All You Need To Know About Bitcoin

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Fig: Bitcoin

Bitcoin ,Want to know about ?

So you have to right place , you will get all you need to know about Bitcoin.

You will get all your answers what is bitcoin? From where it came? And how it works?

It is a peer to peer payment system developed by “Satoshi Nakamoto” in the year 2009. It is a

decentralized currency, which means there is no middle organization: or company that keep the log of the

transactions. According to the google.com, the current rate of 1 BTC is 7,77,671.14 (INR).(As on September, 3rd,

2019 08:27 PM).

According to the journals.elsevier.com, the financial capabilities of Bitcoin are compatible with that of gold

and the dollar, as they share similar traits.

Where the Bitcoins Came From ?

Satoshi Nakamoto had developed with the group of developers Bitcoin.

This group of developer also released the first Bitcoin software in which the first units of currency called

Bitcoins.

WHAT IS BITCOIN AND BITCOIN BLOCKCHAIN?

It is the virtual monetary unit has no physical representation.

The Bitcoin Blockchain consists ,of a sequence of blocks where each block builds on its

predecessors and contains information about new Bitcoin transactions. The Bitcoin

Blockchain has the public ledger, where it maintains all the ownership information for any point of time.

To use the Bitcoin system, we need to download the Bitcoin wallet. The wallet is software that Store,

receive and sending the Bitcoin unit. The next step is to exchange of different currency into the Bitcoin unit.

The common way to exchange the Bitcoin unit with our physical currency, just make an account on one of the

many Bitcoin exchange and transfer fiat currency to Bitcoin unit. Due to the widespread adoption of Bitcoin

, the pricing on large exchanges is very competitive with relatively small bid-ask spreads.

HOW DO A BITCOIN TRANSACTION WORKS?

The transaction system in the Bitcoin is similarly as the transaction through any payment app like Paytm,

Paytm is the most popular and convenient payment system in India. The seller shows his/her payment

link (QR Code) to the buyer, scan or accept the payment request, and send the desired amount

of BTC (Bitcoin).

A transaction in Bitcoin is a transfer of value between Bitcoin wallets that included in the blockchain. Each

Bitcoin wallets has an obscure piece of data called a private key, which is used to sign transactions,

providing a mathematical proof of work confirmation of transaction) that they have come from the real owner

of the wallet.

All transactions are broadcast to the network and usually begin to be affirmed within 11-15 minutes,

through a process called mining.

BITCOIN MINING

Bitcoin mining is one of the ways to earn Bitcoins using our computational system power. Every Bitcoin

transaction consists of some mathematical calculations which need to solve using high computational

system power.

Minors are those who mines the Bitcoins.

Those who mine the Bitcoins are known as the Bitcoin Miners.

Minors do the verification or validation of every Bitcoin transaction.

A miner collects all the pending transactions. verifies their legitimacy, and assembles

them into as a “block candidate.”

Every miner continuously tried out to find the hash value that satisfied the condition in block candidate,

that the hashed value must be a particular threshold value means it must display several zeroes at the beginning

of the hash value.

Need to be zero

In the Bitcoin blockchain, a data field contains an arbitrary value called nonce. The miner

modifies this arbitrary value/data order to gain a new hash value. These customisations did not affect the set of

transactions. Just as with our example, every customisation result in a new hash value.

As , we have read in this blog about the essence of bitcoin.

You can read more about various blogs here.

Like : Blockchain and much more.

References :

Bitcoin Blog

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Written by 

VIkas Vashisth is a Software Consultant and having experience in DevOps. He loves to know about new technology.