central</c><00:03:13.349><c> authority</c><00:03:13.470><c> to</c><00:03:14.010><c> register</c>

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without a central authority to register
 

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without a central authority to register
voters<00:03:14.640><c> it</c><00:03:15.000><c> would</c><00:03:15.209><c> be</c><00:03:15.299><c> hard</c><00:03:15.569><c> to</c><00:03:15.629><c> enforce</c><00:03:15.870><c> one</c>

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voters it would be hard to enforce one
 

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voters it would be hard to enforce one
vote<00:03:16.620><c> per</c><00:03:16.860><c> person</c><00:03:17.280><c> a</c><00:03:17.430><c> single</c><00:03:18.209><c> person</c><00:03:18.540><c> could</c>

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vote per person a single person could
 

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vote per person a single person could
create<00:03:19.019><c> multiple</c><00:03:19.439><c> accounts</c><00:03:19.980><c> to</c><00:03:20.129><c> vote</c><00:03:20.250><c> more</c>

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create multiple accounts to vote more
 

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create multiple accounts to vote more
than<00:03:20.489><c> once</c><00:03:20.610><c> or</c><00:03:21.180><c> even</c><00:03:21.239><c> millions</c><00:03:21.689><c> of</c><00:03:21.930><c> times</c><00:03:22.230><c> the</c>

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than once or even millions of times the
 

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than once or even millions of times the
math<00:03:23.370><c> problems</c><00:03:23.760><c> prevent</c><00:03:24.180><c> this</c><00:03:24.359><c> by</c><00:03:24.629><c> making</c>

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math problems prevent this by making
 

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math problems prevent this by making
each<00:03:25.049><c> vote</c><00:03:25.319><c> have</c><00:03:25.470><c> a</c><00:03:25.500><c> cost</c><00:03:25.829><c> in</c><00:03:26.189><c> computers</c><00:03:26.730><c> and</c>

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each vote have a cost in computers and
 

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each vote have a cost in computers and
electricity

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electricity
 

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electricity
this<00:03:28.319><c> means</c><00:03:28.560><c> out</c><00:03:28.739><c> voting</c><00:03:28.980><c> or</c><00:03:29.250><c> out</c><00:03:29.489><c> solving</c><00:03:30.030><c> the</c>

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this means out voting or out solving the
 

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this means out voting or out solving the
majority<00:03:30.629><c> to</c><00:03:30.840><c> take</c><00:03:30.989><c> over</c><00:03:31.109><c> the</c><00:03:31.290><c> ledger</c><00:03:31.500><c> would</c>

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majority to take over the ledger would
 

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majority to take over the ledger would
effectively<00:03:32.430><c> require</c><00:03:32.790><c> out</c><00:03:32.970><c> spending</c><00:03:33.540><c> the</c>

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effectively require out spending the
 

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effectively require out spending the
majority<00:03:33.810><c> an</c><00:03:34.290><c> unlikely</c><00:03:34.950><c> event</c><00:03:35.450><c> so</c><00:03:36.450><c> the</c><00:03:36.569><c> math</c>

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majority an unlikely event so the math
 

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majority an unlikely event so the math
enables<00:03:37.170><c> a</c><00:03:37.260><c> fair</c><00:03:37.500><c> vote</c><00:03:37.739><c> in</c><00:03:37.890><c> a</c><00:03:38.040><c> decentralized</c>

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enables a fair vote in a decentralized
 

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enables a fair vote in a decentralized
system<00:03:39.000><c> to</c><00:03:39.930><c> more</c><00:03:40.079><c> important</c><00:03:40.470><c> details</c><00:03:40.799><c> about</c>

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system to more important details about
 

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system to more important details about
how<00:03:41.310><c> it</c><00:03:41.519><c> does</c><00:03:41.700><c> this</c><00:03:42.620><c> to</c><00:03:43.620><c> prevent</c><00:03:43.920><c> someone</c><00:03:44.129><c> from</c>

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how it does this to prevent someone from
 

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how it does this to prevent someone from
pre<00:03:44.639><c> solving</c><00:03:45.030><c> a</c><00:03:45.090><c> puzzle</c><00:03:45.269><c> to</c><00:03:45.629><c> win</c><00:03:45.780><c> the</c><00:03:45.930><c> race</c>

