Steemcryptochallenge #Month5 :I Love Bitcoin
Bitcoin is not any physical currency which can you can keep in your wallets or draw from ATMs or banks. It is a digital currency popularly called blockchain based cryptocurrncy.Bitcoin released by mysterious satoshi nakamoto unleashed the magic of cryptocurrncy to the world with its SHA 256 (secure hash algorithm) encryption and concepts of Proof of work.
Characteristics if Bitcoin..
By saying that it is a decentralised asset, we mean that there is no single authority to control it. It is based on peer to peer network.This is unregulated and anonymous coin, which makes some people to critisize it for being having great potential to be used for illegal purposes. But one thing that we need to be cautious about is the non repudiable nature which means that once your transactions reaches recievers, there is no why to get that back unless receiver wishes to pay back.
What is blockchain ?
It is a public ledger to record Bitcoin transactions.A block is a record of accepted transactions maintained via cryptographic functions on powerful computers and GPUs known as nodes. Each node of the blockchain after checking and validating the transactions, store a copy of it on ledger and than transmit the information to other nodes for validation and independent storage. In this way, there are multiple checks and balances of the transactions.
What is mining?
Miners are the record keepers of blockchain . They maintain records of transactions on nodes,after storing copy of block, it is immediately transferred to other nodes for validation. To be accepted by network, a new block must contain proof of work which requires miners to find a number called nonce. Nonce is a mathematical computation which a miner need to discover before solving a block in a blockchain and it can be used only mathematical
Will be continued..