Profile

What Is Blockchain?

Founded by Satoshi Nakamoto in 2009, Blockchain is the distributed ledger that store and manage transaction. Each record in the database is known as block and it contains all the details like transaction time and link to the previous block. Thereby no one can change the information once it is recorded in the system. So you can say that Blockchain is safe and immutable, where information remains safe for as long as the network exists.

The bitcoin blockchain

Bitcoin is the world’s first Cryptocurrency that is designed to work without a central bank or single administrator. Based on peer-to-peer electronic system users can send Bitcoin without any third party. The Bitcoin transaction is verified by the network known as nodes through cryptography and recorded in a public distributed ledger called a blockchain.

So here are few facts about the Bitcoin:

  • It is not issued by a central authority.
  • There is a limit of 21 million.
  • Currently just over 17 million are in circulation.
  • The first transaction using Bitcoin is widely believed to be carried out by a programmer named Laszlo Hanyecz, who spent 10,000 bitcoin on two Papa John's pizzas in 2010.
  • The identity of bitcoin creator Satoshi Nakamoto remains a mystery.

How does it work?

Bitcoin is a decentralized Cryptocurrency which is not controlled by one central authority. Rather it is controlled and maintained by network of people known as miners. These miners are also known as node on the network, are people running purpose-built computers that are actually competing to solve complex mathematical problems in order to make a transaction go through. For example, say lots of people are making Bitcoin transactions. Each transaction originates from a wallet which has a “private key.” This is a digital signature and provides mathematical proof that the transaction has come from the owner of the wallet.