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pre solving a puzzle to win the race
 

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pre solving a puzzle to win the race
each<00:03:46.440><c> puzzle</c><00:03:46.799><c> builds</c><00:03:47.159><c> on</c><00:03:47.250><c> previous</c><00:03:47.459><c> answers</c>

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each puzzle builds on previous answers
 

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each puzzle builds on previous answers
and<00:03:48.359><c> the</c><00:03:48.510><c> winner</c><00:03:48.659><c> is</c><00:03:48.840><c> not</c><00:03:49.019><c> just</c><00:03:49.290><c> the</c><00:03:49.409><c> most</c>

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and the winner is not just the most
 

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and the winner is not just the most
recent<00:03:49.859><c> solution</c><00:03:50.519><c> but</c><00:03:50.760><c> the</c><00:03:50.879><c> ledger</c><00:03:51.060><c> version</c>

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recent solution but the ledger version
 

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recent solution but the ledger version
with<00:03:51.599><c> the</c><00:03:51.690><c> most</c><00:03:51.870><c> total</c><00:03:52.290><c> solutions</c><00:03:53.989><c> the</c>

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with the most total solutions the
 

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with the most total solutions the
puzzles<00:03:55.349><c> are</c><00:03:55.439><c> also</c><00:03:55.590><c> extraordinarily</c><00:03:56.159><c> special</c>

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puzzles are also extraordinarily special
 

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puzzles are also extraordinarily special
in<00:03:57.150><c> that</c><00:03:57.359><c> there</c><00:03:57.510><c> are</c><00:03:57.569><c> no</c><00:03:57.689><c> tricks</c><00:03:58.019><c> to</c><00:03:58.230><c> solving</c>

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in that there are no tricks to solving
 

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in that there are no tricks to solving
them<00:03:58.680><c> faster</c><00:03:59.099><c> other</c><00:03:59.370><c> than</c><00:03:59.639><c> by</c><00:03:59.790><c> buying</c><00:04:00.030><c> more</c>

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them faster other than by buying more
 

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them faster other than by buying more
computers<00:04:00.689><c> and</c><00:04:00.930><c> electricity</c><00:04:01.290><c> it's</c><00:04:02.189><c> this</c>

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computers and electricity it's this
 

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computers and electricity it's this
property<00:04:02.879><c> that</c><00:04:02.909><c> underlies</c><00:04:03.389><c> the</c><00:04:03.420><c> entire</c>

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property that underlies the entire
 

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property that underlies the entire
system<00:04:04.439><c> and</c><00:04:04.650><c> gives</c><00:04:04.950><c> people</c><00:04:05.159><c> assurance</c><00:04:05.700><c> that</c>

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system and gives people assurance that
 

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system and gives people assurance that
the<00:04:06.000><c> solutions</c><00:04:06.420><c> are</c><00:04:06.540><c> truly</c><00:04:06.900><c> from</c><00:04:07.109><c> the</c>

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the solutions are truly from the
 

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the solutions are truly from the
majority<00:04:07.500><c> and</c><00:04:07.799><c> not</c><00:04:08.069><c> a</c><00:04:08.250><c> clever</c><00:04:08.489><c> attacker</c><00:04:08.879><c> a</c>

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majority and not a clever attacker a
 

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majority and not a clever attacker a
final<00:04:10.980><c> note</c><00:04:11.129><c> about</c><00:04:11.430><c> how</c><00:04:11.669><c> money</c><00:04:11.910><c> is</c><00:04:12.030><c> created</c>

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final note about how money is created
 

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final note about how money is created
every<00:04:13.470><c> time</c><00:04:13.650><c> a</c><00:04:13.680><c> puzzle</c><00:04:14.069><c> is</c><00:04:14.190><c> solved</c><00:04:14.579><c> a</c><00:04:14.730><c> small</c>

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every time a puzzle is solved a small
 

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every time a puzzle is solved a small
award<00:04:15.419><c> is</c><00:04:15.540><c> added</c><00:04:15.810><c> to</c><00:04:15.870><c> the</c><00:04:15.989><c> solvers</c><00:04:16.320><c> balance</c>

