Bitcoin is the first ever digital currency that was also the first one to be created based on blockchain technology. The purpose of the project launch was to check the operability of the blockchain in real conditions. When entering the market in 2009, more than 1000 bitcoins were given for $ 1. And now in August 2022, at the peak of growth, almost $ 23,000 is offered for 1 BTC. It signifies that the cost of the currency has increased by 23 thousand times. For more details visit https://blockchainjobz.com/
In recent years, most people have come across a new term -“blockchain”, which, seems difficult to understand at first glance. But given that it is gaining popularity quickly, it is worthwhile to try to figure it out. So, according to Wikipedia, “blockchain” in English means a chronologically built chain of blocks connected to each other and storing information.
What is blockchain?
A blockchain is a permanently preserved, decentralized database of data. This information is stored simultaneously on millions of media (computers) worldwide. So that it is impossible to disable the system or manipulate it. The blockchain is open to every participant in the chain. Users view the history of actions, and it is impossible to erase or change the information. Transactions involving money are recorded here, information about which is in the public domain for everyone. The currencies of all countries are controlled by the state because the state’s rights to them belong only to it. The distinctive feature of cryptocurrencies is the absence of an owner. It is a long digital series, a mathematical cipher.
Features of Blockchain
Distinctive features of the blockchain:
- Anonymity – participants pay for goods and services knowing that they will not be calculated;
- High speed of transactions – the transfer of money occurs directly, without spending time on verification and permission of third parties;
- Decentralization – transactions do not have a single central server;
- Equality – Each participant has equal rights.
Decentralizing work on the blockchain is a necessary aspect. Since the operations involve copies of the originals, which can be distributed and transmitted at times and again. Any actions in the blockchain network are automatically recorded on the devices of all participants. It makes unsuccessful attempts by fraudsters to capture, change, or delete information.
Blockchain and Bitcoins: Concepts and Differences
Bitcoins are a virtual currency. There are several ways to obtain them:
- Exchange of any currency for bitcoins;
- Earning money with the help of special games and sites;
- Mining, or mining coins
A blockchain is a kind of distributed database in which bitcoins operate. To understand the differences between bitcoin and blockchain, you need to know that bitcoin is only based on blockchain technology. It means it is not the only way to use the blockchain. There are also various protocols and smart contracts that operate within the blockchain network itself. Bitcoin is more limited in its functionality, as the technology on which it is based only allows you to make transactions.
Mining in the blockchain
The process of mining means the acquisition of bitcoins. It occurs through the search for the necessary figure with the characteristics that the system has set. Miners (miners) on their computer devices constantly solve complex mathematical problems to earn bitcoins and confirm money transfers within the system. To confirm a monetary transaction and queue up transfers, you need miners to find the necessary cipher. The complexity of the process lies in the fact that this number can be found only by sorting through an unlimited number of varied codes. So, the system uses huge computing power.
Anyone who censors a fraud called a “minor” records bitcoin transaction. And records which bitcoin transactions are fraudulent which are genuine. This act of censoring fraud and recording transactions is called mining. From there, it came to be called a miner who mines. Miners receive bitcoins as a reward from the bitcoin system (bitcoin protocol) for censoring fraud and recording transactions.
Conclusion
Since blockchain technology is obvious and open, all kinds of services and applications are built on the blockchain network. There are open systems that anyone can join or become a participant or miner. The participants themselves are busy managing this system.