Bitcoin is the largest traded cryptocurrency in the world. What cryptocurrency basically means is that it is a digital currency that makes use of encryption for generating money and for verifying transaction. The particular transaction is added to a public ledger commonly known as ‘Transaction Block Chain’ and new coins are generated by a method called mining.
In this digital era, cryptocurrencies in general and Bitcoin (being the largest and first cryptocurrency) in particular have gained a lot of popularity. The future of bitcoin as a crypto currency does not seem to be bleak as it holds great prospect, just like other precious commodities such as oil.
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What does Blockchain entail?
Like the name indicates, a blockchain is a chain of blocks that contain information. This technique was originally described in 1991 by a group of researchers and was originally intended to timestamp digital documents so that it’s not possible to backdate them or to tamper with them, almost like a notary.
However, it went by mostly unused until it was adopted by Satoshi Nakamoto in 2009 to create a digital crypto-currency, Bitcoin. Blockchain is an important reason behind bitcoins’s rapid success. However, there is need for a commonly agreed communication procedure among different blockchains as it will pave the way for further growth for blockchain technology.
A blockchain is a distributed ledger that is completely open to anyone. They have an interesting property; once some data has been recorded inside a blockchain, it becomes very difficult to change it. So how does that work? How Blockchain helps securing Bitcoin transactions?