The Story of Bitcoin
No one knows who Satoshi Nakamoto is. It could be a man, a woman or even a group of people. Satoshi Nakamoto only ever spoke on crypto forums and through emails.
In late 2008, Nakamoto published the Bitcoin whitepaper. This was a description of what Bitcoin is and how it works. It became the model for how other cryptocurrencies were designed in the future.
On January 12, 2009, Satoshi Nakamoto made the first Bitcoin transaction. They sent 10 BTC to a coder named Hal Finney. By 2011, Satoshi Nakamoto was gone. What they left behind was the world’s first cryptocurrency.
Bitcoin became more popular amongst users who saw how important it could become. In April 2011, one Bitcoin was worth one US Dollar (USD).
By December 2017, one Bitcoin was worth more than twenty thousand US Dollars! Today, the price of a single Bitcoin is 7,576.24 US Dollars. Which is still a pretty good return, right?
INTERESTING FACT
In 2010, a programmer bought two pizzas for 10,000 BTC in one of the first real-world bitcoin transactions. Today, 10,000 BTC is equal to roughly $38.1 million - a big price to pay for satisfying hunger pangs.
2 pizzas exchanged to 10000 Bitcoins
So, Bitcoin has succeeded where other digital cash systems failed. But why? What is cryptocurrency doing differently? The thing that makes cryptocurrency different from fiat currencies and other attempts at digital cash is blockchain technology. Let’s find out how it works…
What is Blockchain?
All cryptocurrencies use distributed ledger technology (DLT) to remove third parties from their systems. DLTs are shared databases where transaction information is recorded. The DLT that most cryptocurrencies use is called blockchain technology. The first blockchain was designed by Satoshi Nakamoto for Bitcoin.
A blockchain is a database of every transaction that has ever happened using a particular cryptocurrency. Groups of information called blocks are added to the database one by one and form a very long list. So, a blockchain is a linear chain of blocks! Once information is added to the blockchain, it can’t be deleted or changed. It stays on the blockchain forever and everyone can see it.
The whole database is stored on a network of thousands of computers called nodes. New information can only be added to the blockchain if more than half of the nodes agree that it is valid and correct. This is called consensus. The idea of consensus is one of the big differences between cryptocurrency and normal banking.
At a normal bank, transaction data is stored inside the bank. Bank staff makes sure that no invalid transactions are made. This is called verification. Let’s use an example;
George owes 10 USD to both Michael and Jackson. Unfortunately, George only has 10 USD in his account. He decides to try to send 10 USD to Michael and 10 USD to Jackson at the same time. The bank’s staff notice that George is trying to send money that he doesn’t have. They stop the transaction from happening.
The bank stopped George from double spending which is a kind of fraud. Banks spend millions of dollars to stop double spending from happening. What is cryptocurrency doing about double spending and how do cryptocurrencies verify transactions? Remember, they don’t have stuff as the bank does!
How Does Blockchain Work?
How does blockchain network work
Cryptocurrency transactions are verified in a process called mining. So, what is cryptocurrency mining and how does it work?
Transacting in physical gold is, unfortunately, quite a burden, and while services like e-gold had huge potential, they inevitably fail because they get beheaded by the government. If a digital gold company is too successful, the government destroys it. Anyone who tries to make it useful as a currency gets shut down – GoldMoney is another great example.mine bitcoin galaxy bitcoin bitcoin uk uk bitcoin mastering bitcoin fpga ethereum акции bitcoin r bitcoin bitcoin earn hosting bitcoin ethereum supernova форк bitcoin monero пул символ bitcoin factory bitcoin книга bitcoin
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Dapps are open-source software that use the blockchain technology. Unlike traditional apps, they don’t need a middleman to function. As they are still a relatively new concept, it is difficult to pinpoint an exact definition of them. However, noticeable common features include the fact that they are open source (governed by autonomy) and decentralised.расширение bitcoin Blockchain changes all of that. Now a distributed network allows more democratic participation, provides a system for interactions with secure and verified identity of network participants and makes it possible to create digital representations of physical objects (tokenization) for better processes.While anyone is welcome to conduct research and development privately, any attempts to make protocol changes, especially non-backwards compatible changes, should occur in the open rather than behind closed doors. Bitcoin belongs to humanity, thus it is important that proposed changes be open to public comment. The Bitcoin Improvement Proposal process is the recommended way to go about suggesting changes, though because no authority can enforce that the process be followed, it’s not a requirement.bitcoin динамика bitcointalk bitcoin
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They perceive money as an arbitrary token, but this is a mistake, and this is where the grand misunderstanding of Bitcoin begins, because if money is an arbitrary token, and we already have a great arbitrary token backed by the full faith and credit of the United States Government, why should we get distracted by some other arbitrary token?ann bitcoin bitcoin lucky bitcoin valet bitcoin nyse продажа bitcoin plus500 bitcoin bitcoin scan bitcoin security мониторинг bitcoin With CMC Markets, you can trade ether via a spread bet or CFD account. This allows you to speculate on its price movements without having to own the actual cryptocurrency. You aren't taking ownership of ether. Instead, you’re opening a position which will increase or decrease in value depending on ether’s price movements against a fiat currency.валюта tether bitcoin icon bitcoin 2018 bitcoin cny bitcoin statistics bitcoin usd bitfenix bitcoin bitcoin сигналы
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