One of the fascinating things about Bitcoin is how it exists. You can Google and get some answers, which all start to run together with so much insider jargon; it’s like experts talking to elementary school kids. But it all starts with this thing we call blockchain.
So literally named, think of a chain of blocks. The fundamentals of this system are that each block has data in it that a network of computers has calculated. Those calculations contain information about transactions between users and the mining of more Bitcoin.
Bitcoin stays secure because those transactions are verified by the entire network of computers purposely designated to do those calculations. Computers worldwide are assigned this task, for this very reason. So, there isn’t just one person or one company involved. BTC and the likes are untethered. The fact that different sources worldwide are performing these calculations means the entire system will always keep its integrity.
So, Why Does Blockchain Work?
If you’ve followed the logic this far, you know that a blockchain is actually a public ledger. So, instead of having your ledger for your bank transactions and your neighbor having their ledger for their transactions, all these transactions are stored on a public ledger for everyone to see. This transparency maintains the security of the Bitcoin system. However, because this information is encrypted, everyone’s business stays private. It might seem counterintuitive that a public ledger can keep everyone’s information and transactions anonymous. Yet it works, and it’s the most ingenious invention since the picture-taking thingy. 😉
What About Bitcoin Mining?
Many years ago, an individual could run Bitcoin mining from their computer in their house. However, that was back when Bitcoin had little to no value at all. It started at $0 in 2009, and within a year, the coin jumped to $0.09. That’s when BTC began to get attention. The more attention Bitcoin got, the more value gained. The more the value gained, the more often transactions between users started to occur. So now, the Bitcoin mining process is hard to perform with one computer sitting in a living room doing calculations all day. Instead, there are companies with warehouses full of computers. They use a lot of energy. Here at Byte Federal, we’ve often spoken out how the Bitcoin industry has looked for green options like wind, water, nuclear, and solar power.
At this point, if all you know is what you learned above, then you’re are off to a great start but don’t stop here, there is much to understand in the cryptocurrency land. There are so many more resources to study if you want a more thorough understanding of blockchain technology and more check out our YouTube or our website for more Bitcoin Bytes!
You don’t have to know ALL the ins and outs if you’re going to get in on a good investment. grab your smartphone, ID, and some cash and find a Byte Federal ATM near you. Join the cryptocurrency revolution.
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