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award is added to the solvers balance
 

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award is added to the solvers balance
effectively<00:04:17.370><c> creating</c><00:04:17.760><c> money</c><00:04:17.910><c> out</c><00:04:18.030><c> of</c><00:04:18.150><c> thin</c>

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effectively creating money out of thin
 

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effectively creating money out of thin
air<00:04:18.500><c> this</c><00:04:19.500><c> award</c><00:04:19.859><c> acts</c><00:04:20.070><c> as</c><00:04:20.220><c> an</c><00:04:20.370><c> incentive</c><00:04:20.669><c> for</c>

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air this award acts as an incentive for
 

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air this award acts as an incentive for
people<00:04:21.150><c> to</c><00:04:21.299><c> help</c><00:04:21.599><c> maintain</c><00:04:21.780><c> the</c><00:04:22.109><c> ledger</c><00:04:22.260><c> and</c>

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people to help maintain the ledger and
 

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people to help maintain the ledger and
is<00:04:22.889><c> in</c><00:04:23.070><c> addition</c><00:04:23.490><c> to</c><00:04:23.610><c> small</c><00:04:23.820><c> fees</c><00:04:24.090><c> centers</c>

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is in addition to small fees centers
 

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is in addition to small fees centers
attached<00:04:24.840><c> to</c><00:04:25.080><c> transactions</c><00:04:25.909><c> because</c>

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attached to transactions because
 

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attached to transactions because
maintainer<00:04:27.570><c> zhh</c><00:04:27.690><c> acquire</c><00:04:28.020><c> newly</c><00:04:28.440><c> created</c>

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maintainer zhh acquire newly created
 

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maintainer zhh acquire newly created
money<00:04:29.010><c> through</c><00:04:29.400><c> computation</c><00:04:30.060><c> they</c><00:04:30.360><c> are</c>

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money through computation they are
 

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money through computation they are
typically<00:04:30.870><c> called</c><00:04:31.080><c> miners</c><00:04:31.530><c> but</c><00:04:32.039><c> their</c><00:04:32.159><c> main</c>

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typically called miners but their main
 

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typically called miners but their main
purpose<00:04:32.699><c> is</c><00:04:32.820><c> really</c><00:04:32.970><c> to</c><00:04:33.120><c> manage</c><00:04:33.539><c> the</c><00:04:33.750><c> ledger</c>

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purpose is really to manage the ledger
 

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purpose is really to manage the ledger
not<00:04:34.500><c> to</c><00:04:34.650><c> create</c><00:04:34.919><c> money</c><00:04:35.099><c> the</c><00:04:35.940><c> voting</c><00:04:36.180><c> system</c>

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not to create money the voting system
 

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not to create money the voting system
simply<00:04:36.840><c> provides</c><00:04:37.199><c> a</c><00:04:37.349><c> convenient</c><00:04:37.710><c> way</c><00:04:37.889><c> to</c>

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simply provides a convenient way to
 

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simply provides a convenient way to
randomly<00:04:38.610><c> distribute</c><00:04:39.090><c> money</c><00:04:39.240><c> into</c><00:04:39.570><c> the</c><00:04:39.659><c> world</c>

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randomly distribute money into the world
 

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randomly distribute money into the world
and<00:04:40.169><c> in</c><00:04:40.800><c> fact</c><00:04:41.010><c> after</c><00:04:41.310><c> 21:40</c><00:04:42.270><c> no</c><00:04:42.570><c> more</c><00:04:42.750><c> money</c>

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and in fact after 21:40 no more money
 

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and in fact after 21:40 no more money
will<00:04:43.139><c> be</c><00:04:43.260><c> created</c>

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will be created
 

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will be created
in<00:04:45.770><c> summary</c><00:04:46.770><c> bitcoin</c><00:04:47.189><c> is</c><00:04:47.340><c> an</c><00:04:47.490><c> electronic</c>

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in summary bitcoin is an electronic
 

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in summary bitcoin is an electronic
currency<00:04:48.479><c> that's</c><00:04:48.689><c> based</c><00:04:48.960><c> on</c><00:04:49.080><c> a</c>

