What is a Bitcoin? What is a Blockchain?
On 18th August 2008, bitcoin.org domain was registered and soon after that the first version of Bitcoin was announced on 8th January 2009. Bitcoin is a decentralized digital currency that was created in 2009. It is a type of cryptocurrency which uses peer-to-peer electronic cash system to operate. Nobody owns bitcoin but everyone can take part into it.
Bitcoin makes it very easy to send and receive digital money very quickly to anyone anywhere in the world. It is a form of digital money invented under name Satoshi Nakamoto where transactions take place directly between users. It is a form of digital asset and payment system.
Here, one electric coin is a chain of digital signatures where each owner transfers the coin to next by digitally signing a hash of previous transaction and public key of next owner and adding this to at coin’s end. Signatures can be verified by the payee to verify the chain of ownership.
It doesn’t require any special server to settle transactions. Anyone can verify and record payments into block chain also known as mining where it uses computing power from users. Bitcoins are not issued by any banks or government. It uses public and private keys which are long alphanumeric string linked through encryption algorithm. Also, because of bitcoin many other virtual currencies have been launched.
In 2008, first distributed blockchain was foreseen by group known as Satoshi Nakamoto, which was implemented as a core component of bitcoin, which serves as public ledger for all transactions. Satoshi Nakamoto used word block and chain separately and then it was moved into wider use where it was originally block of chain. The file size of Bitcoin blockchain has been increased gradually year by year. On August 2014, it was 20 GB which reached to 30 GB on January 2015 and it reached to 50 GB to 100 GB from January 2016 to January 2017.