Bitcoin Technology and Bitcoin Mining – What you need to know
You all might have seen the Bitcoin option in the major online transactions. The Bitcoin technology has been around since 2008 but in the past years, it has gained a lot of popularity. Most individuals are still unaware of the technology because you don’t see people paying Bitcoins to the retailer or at some outlet. This article is here to help you understand the workings of the technology.
What is Bitcoin technology?
Bitcoin is a type of cryptocurrency that allows you to transfer money over communication channels. This innovative protocol was created by the pseudonymous Satoshi Nakamoto and has totally changed the way we think about money. All you need is a Bitcoin digital wallet that generates an address for you which you can use to transfer and receive money without a middleman like a central authority to manage your transactions.
Your Bitcoin wallet is protected with a secure key that acts as a digital signature which ensures that the transactions can’t be altered by anyone once made. The Bitcoin mining network is a decentralized peer to peer network. The miners in the network ensure the proper working of the network by checking the validity of the transactions. The overall process takes minutes or an hour tops unlike banks and other financial institutes that take days or weeks to transfer money.
The Bitcoin Blockchain
The Bitcoin network is based on the blockchain technology. The process begins when the transactions are broadcasted to the network. After that, the best Bitcoin Mining Hardware create blocks by solving the cryptographic equations and add those transactions to the blocks after which the miners solve the block puzzle and validate and record the transactions in a public ledger which is known as the proof of work. This proof of work is shared with other miners who verify it and the process is completed.