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The Washington Independent

The Basic knowledge of blockchain

The Basic knowledge of blockchain

Bitcoin was launched in 2008 by Satoshi Nakamoto to make the digital world. Yes, there were a lot of problems before bitcoin. For example, people use fiat currency, and if they want to transfer money abroad or outside the country, they need to pay high charges to third parties like banks and financial institutions.

Mitchel Nash
Crypto
Oct 12, 2021

Table of Contents

Introduction

Bitcoin was launched in 2008 by Satoshi Nakamoto to make the digital world. Yes, there were a lot of problems before bitcoin. For example, people use fiat currency, and if they want to transfer money abroad or outside the country, they need to pay high charges to third parties like banks and financial institutions. But the bitcoin blockchain was the first platform that made all things possible through a single platform. The first bitcoin was mined on Blockchain by Satoshi Nakamoto, and at the initial stage of mining bitcoin, the reward was 50 bitcoins. Unfortunately, many people are confused with blockchain and bitcoin exchanges. So in this article, we will learn about the basis of blockchain in detail. So without wasting time, let's understand the whole concept of the bitcoin blockchain.

What is blockchain?

Blockchain is the platform where all the bitcoin transactions occur. The second name of blockchain is a public ledger which means it is a type of digital ledger which discloses all the transactions publically. That means you can see the previous and latest transactions by visiting BitIQ.

Blockchain consists of two words, Block and chain. Block means a set of enough transactions, and chain means repeating the circle. So in simple terms, blockchain is a platform where all the transactions occur, and miners create blocks of transactions by validating each transaction and then broadcast it into the blockchain network.

The relation of miners with blockchain:

Blockchain is just a platform where you can buy, sell, send, or receive bitcoin from private, and the miners perform public addresses and the actual work. Miners play an essential role in the blockchain, and bitcoin and blockchain are nothing without miners or mining. Miners are the persons who validate the transactions by solving complex mathematical equations in a programming language. They are experts in mathematics and programming. When you send bitcoin to a particular address, the first step is to check whether this transaction is correct or not, and the miners perform the validation process through their skills. Suppose you are sending bitcoin to a particular address and miners do not validate the transactions, then there is no means of blockchain or bitcoin. Thus, there is an intense relation between blockchain and miners.

Blockchain makes all the difference:

Why is bitcoin popular? What is the reason behind its popularity?  The answer is decentralization. Yes, the main reason that makes bitcoin a more widespread currency separated from other currencies is decentralization. Blockchain is a decentralized platform which means there is no controller of bitcoin. The government cannot control bitcoin, banks and financial institutions cannot regulate bitcoin, and the country's president cannot control it. Even the founder of bitcoin, Satoshi Nakamoto, cannot control or manage bitcoin because it is a decentralized system.

There is a deep relation between blockchain and miners and miners who work behind the blockchain for the smooth running of bitcoin. The miners are the controllers that mean if miners stop validating bitcoin, then bitcoin will stop. The bitcoin blockchain is the world's most secure platform for bitcoin transactions; even the notorious hacker cannot hack the bitcoins. Many miners are working behind the network, and if you want to hack the bitcoin, you have to hack all the computers of miners working behind it.

Exchange and Blockchain:

Many articles say hackers can hack the bitcoin, and it is not safe, but it is not bitcoin. In reality, bitcoin is impossible to hack because it is a decentralized system. Bitcoin exchanges are the third parties that provide extra services to bitcoin and crypto users and charge some amount for these services. Some exchanges get hacked, and many people think hackers can hack the bitcoin.

But understand the difference between the blockchain and bitcoin exchange. Why are people using exchanges rather than blockchain? The biggest reason for not choosing the blockchain for bitcoin transactions is privacy; that means anyone on the blockchain can check your public address, your previous and recent trade, the amount of your send, receiver, and sender's public address. But exchanges provide the extra services with specific security like no one can check the public discourse of sender and receiver. Anyone can limit the number of transactions, but there is no detail about the sender and receiver.

So exchanges are good to buy bitcoin and other crypto coins for the short term or trading purposes, and if you are serious about bitcoin investment, you must go with the powerful blockchain platform.

Mitchel Nash | Mitchel works for a high-tech telecommunication firm as a software engineer with vast experience and management skills. The company creates and provides technologies that help service providers provide high-quality voice and data services over broadband access networks while maximizing their network infrastructure investment. He is in charge of the production of the company's management software products as a senior software engineer. Mitchel has a B.Sc. in Computer Sciences from Tel-Aviv Jaffa Academic College.

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