Monday, April 6, 2015

Class 8, The Bitcoin Blockchain

Bitcoin is a digital wallet/currency used as an online payment system. Thus, it can be used without usage of a credit card or the bank. The users can transfer money by peer-to-peer system (P2P) in a very efficient and easy way. It was invented by Satoshi Nakamoto in 2008 and was released as an open source a year later, 2009.



It also runs both on your computer or mobile phone, generating your Bitcoin addresses. You can disclose your address anytime you want to make a transaction with other person. Moreover, one of the interesting facts is that no one runs Bitcoin; Bitcoin runs collectively by the users and all of the Bitcoin users are managers. Bitcoin has this function called ‘blockchain’, in which records and works as a public ledger of all transactions in the Bitcoin network.


In another words, it is a shared public ledger that includes all transaction in records. While confirming waiting transactions, the block chain includes mining process, a distributed consensus system, to confirm and makes a chronological order in the block chain, enforced with cryptography. 

Explanation of the bitcoin and blockchain technology


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