There are tons of explanations about the main idea of Bitcoin, blockchain and the digital technologies as a whole. It might be puzzling at the very first sight, but knowledge in any subject requires time, patience and desire. The Bitcoin blockchain in its simplest form is a database or ledger containing transaction records of the Bitcoin cryptocurrency. This database is distributed across a peer-to-peer network and has no central authority. That’s why network participants have to agree on the validity of Bitcoin transactions before they can be completed.
Understanding Bitcoin blockchain
Blockchain is a specific type of database. The main specifics of blockchain is the way it stores information. It is stored in blocks that are chained together. Blockchain is used for different types of information, but we are used to associating it with cryptocurrencies. It is most commonly used as a ledger for transactions. Bitcoin blockchain is a decentralized way to make transactions. There is no single person to control the system, all users involved maintain control. Bitcoin blockchain is invariable. In other words, the data entered can’t be changed. Bitcoin transactions are recorded and accessible to anyone.
Bitcoin mining
Bitcoins are released into circulation as a result of Bitcoin mining. When you mine cryptocurrency, your equipment solves computationally difficult puzzles to find a new block. This block is added to Bitcoin blockchain. Your miner adds blocks to the blockchain, you receive a reward in cryptocurrency you actually mine. All crypto enthusiasts are most interested in Bitcoin. The reward for Bitcoin mining is halved every 210,000 blocks. A great number of hardware manufactures attract crypto fans with a variety of equipment. GPUs can achieve more rewards. You can see another name for these mining processors – mining rigs.
The security of Bitcoin blockchain
Blockchain implies the technology that you can trust. Speaking about Bitcoin blockchain, you can see that each block has its own position on the chain. It’s called a “height.” In November 2020, the height of the block reached 656,197 blocks. Bitcoin blockchain is irreversible. The block has been added and you can’t make changes. Each block contains its own hash, including the hash of the block before it and the previously mentioned timestamp. Math functions create hash codes turning digital information into a string of numbers and letters. If that information is changed in any way, the hash code alters as well. Nothing in the Bitcoin blockchain can be done unnoticed. There is no possibility that a hacker crashes the system. If there is one, that must be a sort of a great genius.
The goal of Bitcoin blockchain
Digital information can’t be edited in Bitcoin blockchain. It can be recorded and distributed. The Blockchain technology emerged in 1991 by Stuart Haber and Scott Stornetta. The two inventors wanted to implement a system where document timestamps could not be affected. Bitcoin blockchain was launched in January 2009, and since then it has been a part of the modern world and its future. Bitcoin’s pseudonymous creator, Satoshi Nakamoto, referred to it as “a new electronic cash system that’s fully peer-to-peer, with no trusted third party.”
To conclude
Satoshi created Bitcoin, the giant of the digital technologies. It has wrapped the world with its volume and desire to become a part of it. However, Bitcoin blockchain is not the only element to observe. Bitcoin uses blockchain just as a means to transparently record a ledger of payments. In theory the blockchain system can be used to record any number of data points. It’s all proved theoretically. Blockchain way of work can be used for product inventories, votes in an election, state identifications, and many other spheres.