What is Bitcoin ?
In recent days everyone is hearing the word bitcoin but most
of the people doesn’t aware about the bitcoin concept, how it works etc. This
article, will help to understand new users about the bitcoin currency.
Bitcoin is a cryptocurrency
Bitcoin is a digital cryptocurrency whose inventor is
unknown and which used as a payment system worldwide. It is the first
decentralized currency which is running without any control of any government
nor the company nor any individual authority. It is using blockchain technology
to verify the transactions through different network nodes.
Where to save bitcoins ?
Bitcoin saved in wallets. Wallets are hosted at exchange. Get more details about
wallet.
How many bitcoins exist in the world ?
If Bitcoin is a currency then there should be a proper value
with respect to each currency so question arises how this value is defined also
how many total bitcoins exist because it can’t be indefinite. So, the Bitcoin’s
value is decided by perception of users, it is the same method as most of the
currencies work. Total number of bitcoins also changing in the world and that
count will reach to Twenty one million only. After this, total number of
bitcoins will not change. Currently, around sixteen million bitcoins are
generated through mining.
Blockchain
In simple words, we can say blockchain technology is nothing
but a technology which is managing the database that keeps record of the
worldwide bitcoin transactions. You can find more details on below articles –
- Blockchain technology can change the future technologies scope ?
- What is blockchain technology ?
- How blockchain technology works ?
Bitcoin Mining
As I mentioned earlier bitcoins are generated through mining
process. Mining is required in bitcoin because, it is used to add new bitcoins
in system also to add transaction records to bitcoin’s public ledger of past
transactions. (Read more about Ledger here). Mining is designed to be
resource-intensive and quite difficult so that number of blocks found each day
by miners remains steady. (Read more about blocks and miners here). Anyone can
do the bitcoin mining and earn the bitcoins.
Below diagram will help to understand the complete
architecture of bitcoin working.
About Machindra Dharmadhikari
0 comments:
Post a Comment