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currency that's based on a
 

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currency that's based on a
collaboratively<00:04:49.889><c> maintained</c><00:04:50.460><c> ledger</c><00:04:50.870><c> people</c>

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collaboratively maintained ledger people
 

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collaboratively maintained ledger people
transfer<00:04:52.229><c> money</c><00:04:52.439><c> by</c><00:04:52.680><c> sending</c><00:04:52.979><c> messages</c><00:04:53.400><c> to</c>

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transfer money by sending messages to
 

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transfer money by sending messages to
maintain<00:04:54.000><c> errs</c><00:04:54.150><c> describing</c><00:04:54.719><c> where</c><00:04:54.960><c> and</c><00:04:55.259><c> how</c>

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maintain errs describing where and how
 

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maintain errs describing where and how
much<00:04:55.620><c> money</c><00:04:55.770><c> should</c><00:04:55.949><c> move</c><00:04:56.280><c> maintainer</c><00:04:57.090><c> x'</c>

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much money should move maintainer x'
 

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much money should move maintainer x'
make<00:04:57.389><c> sure</c><00:04:57.599><c> that</c><00:04:57.810><c> the</c><00:04:57.930><c> messages</c><00:04:58.319><c> are</c><00:04:58.469><c> from</c><00:04:58.560><c> the</c>

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make sure that the messages are from the
 

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make sure that the messages are from the
true<00:04:59.009><c> account</c><00:04:59.430><c> owners</c><00:04:59.759><c> by</c><00:04:59.939><c> checking</c><00:05:00.210><c> digital</c>

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true account owners by checking digital
 

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true account owners by checking digital
signatures<00:05:01.199><c> and</c><00:05:01.280><c> finally</c><00:05:02.280><c> the</c><00:05:02.460><c> maintainer</c><00:05:02.789><c> is</c>

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signatures and finally the maintainer is
 

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signatures and finally the maintainer is
reached<00:05:03.120><c> consensus</c><00:05:03.780><c> with</c><00:05:03.960><c> each</c><00:05:04.080><c> other</c>

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reached consensus with each other
 

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reached consensus with each other
through<00:05:04.620><c> a</c><00:05:04.650><c> math</c><00:05:04.919><c> based</c><00:05:05.250><c> voting</c><00:05:05.669><c> process</c>

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I<00:05:08.220><c> hope</c><00:05:08.400><c> this</c><00:05:08.550><c> gives</c><00:05:08.730><c> you</c><00:05:08.820><c> a</c><00:05:08.880><c> quick</c><00:05:09.030><c> sense</c><00:05:09.360><c> for</c>

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I hope this gives you a quick sense for
 

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I hope this gives you a quick sense for
how<00:05:09.660><c> Bitcoin</c><00:05:09.900><c> works</c><00:05:10.080><c> if</c><00:05:10.530><c> you'd</c><00:05:11.190><c> like</c><00:05:11.310><c> to</c><00:05:11.490><c> dive</c>

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how Bitcoin works if you'd like to dive
 

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how Bitcoin works if you'd like to dive
deeper<00:05:11.970><c> into</c><00:05:12.000><c> the</c><00:05:12.270><c> rabbit</c><00:05:12.360><c> hole</c><00:05:12.720><c> check</c><00:05:13.050><c> out</c><00:05:13.170><c> my</c>

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deeper into the rabbit hole check out my
 

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deeper into the rabbit hole check out my
22<00:05:13.740><c> minute</c><00:05:14.010><c> video</c><00:05:14.220><c> how</c><00:05:14.580><c> Bitcoin</c><00:05:14.850><c> works</c><00:05:15.180><c> under</c>

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22 minute video how Bitcoin works under
 

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22 minute video how Bitcoin works under
the<00:05:15.570><c> hood</c><00:05:15.660><c> also</c><00:05:16.500><c> feel</c><00:05:16.950><c> free</c><00:05:16.980><c> to</c><00:05:17.190><c> subscribe</c><00:05:17.310><c> for</c>

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the hood also feel free to subscribe for
 

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the hood also feel free to subscribe for
more<00:05:18.090><c> concise</c><00:05:18.540><c> tech</c><00:05:18.810><c> explanations</c>