The blockchain explained with NYC Subway cars

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Bitcoin was conceptualized by an anonymous person or group that identified themselves as Satoshi Nakamoto. Part of the myth around Bitcoin is that we still don’t know who this person is, and that makes it cooler.
Anyway, he, she, they… essentially brought together a bunch of concepts, technologies- such as cryptography… and wrote a white paper that was published in 2009. This was the middle of the real estate market crash, so it inevitably rode a wave of mistrust in the banking system.
So in this whitepaper, this proposed cryptocurrency offered theoretical solutions for many problems with centralized banking. The fees to send money or accept payments, the trust problem with banks, even the Central banks ability to print new money based on political decisions.
So Bitcoin, as a currency that can be used to pay for things… is built on top of a blockchain. And the blockchain is in essence a ledger, just like the one banks keep.
We are going to use the Bitcoin example because it was the first successful implementation of a blockchain, and because it was the cryptocurrency that sparked everything.
The Bitcoin ledger, again, that document that keeps track of every single transaction… doesn’t depend on a single entity, or server, or book: it’s rather- distributed. It was designed as a way to have multiple computers working together, each one of them with a stored copy of the ledger, and with a creative and super secure system to ensure that none of them can tamper with the data.
So this ledger is not just a list of transactions… instead, it’s divided into blocks, which was a clever way Satoshi figured out to allow this to work. Each block contains a batch transactions.
Whenever you send money to someone using the blockchain, what you are essentially doing is adding an entry to the ledger saying that a certain value moved from one account to the other.
In traditional banking, the bank itself is the only entity that can add an entry to the ledger, THEIR ledger; but in a blockchain, anyone can do it, thus making it free… and the technology uses an incredible system to be extremely secure and make sure all transactions are real.
So In a blockchain transactions are grouped into blocks. On Bitcoin specifically, each block is about 1MB in size, which means that it can store about 2,400 transactions.
A transaction is again, a log or a record saying a certain amount of value moved from one account, to the other. Just like with your credit card transactions, in order for a transaction to be valid, the origin account needs to have enough funds, and the record needs to be signed by the owner of the account to verify it’s real.
01:28 Blockchain Explained - Understanding Ledgers
02:31 Blockchain Explained - Updating your bank's ledger
04:52 Blockchain Explained - Satoshi and the Bitcoin Origins
07:45 Blockchain Explained - Logging transactions
08:53 Blockchain Explained - Proof of Work
12:08 Blockchain Explained - Mining
17:17 Blockchain Explained - Problems and Scalability
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[@fraollemecha]

You did it again Everybody involved in the making of this video did a wonderful job. Thank you

[@slidebean]

The team really killed it with this one 💪

[@chidi8415]

@@slidebean please cover NFT 's next. I can't seem to understand why someone would pay millions for an online picture that anyone can download for free. Smart contract is pretty easy to understand. Thanks

[@NebJah]

You should definitly cover smart contracts next. DeFi is here to stay.

[@PXAbstraction]

This comment aged like milk.

[@NebJah]

@@PXAbstraction did it? Lol plenty of DeFi apps still running strong. Tell me you didn’t get any airdrops without telling me you didn’t get any airdrops. Cope harder.

[@9sric]

Did he ever create a video for Smart Contracts??

[@alexmatete5709]

You should add a "Supper Thanks" button.. The last time I saw this good of content and presentation was when John Heilemann did "Download: The True Story of the Internet"... I still get chill of inspiration when I look at it. Y'all great inspiration!

[@Trevormy]

Caya is my favorite CEO in the globe. You share out your relevant experiences, both successful and challenging. And the free education...priceless. I think I know and understand more in depth than i normally would, delving into self-training on the topics you choose to air. Keep it up

[@sjiz]

This man is killing it with every new video. The script, presentation ... simply amazing!

[@paulbrosnan4339]

Great video mate, I always had trouble explaining this to others and could never find a video to explain to non-crypto enthusiasts. I'm going to send this video to my brother and if he understands it, it will be the ultimate testament as to the thoroughness of the explanation. Best regards - PB

[@slidebean]

Glad you liked it! Let us know what your brother thinks after he has watched it.

