BITCOIN FOR BEGINNERS

2 years ago

The growing popularity of cryptocurrencies has aroused mainstream interest in blockchain technologies and their possibilities. Increasingly, blockchain is used as a generic term that most people associate with Bitcoin, the cryptocurrency created using the technology. The potential and scope of the application of decentralized protocols have already become so much broader.

The Bitcoin blockchain is a global distributed ledger consisting of data blocks sequentially linked in a chain. Each block contains information about the preceding block. The data of blocks is copied and stored on different Bitcoin mining nodes without being bound to one specific server, making the substitution of records impossible.

A permanently locked set of rules or “Protocols” governs the flow of data through the distributed network of nodes.

The Birth of Bitcoin

On October 31st, 2008, Dr. Craig S. Wright, using the pseudonym Satoshi Nakomoto, released the whitepaper titled Bitcoin: A Peer to Peer Electronic Cash System. This paper introduced the first widely adopted use case for blockchain’s innovative protocols to the world. As mentioned before, Bitcoin is but one element of blockchain, i.e., blockchain is to Bitcoin, what the internet is to email.

Anyone who understands the basics of programming can create an application on top of the Bitcoin blockchain.

Novelty & Advantages

In centralized systems, there exists a single entity, like a ruler, who has overriding control over all matters on the platform. If the ruler is manipulated or corrupted, there is little recourse other than leaving that platform entirely.

The Bitcoin Blockchain is distributed and maintained by multiple interconnected parties, so participants in the network do not need to trust just one person or company to have an accurate copy of the ledger. The framework is permanent and driven by a consensus mechanism so that there is no single source for making decisions. The Bitcoin Blockchain was designed to scale to hold high volumes of payment transactions and other forms of data to support enterprise applications.

The Bitcoin Blockchain’s unique characteristics stem from merging cryptography and transparency within a distributed technological framework. Bitcoin transactions between two parties occur within a global peer-to-peer network without needing to rely on third-party authentication.

Blockchain technology tackles the problem of digital trust by securely recording important information in a public space. Data stored on the blockchain exists in a shared and continually reconciled state. Data is decentralized, can be encrypted, and timestamped. Data cannot be tampered with or changed... Readmore

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