What is Bitcoin – Beginners Guide
“Ray of Light”, from CollabifyTV goes through a simple explanation of how Bitcoin started, Bitcoin’s uses, and how the technology works. To watch more information blockchain education videos and guides go to this playlist on Youtube: https://www.youtube.com/playlist?list=PLFPtoEYn4WTP_xQh_RRKCyD7hZFOYB-cw
According to Wikipedia, “Bitcoin is a decentralized digital currency that can be transferred on the peer-to-peer bitcoin network. Bitcoin transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.”
Bitcoins Blockchain Technology
Bitcoin’s Blockchain Technology
Cryptocurrencies are a part of a blockchain as well as the network needed to run it. Blockchains are distributed ledger that is a shared database that holds information. The data stored in the blockchain is protected with encryption methods. When a transaction occurs in the blockchain, the information from the prior block is transferred to an additional block that contains the new data, which is encrypted, and then the transaction is confirmed by miners who are validators within the network. If a transaction is confirmed then a new block is created, and an Bitcoin is created, and then given as reward towards those miner(s) who validated the information contained in the block. They are free to utilize it, keep it, or even sell it.
Bitcoin utilizes the SHA-256 hashing algorithm for encryption of the data that is stored in blocks of the blockchain. Simply put, the transaction data that is stored in a block has been secured into a high-quality 256-bit Hexadecimal. The number includes all the transaction data as well as information associated with the blocks that preceded the block.
Bitcoin Mining and Crypto Exchanges
Bitcoin is a type of cryptocurrency that is a digital currency created to function as a form of money, and as a method of payment that is not under the control of particular person, group or organization, thereby it eliminates the need for third party participation in transactions with financial institutions. Bitcoin is paid by blockchain miners for the effort they put into verifying transactions. It can also be bought at a variety of exchanges.
Bitcoin was made available to the general public during 2009, by an unknown person or group who went by as their moniker Satoshi Nakamoto.
It is now the most well-known cryptocurrency around the world. Its popularity has led to the development of a variety of cryptos. These competitors attempt to take over the role of an electronic payment system or serve as security or utility tokens in other blockchains as well as new technology for finance.