Discussions about Blockchain and cryptography without Bitcoin are unjust!

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.