[@thenewone4812]

Did he understand?

[@abrahamkibret1053]

Dude we're waiting to find out

[@sidehustletips]

Watched hundreds of videos and none is better than this on explaining Blockchain. Newfound appreciation for Blockchain after watching this. Thank you so much for being excellent!

[@micahgivens892]

10:35 technically that’s incorrect. Not all 256 would be different. Rather it’s 50%(statically) of the “digits” are different each time an input is changed whether it’s slightly or drastically. This is just for anyone who wanted to know, not tryna be that guy. This video is awesome!

[@pixxelwizzard]

Technically, it's correct. It's like flipping a coin 256 times and recording the results. Then you reflip the coin another 256 times and record a completely different set of results. Since only two results are possible you'll get an average of 50% remaining the same, but the coin was definitely reflipped and the results were new.

[@ArkaneConstruct]

Another amazing video with outstanding production, and a much more palatable breakdown of Blockchain. Good to see you in NYC. Would definitely vote for smart contracts before NFT

[@trcherrera]

After so long I, a healthcare professional that struggles to understand IT concepts, finally understood what bitcoin is and how it came to be in a simplified and sensible way. Thank you!

[@gaddaitherage8204]

I have to rewatch this video for my simple mind to process it. Up until 8minutes in I was like ok, got it, great, ok. Mid way through I was like 😕???!!!

[@jackiedelvalle]

Same. I'll have to watch it multiple times. I think the people who are congratulating it probably understood Bitcoin but could explain it easily, so they're saying this is an excellent way to explain something they already understand. We, though, are a few steps behind that: we DON'T understand Bitcoin/Blockchain, but are trying to through this video.

[@RodrigoFar14]

He: "This shit is not easy to understand" Me: Oh, it must have taken a REALLY long He: "Took me hours!!"

[@willkrummeck]

linked list

[@cayahere]

If this video doesn't blow up, I'm quitting KZbin.

[@nathanstark4504]

hahaha I'm pretty sure it will

[@aeatvghana2767]

sure it will..

[@slidebean]

Don't quit 🥺

[@shaigoel2304]

Love you content!

[@DekuStickGamer]

With that clickbait title, you bet it is.

[@PXAbstraction]

Satoshi Nakamoto is Adam Back.

[@Positivevibes1973BR]

First time viewer. Excellent job in delivery and content.. Just subscribed. Thx

[@omnipotentcoder9401]

Caya , big fan of you, I am going to say this again , your episodes are better than entire Netflix , prime Videos. Imagine if he got fund like them !!

[@Aidan_Au]

Glad to see Caya hanging out in NYC, just to see how the other coast live

[@AlexandroAnaya]

Wonderful video! Excited to see more on this topic, especially regarding smart contracts. Keep up the good work

[@amuedore8968]

Weldone slidebean team for all you do

[@IAmPattycakes]

Smart contracts are definitely a part of the future. I'd love to see your take in it.

[@BitcoinMotorist]

Smart contracts are not new. Vending machines are smart contracts

[@cabhinavsharma5470]

I loved this Caya. I was just thinking that I should comment at the end of the video that y'all should do a video on smart contracts & I'm glad you mentioned that you are working on one. Also, It'd be great if y'all did one on DeFi, Eth 1st gen, and Eth 2nd gen. I love what y'all have going. Keep at it! :D

[@DodZz666]

Very Good introductory video for people new to the space

[@TwistedTriggerEnduro]

Brilliant "click bait" type title explaining the whole situation. Thank you for being so brilliant and making an amazing video to teach the world. Keep being awesome!

[@elyeparata864]

Covering smart contracts would be fantastic also. Great video

[@ANAKCreates]

These videos are so damn good, you guys have really upped your game (and continue to!) it’s great! Very informative! Would love to see the video on Smart Contracts!

[@muratuser2301]

You should have also mentioned Lightning Network as it's aims to solve scalability problem of the Bitcoin

[@karlruelan3138]

THE MOST SIMPLIEST YET INFORMATIVE VIDEO ABOUT BLOCKCHAIN. I LEARNED A LOT!

