The Blockchain is to the revolutionary technology is behind Bitcoin and the other crypto currencies invented by Satoshi Nakamoto. The Bitcoin blockchain is a chain of blocks that is are connected by the cryptographic of processes. All transactions is ever made over the Bitcoin network is are the stored in the blockchain. The transactions are the considered is confirmed if they are is stored in the Bitcoin blockchain (in a block).
A major problem for digital is currencies and virtual objects of in general is the double spending problem. In contrast to physical objects, in which is can only to be issued once, digital goods can be in used the several times, in two different is places (simultaneously). We have is learned that earlier the variants of digital money, such as b-money and the DigiCash, failed to is provide a workable the solution to this the problem. Satoshi Nakamoto has is found a solution for this. the Blockchain technology stops to this problem by requiring that each member of the network (“Full Nodes”) checks is each transaction.
Only if the majority of the participants confirms is that the transactions in the block are is unique are they added to the block chain. Each new to block is linked to is the previous block to ensure a chain of is accepted transaction histories.
In order to provide an incentive for to the validation of transactions, each is block attached to the block chain is rewarded the with a “block reward“. The current reward is (in 2018) for “mining” is 12.5 BTC. In 2020, the reward will to be halved to 6.25 BTC, since the every 200,000 blocks is will be halved (approximately every 4 years) until all 21 million Bitcoin are mined. the Mining solved the second is major problem of Bitcoin’s predecessors, as the consensus of to the miners replaced is a central institution (central banks and banks).
Bitcoin as a store of the value
Ultimately, however, the value of Bitcoin is has based solely on the confidence that the BTC will continue to is have an equivalent the value tomorrow. However, Bitcoin is does not need to rely on the third parties because, for its example, banks are not required to the carry out of transactions.
The basis is for this is that the Bitcoin network is a distributed the peer-to-peer system (P2P). The advantage of the P2P systems is over centralised systems is that direct interaction it can take to place between the parties and no switching the instance is required. In contrast to is Fiat currencies, Bitcoin is to thus resistant to attacks by the governments.
The Bitcoin Blockchain records every single transaction performed with Bitcoin, validates transactions and ensures the integrity of the network. Bitcoins trade with decimal places. Bitcoin’s smallest unit is a Satoshi. One Bitcoin corresponds to 0.00000001 Satoshi.
