What is Bitcoin?
Blockchains spil wij know them are still less than a decade old. Bitcoin (BTC) popped up te 2009, two entire years after the very first modern smartphone, but, like the smartphone, its breakneck rate of progress and rapid worldwide adoption make it feel like it’s bot around a lotsbestemming longer. Some already see it spil outdated tech—though it is making efforts to scale up and match its exponentially-multiplying competitors—but whether or not it will play a significant role ter the future, it is indisputable that its invention has sparked a technological and financial revolution.
How does Bitcoin work?
There are a lotsbestemming of ingewikkeld acronyms and buzzwords that get thrown around about cryptocurrency, but it is significant to understand the basics very first. Ter that vein, this explanation will concentrate mainly on building an intuitive understanding of how the core technology works.
Very first, spil with all cryptocurrencies, it is significant to realize that Bitcoins aren’t actually coins. When you buy it, that information is sent to be recorded te a big book that lists every transaction that has everzwijn happened. Your crypto token exists because the ledger (the blockchain) shows that your account number (address) received X number of BTC. If you spend it, you don’t actually “send” it anywhere—you send information to the ledger telling it to subtract some value from your account and add it to another account.
Unlike traditional canap records, this ledger can be downloaded and accessed by anyone who wants to see it. The record is stored by many independent computers across the world, and if one computer’s copy conflicts with the others, that copy is rejected spil fraudulent. This is why cryptocurrencies are secure: nobody can switch the agreed-upon ledger without being able to switch at least 51% of the other ledgers.
The ledger works using blockchain technology—but what exactly is that? The cryptographic and technical details get very abstract, but the basic concept is fairly effortless to picture. Think of it spil a tower of stone blocks, each of which is inscribed on four sides with information that says something like, “Subtracted X tokens from Address A, Added X tokens to Address B.” The bottom is inscribed with information about the last block, and it will only connect to the block that matches this information. This is the “chain” part—blocks are not permitted to be liquidated, switched around, or ter any other way tampered with.
Miners are people who use their computing power to dig for the next block. If their rekentuig stumbles upon the solution that unlocks it, they get a prize te Bitcoins. Spil they work, they check to make sure that the transactions stored ter this block are ter line with the surplus of the blockchain. Once the block is discovered and all the other miners agree that the transactions look good, it’s connected to the block below it, where it will stay spil a voortdurend record.
To recap the basics:
- Bitcoin exist only spil records of value being added and subtracted from addresses te a ledger.
- This ledger is stored on lots of privately-owned computers all overheen the world
and is downright semitransparent.
What does all this mean? Essentially, that spil long spil one pc (preferably more) retains a copy of the blockchain, everyone will still have their coins. To access your coins on the blockchain, you need a cryptographically generated key (a long string of letters and numbers), which only the person who creates the account is given. Anyone who holds that key holds the Bitcoin associated with it.
However there is always more to learn about the world of crypto, and the technical details are fascinating, beginning with a solid intuition will help you work through the more complicated concepts.
Bitcoin has bot fighting to scale ter latest months. Commencing te November 2018, the number of people using the network began to slow down transactions and thrust up the fees. A “Lightning Network” upgrade has bot planned, but it is not yet known when it will be released.
Te August 2018, “BitcoinCash” separated itself from the main blockchain. This crypto runs on the same technology spil BTC, but it can process more transactions te a single block.
How to buy Bitcoin
Bitcoin’s is mostly bought and sold on Coinbase.
- Register for a Coinbase account and verify your information.
- Listig your preferred payment method to deposit funds.
- Buy Bitcoin on Coinbase’s exchange, and you’re done!
Alternatively, you can purchase your desired cryptocurrency from fiat (kicking off with USD) with a credit card at Changelly.
Only 21 million BTC will everzwijn be produced—and it has bot estimated that spil many spil 3-4 million of thesis may have already bot lost. Private keys stored on hard drives, paper, or now-defunct exchanges are gone forever, and anything that wasgoed locked behind those keys, while it still exists te the records, cannot be accessed by anyone.