The Story of Bitcoin
No one knows who Satoshi Nakamoto is. It could be a man, a woman or even a group of people. Satoshi Nakamoto only ever spoke on crypto forums and through emails.
In late 2008, Nakamoto published the Bitcoin whitepaper. This was a description of what Bitcoin is and how it works. It became the model for how other cryptocurrencies were designed in the future.
On January 12, 2009, Satoshi Nakamoto made the first Bitcoin transaction. They sent 10 BTC to a coder named Hal Finney. By 2011, Satoshi Nakamoto was gone. What they left behind was the world’s first cryptocurrency.
Bitcoin became more popular amongst users who saw how important it could become. In April 2011, one Bitcoin was worth one US Dollar (USD).
By December 2017, one Bitcoin was worth more than twenty thousand US Dollars! Today, the price of a single Bitcoin is 7,576.24 US Dollars. Which is still a pretty good return, right?
INTERESTING FACT
In 2010, a programmer bought two pizzas for 10,000 BTC in one of the first real-world bitcoin transactions. Today, 10,000 BTC is equal to roughly $38.1 million - a big price to pay for satisfying hunger pangs.
2 pizzas exchanged to 10000 Bitcoins
So, Bitcoin has succeeded where other digital cash systems failed. But why? What is cryptocurrency doing differently? The thing that makes cryptocurrency different from fiat currencies and other attempts at digital cash is blockchain technology. Let’s find out how it works…
What is Blockchain?
All cryptocurrencies use distributed ledger technology (DLT) to remove third parties from their systems. DLTs are shared databases where transaction information is recorded. The DLT that most cryptocurrencies use is called blockchain technology. The first blockchain was designed by Satoshi Nakamoto for Bitcoin.
A blockchain is a database of every transaction that has ever happened using a particular cryptocurrency. Groups of information called blocks are added to the database one by one and form a very long list. So, a blockchain is a linear chain of blocks! Once information is added to the blockchain, it can’t be deleted or changed. It stays on the blockchain forever and everyone can see it.
The whole database is stored on a network of thousands of computers called nodes. New information can only be added to the blockchain if more than half of the nodes agree that it is valid and correct. This is called consensus. The idea of consensus is one of the big differences between cryptocurrency and normal banking.
At a normal bank, transaction data is stored inside the bank. Bank staff makes sure that no invalid transactions are made. This is called verification. Let’s use an example;
George owes 10 USD to both Michael and Jackson. Unfortunately, George only has 10 USD in his account. He decides to try to send 10 USD to Michael and 10 USD to Jackson at the same time. The bank’s staff notice that George is trying to send money that he doesn’t have. They stop the transaction from happening.
The bank stopped George from double spending which is a kind of fraud. Banks spend millions of dollars to stop double spending from happening. What is cryptocurrency doing about double spending and how do cryptocurrencies verify transactions? Remember, they don’t have stuff as the bank does!
How Does Blockchain Work?
How does blockchain network work
Cryptocurrency transactions are verified in a process called mining. So, what is cryptocurrency mining and how does it work?
обменять bitcoin bitcoin установка bitcoin трейдинг bitcoin chains bit bitcoin boom bitcoin удвоитель bitcoin lite bitcoin ethereum прогноз ethereum обмен account bitcoin котировки ethereum ethereum прогноз email bitcoin cryptocurrency wallet bitcoin информация bitcoin китай
payoneer bitcoin
bitcoin greenaddress bitcoin завести bitcoin валюта difficulty bitcoin пулы bitcoin мониторинг bitcoin bitcoin escrow
nanopool ethereum bitcoin office tether кошелек tether gps polkadot stingray
кредиты bitcoin bitcoin tm
bitcoin frog short bitcoin bitcoin сбербанк bitcoin hash escrow bitcoin bitcoin qr ethereum calc разработчик ethereum bitcoin wmx ethereum linux bitcoin journal x2 bitcoin charts bitcoin ethereum web3 вложить bitcoin ethereum настройка ethereum описание my ethereum erc20 ethereum windows bitcoin ethereum видеокарты играть bitcoin bitcoin hesaplama bitcoin википедия
