Bitcoin – What Is It and Why Is It Needed

The Bitcoin system uses Blockchain technology, which means “block” and “chain”. This combination of words speaks for itself and reflects the essence of the system. However, for dummies, it is worth deciphering the essence of the blockchain in more detail. So, this is a chain of blocks containing data regarding transactions. It is somewhat similar to the account book and is stored by each user, and is updated from time to time. It is important that this chain is characterized by continuous action.

It guarantees high reliability and decentralized operation of Bitcoin. However, this feature is not visible to every user, since it is activated exclusively at the time of checking transactions.

The size of one block of transactions in Bitcoin is 1 Mb, while it can include up to several thousand operations. Interestingly, each new block in the chain retains information regarding completed transactions included in it, as well as all past blocks. To synchronize new and previous blocks, you must use special hashed headers. A block can be included in the main network only if all the transactions that are part of it are verified. Assignment of an individual title is carried out on similar conditions. Once the verification is confirmed, the block receives the header and is included in the main network. Starting from this moment, no possible changes can be made to the block in any way.

Experts say that blockchain technology is another step into an easier and safer future. Thanks to this technology, it is possible to store absolutely any information. Such technology is considered to be in demand in places where it is necessary to keep records, synchronize information. Even today, it is used in the implementation of projects of a private and public nature.

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The essence of the Bitcoin system and blockchain technology lies in the source code, which is open source. This property ensures the usefulness of the communication node for any user and making changes to the system. Additionally, using the source code of Bitcoin, a huge number of other cryptocurrencies and projects were developed.

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An individual electronic signature deserves special attention, which is assigned to each user of the system when he registers his own wallet for cryptocurrency. The signature is in some way a password at the entrance to the wallet, as well as a code word used to confirm any actions that occur in the wallet. The electronic signature acts as a hash function of the public address of the account in the Bitcoin system, which includes a combination of several characters.

Advantages of Bitcoin (BTC)

The significant advantages of cryptocurrency include the following points:

Brand recognition

The degree of popularity and popularity of the Bitcoin system today is beyond the limits. Almost everyone has heard about such cryptocurrency from various sources – news on TV, newspapers, magazines, the Internet, videos on YouTube. When pronouncing the word “bitcoin” there is no longer any need to further elaborate on its definition.

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Every person knows that with the help of such cryptocurrency and the system as a whole, you can make good money. If it speaks of large investments and business, then most offices will prefer to cooperate with Bitcoin than with another unknown coin. Why? Today, office owners can safely assume that Bitcoin will either increase in value or the sense of selling it on the market will appear in order to obtain its own benefit. If you take risks in favor of little-known coins, then you will have to wait a while,

Highly developed infrastructure

On many exchanges, bitcoins were traded long before the appearance of Ether, various tokens. Today, transactions with cryptocurrency can be done almost everywhere, even for fiat money from various countries.

Also, it is impossible not to mention the services that make it possible to introduce the acceptance of electronic coins on the websites of stores, companies that have access to receiving bitcoins. Buying and selling operations are usually carried out with the help of bitcoin, and later exchanging it for fiat money. The service also provides for wallets that serve users for more than one year, services that allow you to store bitcoins in the cloud.

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