So let us first understand #Bitcoin in a more technical aspect after we have dug our heads into #blockChain and #cryptography then we will understand the subsequent topics in our subsequent articles.

Bitcoin is a decentralized digital currency that was created in 2009 by an unknown person using the name Satoshi Nakamoto that operates on a peer-to-peer network without the need for intermediaries such as banks or financial institutions. Instead of relying on a central authority, Bitcoin relies on a network of nodes that collectively verify and confirm transactions. These nodes are run by users of the Bitcoin network who contribute their computing power to the system.

At the core of Bitcoin's technology is the blockchain, about that we have already covered in last posts. Transactions on the Bitcoin network are verified by a process called mining, which involves solving complex mathematical problems to validate transactions and add them to the blockchain. That is related to #Consensus_Algorithm that will cover in next article. Mining is done by specialized computers called miners that compete to solve these mathematical problems and receive rewards in the form of newly created Bitcoins.

The supply of Bitcoin is limited to 21 million units, which are created through the mining process. As more Bitcoins are mined, the difficulty of mining increases, which means that more computing power is required to mine new coins. This is designed to ensure that the rate of Bitcoin creation remains stable over time.

Bitcoin transactions are pseudonymous, which means that users are identified by their public addresses instead of their real names. However, all transactions are recorded on the blockchain and can be traced back to their origin. This makes Bitcoin more transparent than traditional currencies, which can be used for anonymous transactions.

Overall, Bitcoin's technical design ensures that it is secure, transparent, and decentralized, making it an attractive alternative to traditional currencies for those who value privacy, security, and financial freedom.

So, first, let us try to understand the root and raw meaning of #cryptography i.e #cryptography in a broad sense then we will restrict it to #bitcoin version!

Cryptography is the practice of securing communication from adversaries. It involves techniques and methods for encrypting and decrypting messages to protect their confidentiality, integrity, and authenticity.

The origins of cryptography can be traced back to ancient civilizations, where early forms of encryption were used to protect secrets and communicate sensitive information. The ancient Egyptians, for example, used hieroglyphs to encode their messages, while the Greeks used a method called the scytale to encrypt messages sent by their military commanders.

One of the most famous examples of cryptography is the Caesar cipher, which was used by Julius Caesar to protect his military communications. This technique involves shifting each letter in the message a certain number of places down the alphabet. For example, a shift of three would turn the letter A into D, B into E, and so on.

Cryptography has been used throughout history for various purposes, including military, diplomatic, and commercial communication.

Now let us come back to #bitcoin and #blockChain

Bitcoin uses a cryptographic technology called public-key cryptography, specifically the Elliptic Curve Digital Signature Algorithm (ECDSA), to secure transactions and prevent unauthorized access to the network.

Public-key cryptography involves the use of two keys - a public key and a private key - to encrypt and decrypt messages. In the case of Bitcoin, each user has a pair of public and private keys. The public key is used to receive Bitcoin transactions, while the private key is used to sign and authorize transactions.

When a user wants to send Bitcoin to another user, they create a transaction and sign it with their private key. The transaction is then broadcast to the network, where it is verified by other nodes using the sender's public key. If the transaction is valid, it is added to the blockchain.

The use of public-key cryptography and the blockchain allows for a decentralized and trustless system, where transactions can be securely and transparently recorded without the need for intermediaries such as banks or other financial institutions. This has made Bitcoin popular for peer-to-peer transactions and as a store of value.

The whole transaction mechanism involved in bitcoin uses a consensus algorithm and mining is also a related topic that we will cover in our next post.

TILL THEN KEEP SMILING AND DO NOT FORGET TO FOLLOW US.