Information About Bitcoin Technology: History teaches that the most revolutionary and disruptive technology comes from a group of clever individuals and not from the corporate companies. True innovators see the world differently, they see the big picture which others not. That’s why they can create new products and entire systems which change the world and lead to start new industries. In the same way the journey of bit coin started.
What is a Bit Coin Technology?
After reading, the dollar history you might get a rough idea about how financial systems work. Now, let’s imagine a new technology that allows us to do financial transactions without the involvement of third party providers or governments. This revolutionary technology is called bit coins, invented by Satoshi Nakamoto. Unlike The dollar currency printed by the governments, this technological innovation that allows anyone in the world to be their own bank to create a currency free form taxes and banking fees. In 2011 most bit coin community people were either people from the tech space, bankers and hackers. But now the usage of this online virtual currency is increasing day by day and most of the internet giant website also accepting these bit coins as a form of payment.
Science and mathematics have essential truth that stands alone irrespective of its inventers or any other people. Bitcoin is a system based on mathematical truth which can stand alone and also allows us to read the source code involved in it. Bitcoin is a virtual currency which can be digitally created, stored and exchanged. It is a digital currency and computer software with a shared code that creates a worldwide payment network.
How Bitcoin Works and Who Maintains It?
This network uses an open source protocols like much of the code supporting the internet and email. Here open source means anyone and everyone in the world can use the code without the permission of companies. No one can change the code of the public for their personal interest. Entire code is available to public for transparency. And, there are hundreds of programmers collaborating to constantly developing the technology for more features and security.
Any shared information can be flawed, corrupted and can be faked. So how do we know what we are receiving can be trusted? Movies and music are copied and lots of online scams are happening so how can we secure our digital currency? Read the following answer to solve your doubts.
It’s simple; a bit coin is not a file on your computer/Laptop. Instead it’s an online distributed database which is available publicly. This public database is called “The Block Chain”.
In the traditional banking system you need to open bank account to save money. Just like that her you need to open a bitcoin wallet account to save bit coins. Here Bitcoins ledger is a block chain which records the transactions of every bitcoin available in the world. When you sand a bit coin from one w wallet to another digital wallet, you really send the control over that part of the database code that is a unique key for the new wallet owner. The bitcoin network process the transaction and entire network sync itself.
Bit Coin Mining
Each Bitcoin mining computer has a complete and identical copy and synced together. Owners of the bitcoin mining machines are rewarded by new bitcoins for processing the transactions. But the process of mining a bit coin is very tough. You need to have lot of computing power to successfully do this task. That’s why Bitcoin miners worldwide using the GPU and ASIC technologies for mining.