[@alirashidy]

I was waiting for this one since you announced it, and It exceeded my expectations! GREAT job as always to the whole team. Can't wait for the smart contracts video!

[@joostkoch7229]

i searched a long time for an explanation of the ecdsa system explained after some time i finally found someone with 200 view in 480p who explained it it is like a lot of people make videos about the principle (easy) but not how it really works under the hood

[@morkovija]

To anyne wondering: fantastic bit of music that plas at the outro is Cold Summer by Tom Fox

[@slipperyking]

The timing of that train in the beginning of the video was perfection. Great video!

[@itsjohnthomas]

Wow, this is the best Bitcoin blockchain explanation that was really helpful 👏

[@angieperez3864]

Caya I have been following you guys since you started but hadn't seen one of your videos in a few months (sorry!) But I must say Your ACCENT has really changed! Your english pronounciation is getting really good!

[@timlec2688]

Can you make a video about the Bitcoin Lightning Network please!? As I understand, Bitcoin's flaws are already solved.

[@reecebrauer7289]

When is the next company forensics? Miss that series

[@nickdoy]

Great video. Interested in videos for both smart contracts and NFTs. I'll wait patiently!

[@westally4120]

I love your videos. Please do another detailed video on any of the Top10 cryptocurrency

[@chrismanikkam6444]

Perfect Explanation. I finally understand. Bless you brother 🙏

[@therealthinker9464]

Could you add Manual closed captions? Could be really helpful, super underrated I have problems with hearing :)

[@gilangignasraharjo6138]

Very cool as usual! great job

[@slidebean]

Thank you! Cheers!

[@ZukunftBilden]

Smart Contracts is SUPER interesting to learn more about. Thanks for the great video.

[@manoemano22]

Yes! Please make a video on the 2008 meltdown!

[@p_louis]

"Once half the computers in the network adopt it....then this block is considered confirmed." I'm not sure about that. Instead of looking at it as a pass/fail boolean kind of situation, it's more about "how many confirmations do you have?" The more blocks created that follow your block, the more confirmations you have and the higher confidence you can have that your block is going to stay put.

[@p_louis]

But thank you for explaining blockchains to more and more people. :thumbs-up:

[@ribe3434]

Crypto is volatile because is new and has a lot people in the fiat world very nervous fighting back. Think of it when the internet started, it was a mess and many people thought it was just a trend. Crypto is not goin away, is here to stay.

[@leobuscaglia5576]

Bitcoin is here to stay because it is a gamble that is backed by the fiat currencies, just like the stock market. It will make some people very rich and some very poor just like the stock market. The fact that it has no fixed unique value of it's own makes it bound to the fiat currencies, at least for the foreseeable future, so right now it is just another hyped up stock that people are lining up to buy. Because of this dependency on the fiat currencies it remains highly volatile and certainly is not free of inflation as it claims to be.

[@Alvin-eq5rc]

Thank you. Very easy to understand

[@vhutemas]

If you’re gonna do a video about the 2008 crash, you should focus on its influence specifically on tech and the valley

[@abesapien9930]

Exceptionally well done. I also watched the same explanation video you briefly showed, but yours is the superior one. (Although I appreciate the other person's hard work too). This is truly starting to make sense now, and I feel I could explain blockchain to a stranger in 3 minutes if I had to. Thorough explanation videos on blockchain are few and far between, so yours might be watched for ages to come. :)

[@jitendrasuvarna5007]

I have seen big short and understood it but I want to see your version of the story .. would be great if guys can do that ... Awesome video by the way .. keep up the great work 👍

[@danieljuhasz-papp3278]

This chanel is going to be huge one day. I just want to say that I was here from the beginning.

[@Michael_H_Nielsen]

This was amazingly good. I finally feel like I understand :)

[@berbatovfan27]

I for one would love to see a video on the '08 crisis. You should def do it esp. since I cant seem to understand it

[@vincenttjia]

04:00 Love that reference to fractional reserve banking and how our economy is basically based on debt

[@2Brian]

I now have a much better understanding of the Blockchain and Bitcoin than before. Thank you!

[@slidebean]

Welcome!

