2009-Bitcoin and Blockchain

Bitcoin and Blockchain came about in 2009. Bitcoin is a digital currency which derives its value from what everyone thinks its worth. It’s not backed by anything (government, gold, the Monopoly Man). This makes it unique because its value is not tied to an entity; it is simply tied to the market for Bitcoin. Blockchain is a distributed ledger. Millions of people allow their computers to be used to process and record transactions. When you trade Bitcoins, the record of your transaction is kept on millions of different computers. If a transaction occurs that the entire blockchain network doesn’t agree with (a fraudulent transaction) then the transaction will not be processed. In a very simplistic explanation of cryptography, when a transaction occurs, a combination of your own password (private key) a public password (public key) and some other unique numbers create a maths problem so difficult, that it requires millions of computers working together to crack it.

02
Jun
2009

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