What is Bitcoin and How does the Bitcoin System Work?
This post is in line with our continuing tradition of bringing you the most relevant and helpful Bitcoin news. Please read till the end.
Bitcoin is the world’s first cryptocurrency. Unlike physical currencies, bitcoins are created, distributed, traded, and stored using a decentralized ledger system known as the Blockchain. It was launched in 2009 by the pseudonymous creator Satoshi Nakamoto. Going by the amount of data stored on its Blockchain and its market capitalization, it is, without a doubt, the world’s largest cryptocurrency. Its wide popularity is the reason why BTC prices have skyrocketed in the last several years.
How Does The Bitcoin System Work?
The Bitcoin system features a collection of nodes or computers that allow miners to run the bitcoin code and store their bitcoin blockchain copy. The Blockchain is similar to a block collection, where each block contains several transactions. Bitcoin miners mint a new bitcoin every 10 minutes and keep the network running by continuously adding new bitcoin transactions to the Blockchain. All the computers that run the Blockchain contain the same list of transactions and can transparently track each new bitcoin transaction. It makes it difficult for anyone to cheat the system. As BTC prices continue to soar with each passing day, engineers have been working tirelessly to design protocols that will help improve the speed and privacy of Bitcoin transactions.
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