[@henke37]

It's actually only about half of the bits that change in the output of the hash as the input changes. Otherwise you'd just end flipflopping between two states.

[@valentine1925]

I love the explanation. Thank you! and please do the big short :)

[@officialrapprod]

great vid 💯

[@bradcenters6136]

NebJah 1 week ago You should definitly cover smart contracts next. DeFi is here to stay.

[@TheFluffyFix]

Awesome! Thank you :)

[@tmchan]

Amazing video. Please also include explaination on proof of stake in your next videos on blockchain.

[@richardlarsson2268]

Great content, as usual! 🥳

[@rajhawaldar]

Great Video! Keep up the good work. Subscribed for more videos like this!

[@sayweb]

excellent, I admire you capability of explaining.

[@SuppaCyan]

Thanks Caya, I would like you to cover the Smart contract please.

[@irrevenant3]

This is a very helpful video, thank you. As far as I can see it has *zero* to do with subway trains. xD

[@zproject5230]

Looks like you’re experimenting with titles and thumbnails, which is very confusing and I’m not sure if changing the title as well would do much good to ranking on a keyword If I’m voting, then the first title and the first train blocks were the best Your videos are on a crazy high level, if you’d do a course on ANYTHING I’ll be the first to buy!

[@angelfishgod]

Stellar video!

[@jecabreradc]

Looking forward to your NFT video. This is very helpful to explain to others.Thanks.

[@nights5956]

Amazing job mate ! Would love to see a big short Theses

[@andresguti3rr3z]

Thanks so much Caya and team! First time I experienced a "cristal clear" explanation about blockchain and its effects.

[@agustinkrupka]

Hesus chirst! Thinking that Bitcoin’s energy use is a problem is the first sign that you only looked at the tech, and nothing else. Also, comparing BTC with Visa also shows how little you know. One should compare BTC to Fed Wire, ACH or SEPA, not with Visa, compare Visa with Lightning network.

[@derek.seaborn]

Finally, someone in this thread that sees through the nonsense that is this video.

[@pablolostum]

Overall, good documentary. But you were wrong in addressing the "price volatility" supposed problem of Bitcoin. That's not a Bitcoin's problem. As you mentioned earlier, the supply of Bitcoin is static and won't change. The intention of Bitcoin is to stop inflation since, unlike fiat currency, no more Bitcoin can be "printed". To put things into perspective: in a hypothetical world where everybody used Bitcoin, if something cost 1 Bitcoin, it would cost 1 Bitcoin since inflation doesn't exist - unlike in fiat, where inflation happens continuously. The price "volatility" when you buy Bitcoin is just how much worth is your fiat currency, and Bitcoin is experimenting deflation ever since it was created.

[@adrianmaloney4962]

Please do a video, on the underlying technology Blockchain and how it has an effect on financial services.

[@kaveh_m_beigi]

Thanks again for another great video. I will be sharing this with many friends who struggle to understand the blockchain. My vote for the next one is Blockchain powered Social Tokens.

[@slidebean]

I hope that your friends enjoy it and get some value out of it!

[@feandil666]

One thing I don't understand with BitCoin: once they've all been mined, and the quantity never changes, there will be no more incentive for anyone to "mine" bitcoins. So transactions won't be processed and bitcoin will be unusable. What am I missing?

[@gergelyhegedus8714]

transaction fees

[@piyushella]

Computer scientists trying not to freak out when Caya talks about SHA-256.

[@kennybronx2149]

Waaw every day you keep on improving congrats caya

[@Dxeus]

Love your videos.

[@ZubairKhan-up5wf]

Excellent explanations 👏👍

[@slidebean]

Glad it was helpful!

[@AkbarNurPribadi]

If people decide to stop mining, does it mean no one would update the ledger anymore?

[@ericvilla1]

this is very very very very this is extremely quite very amazingly well done

[@slidebean]

Thank you 🥺

[@loveBROGaming]

Wow, the thumbnail change actually got me to click. I’m surprised with myself but glad to be here 😅 but simultaneously disappointed in myself 😂😂

[@AstonishedByTheLackOfCake]

smart contracts next please, afaik nfts are fairly boring and simply stores an additional hash of se digital media on the blockchain itself, but smart contracts actually seems like a more nuanced and interesting topic to cover

[@williamyates5863]

This is such a good video and a great explanation -- and I still have no idea how bitcoin works.

