Bitcoin is an electronic currency that allows payments to be made through the Internet and is characterized by the fact that it does not depend on a central entity, and can be transferred directly from person to person without intermediaries.
Its rapid expansion has caused it to be accepted to pay for services and consumption in businesses throughout much of the world. Even formal banking has already begun to treat it as one more asset.
The technologies that support Bitcoin
For its creation, different digital technologies were brought together, including cryptography and P2P network technology, but one of those that gives it security and reliability is Blockchain technology.
What is Blockchain?
The Blockchain is an advanced mathematical system that acts as an infallible accounting system for all transactions made with the currency.
Blockchain is essentially a decentralized and public database that stores transactions made with bitcoins.
The entire history of transactions is replicated in each of the computers that participate in the Blockchain and is validated by themselves through complex mathematical operations.
Cryptography and a chain of blocks intervene in this validation, which gives its name to Blockchain technology and makes the accounting book unalterable.
How does Blockchain work?
From an original transaction, a record (block) is created for each new subsequent transaction. This block includes a timestamp, a fingerprint strongly protected by cryptography and also refers to the fingerprint of the previous block so they are connected to form a chain.
At the end of a validation process, the block chain (the accounting book) is automatically updated throughout the Blockchain network, making it almost impossible to falsify it without the consent of the other participants.
But what is a bitcoin?
Both the currency and the protocol (software) to create it were devised by an obscure character named Satoshi Nakamoto whose whereabouts are currently unknown. His objective was none other than to encourage money transactions without the intervention or control of an intermediary entity.
Bitcoins are generated by an activity known as mining and that works within the platform. This activity consists of validating transactions in exchange for a reward in the same currency or fractions thereof. Once these new units are generated, they are placed on the market.
The first transaction (genesis block) generated by the Satoshi Nakamoto gave a reward of 50 BTC (bitcoins). From this movement of money, the following mining activities began within the platform, always based on Blockchain technology.
How much is a bitcoin worth?
The current value of this cryptocurrency, also named after the cryptographic systems that protect it from counterfeiting, fluctuates based on supply and demand. However, it is estimated that in 2025 it will cost $100,000.
If you want to know its current value, you can use various bitcoin calculators that work online. For this, just do a search on Google, Bing, Yahoo or the web search engine of your choice.
Image by 3D Animation Production Company from Pixabay