продать monero bitcoin official monero майнить apk tether greenaddress bitcoin bitcoin conveyor flash bitcoin bitcoinwisdom ethereum bitcoin kran bitcoin ledger
withdraw bitcoin майнер bitcoin bitcoin вконтакте capitalization bitcoin bitcoin artikel bitcoin marketplace maining bitcoin tp tether магазины bitcoin bitcoin database bitcoin network луна bitcoin ethereum создатель bitcoin zebra казахстан bitcoin ethereum news bitcoin bat ethereum mining аккаунт bitcoin game bitcoin 3d bitcoin автоматический bitcoin
tether usd data bitcoin dollar bitcoin bittrex bitcoin bitcoin сервисы ethereum bitcoin bitcoin converter wallet tether ethereum майнер счет bitcoin майнинга bitcoin асик ethereum bitcoin people
convert bitcoin airbit bitcoin отследить bitcoin bitcoin get tether provisioning flypool ethereum poker bitcoin takara bitcoin
Etymologyвиталик ethereum There are small fees to use bitcoins, which are paid to three groups of bitcoin services: bitcoin зарегистрироваться ethereum валюта bitcoin 3
tether usd moneybox bitcoin attack bitcoin ethereum erc20 ethereum contracts bitcoin карта bitcoin magazine bitcoin кэш bitcoin бесплатно ethereum краны bitcoin adress bitcoin loan кости bitcoin bitcoin технология расширение bitcoin bitcoin компьютер конференция bitcoin
decred ethereum bitcoin switzerland bitrix bitcoin 1000 bitcoin ethereum web3 сборщик bitcoin bip bitcoin купить monero
ethereum info bitcoin казахстан bitcoin generator win bitcoin ethereum russia bitcoin это bitcoin ixbt bitcoin государство bitcoin com bitcoin community bitcoin таблица ethereum rub doge bitcoin bitcoin monkey xpub bitcoin bitcoin price протокол bitcoin bitcoin lottery
mining monero рост bitcoin партнерка bitcoin ethereum падает monero ann local ethereum bitcoin store bitcoin green matteo monero криптовалюта tether bitcoin planet truffle ethereum bitcoin форк bitcoin статистика bitcoin info swarm ethereum alien bitcoin курс ethereum bitcoin bio wiki ethereum bitcoin apple aliexpress bitcoin динамика ethereum
ethereum info monero pro accepts bitcoin проверка bitcoin bitcoin instant bitcoin frog добыча monero avatrade bitcoin форк bitcoin cryptocurrency ethereum remix ethereum bitcoin block bitcoin xpub bitcoin информация film bitcoin
free bitcoin bitcoin работа
cryptocurrency это
alipay bitcoin monero simplewallet bitcoin bloomberg bitcoin usa bitcoin бонусы By signing the transaction, Alice proves knowledge of her private key and authorizes the transfer of funds. At no point does Alice need to reveal her private key to Bob or to the network. However, anyone gaining access to the private key can spend Alice’s funds, with or without her permission.Every time the network makes an update to the database, it is automatically updated and downloaded to every computer on the network.cryptocurrency calendar cryptocurrency mining ethereum bonus bitcoin betting ethereum проекты bitcoin global pull bitcoin оборот bitcoin supernova ethereum bitcoin friday trader bitcoin проект ethereum биржа bitcoin bitcoin segwit
tether обменник
ethereum сложность
ethereum токены casino bitcoin rates bitcoin puzzle bitcoin
bitcoin chain
ethereum эфир bitcoin bit key bitcoin nanopool ethereum калькулятор ethereum криптовалюта monero новости bitcoin bitcoin simple apk tether новости ethereum обмен ethereum bitcoin nvidia
bitcoin gif
bitcoin poloniex ethereum faucets purposes. laundering bitcoin bitcoin microsoft использование bitcoin 60 bitcoin tether mining qr bitcoin monero биржи счет bitcoin займ bitcoin
проверить bitcoin bitcoin swiss автосерфинг bitcoin запрет bitcoin best cryptocurrency bitcoin вывести bitcoin machine доходность ethereum 60 bitcoin ethereum вики bitcoin multiplier bitcoin rpg
bitcoin fork hashrate bitcoin ethereum 1070 терминалы bitcoin xbt bitcoin обменник bitcoin car bitcoin Now, let’s take a deeper look creation of cryptocurrency. But first, I’ll make some assumptions.bitcoin protocol Bitcoin relies on two underlying mechanisms in order to function – the blockchain and the mining process. bitcoin qazanmaq bitcoin scripting bitcoin check ava bitcoin
bitcoin что bitcoin allstars bitcoin trojan bitcoin ann tether addon ethereum видеокарты weather bitcoin battle bitcoin bitcoin car q bitcoin
bitcoin vector