[@dreamphantltd]

great video, please do smart contracts next

[@ujeshnada7281]

Best videos on block chain so far...

[@slidebean]

Thank you!

[@pedroapfilho]

To explain NFTs, you should first explain Smart Contracts, as they are kinda linked.

[@fernandomaximoferreira1067]

Please, cover the smart contracts next.

[@ALCRAN2010]

Math teachers were on to something when they required you show your work

[@reelenz]

I’m super critical of Bitcoin/Blockchain videos as it’s extremely rare to get them done well without misinformation. Overall really good job here. Only adjustment I’d say is Bitcoin mining is still easily profitable in the US. Also, while the video isn’t about Bitcoin, maybe a mention of the transaction limitation issue has been solved by something Satoshi himself wrote about the network eventually needing - Off chain/2nd layer scaling. This is the lightning network. Thanks for the work you put into this.

[@geordonworley5618]

The Lightning network doesn't necessarily solve this issue. The way that Lightning "solves" the issue is by centeralizing payment processing, which defeats the purpose of a distributed ledger. Basically, you need a large entity (with a lot of bitcoin) to process the payments with lightning, and then at some point they must still make a final transaction to Bitcoin to resolve the transactions at some point in the future, and therefore it is not trustless like the bitcoin blockchain itself, nor is it distributed.

[@sulczgabor]

Thanks Caya, supercool video, finally I got some idea WTF is butcoin actually :D

[@TimothyWhiteheadzm]

At one point you said that adding a transaction to the ledger was free. This is of course not true. Someone has to pay for all the servers, mining etc. The money comes partly from inflation which is caused by mining which in turn costs anyone doing transactions. The rest of the money comes from those 'investing' in bitcoin as a store of value. But transactions are certainly NOT free. Someone is paying.

[@todormarkovic1793]

Do a video on the Samwer brothers, please!!

[@MrHaniakari]

How do you guys consistently find the perfect sound track to go along with your videos?

[@pratyushkongalla8928]

Watch Veritasium's video on clickbait, you may benefit.

[@soneryusifov5529]

yeah i just watched agree.

[@YacoubSabatin]

Just thought of the same thing, good job Caya though, love SlideBean.

[@null4296]

Hi, just curious, which NYC neighborhood did you film the warehouse?

[@slidebean]

East Williamsburg

[@sprocketus]

nice one thanks. Make the smart contract first pls ^^

[@vanshpachori8396]

Thanks a lot for this video we all want a video Ethereum and it's smart contact

[@Pining_for_the_fjords]

Another problem that nobody seems to talk about is the ever-growing size of the blockchain itself. If every new transaction is added to the blockchain, and nothing is ever removed from it, it will grow arbitrarily big over time, so fewer and fewer computers will be able to store it and process it. If bitcoin (or any cryptocurrency using the same technology) were to truly gain mass adoption, would the size of the blockchain not become a ticking timebomb? Are we just betting that we will just keep making computers with ever increasing storage and processing capacity indefinitely? Otherwise we will need a system to limit the size of the blockchain. Or is there something I am failing to understand, which means that this isn't an issue?

[@chupamelasbolasregem]

it's really not a problem, bitcoin as example has a 360GB on size as today, if we stop at the current common interprice HDD size of 20TB we will be fine for an 285years more

[@Pining_for_the_fjords]

@@chupamelasbolasregem Is that with bitcoin's current rate of use? What about if people were to try to use it as a main currency?

[@chupamelasbolasregem]

@@Pining_for_the_fjords I think bitcion pass waylong the daily use as a currency now that kinda of use is handle by altcoins like litecoin, DOGEcoin, is mostlike ppl will store large amount of money on bitcoin then a samll fraction on altcoin for day to day use

[@johnwest3518]

So...do I buy it? Or, do I wait for another correction?

[@giova6824]

Instead of the 2008 you guys should do the 1929 crash it’d be awesome!