What is Bitcoin?
To understand the power and what Bitcoin is, we first need to understand what blockchain is. Blockchain is a method of storing information in a computer network, representing a continuously growing list of computer records, called "blocks," linked together and cryptographically secured.
Each "block" contains information about the previous "block" and is timestamped. This provides chronological integrity of the chain back to the first "block." This technology is designed to ensure security through its design because it doesn't allow data modification. Transactions between two participants can be recorded in a way that is durable and verifiable. Typically, the blockchain is stored in a distributed manner (with physical copies on separate computers) and there is no single "master copy." Participants in the network are equal (peer-to-peer) and follow a specific protocol for validating new "blocks." Once validated and recorded, no "block" can be changed without altering all subsequent "blocks."
Technically, it is clear to any technical person that blockchain is a relatively slow database, but due to the validation of previous blocks, it is the most secure and best one, and most importantly, decentralized.
Blockchain as a technology has a relatively big drawback, namely that it is relatively easy for experienced hackers to change previous and future values of the blocks. This brings us to the next concept: hashing.
Nakamoto foresaw these vulnerabilities in his blockchain architecture. Instead of using simple addition for creating checksums and tracking the links in the data chain, he used a cryptographic process called "hashing."
Each "block" contains information about the previous "block" and is timestamped. This provides chronological integrity of the chain back to the first "block." This technology is designed to ensure security through its design because it doesn't allow data modification. Transactions between two participants can be recorded in a way that is durable and verifiable. Typically, the blockchain is stored in a distributed manner (with physical copies on separate computers) and there is no single "master copy." Participants in the network are equal (peer-to-peer) and follow a specific protocol for validating new "blocks." Once validated and recorded, no "block" can be changed without altering all subsequent "blocks."
Technically, it is clear to any technical person that blockchain is a relatively slow database, but due to the validation of previous blocks, it is the most secure and best one, and most importantly, decentralized.
Blockchain as a technology has a relatively big drawback, namely that it is relatively easy for experienced hackers to change previous and future values of the blocks. This brings us to the next concept: hashing.
Nakamoto foresaw these vulnerabilities in his blockchain architecture. Instead of using simple addition for creating checksums and tracking the links in the data chain, he used a cryptographic process called "hashing."
If you found this article useful, consider supporting us:
👉 If you want to see the QR codes, click here.