What is Bitcoin’s Blockchain?

 

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What is Bitcoin’s Blockchain?

Bitcoin blockchain is the first and one of the largest blockchain that records Bitcoin transactions. bitcoin is just a native currency of Bitcoin Blockchain.

Bitcoin with a capital letter ‘B’ is a platform that carries a digital cash or currency called bitcoin with a lowercase ‘b’

Bitcoin is a distributed digital ledger called Blockchain, so when we say bitcoin Blockchain we mean a distributed digital ledger that runs the Bitcoin protocol

Bitcoin was first released in January 2009 as open-source software. being released as open-source software it allowed people to download, and read its blockchain and come up with their own different blockchains that go beyond Bitcoin itself as you can see today we have a lot of cryptocurrencies with different blockchain knowledge but both steal the knowledge from satoshi Nakamoto who is the founder of Bitcoin Blockchain and improve to create their own system

 Anyone can run the Bitcoin protocol and mine the token because it is an open-source software that allows any to participate in the mining process.

Bitcoin networks become secure because of the large number of independent nodes that participate in the mining process that are globally distributed.

What is the difference between Bitcoin, Bitcoin’s Blockchain, and Bitcoin with lowercase ‘b’ and Blockchain technology?

- Bitcoin with an uppercase B refers to the software that facilitates the transfer of Bitcoin currency, which starts with a lowercase b.

- Bitcoin equals software.

-bitcoin equals currency.

-Bitcoin’s Blockchain is a database that records the flow of Bitcoin transactions

-Bitcoin’s blockchain is a distributed, cryptographic, and immutable database

-Bitcoin’s Blockchain uses a proof-of-work consensus mechanism to make the network secure and avoid double spending problems.

Distributed P2P Network

-Being distributed allows computers from different locations to join the network and start to validate the Bitcoin transaction by solving proof of work problems.

-It is a way in which computers access and maintain Bitcoin’s Blockchain

-Normal old databases we always use to control who can access which information because they are not distributed so that any can join instead they are centralized and placed in one place where are monitored and controlled.

-This feature makes bitcoin as a global currency because can be accessed anywhere by anyone without any limitation or failure.

Everyone around the world wherever they are can join Bitcoin’s Blockchain to see the record of bitcoin transactions of different accounts. This ensures trust because everything is transparent and seen globally to anyone.

Cryptographic

Cryptography is the science of creating secure communication. It involves taking information and scrambling it in such a way that only the intended recipient can understand and use that information for its intended purpose.

The process of scrambling the message is encryption, and unscrambling it is decryption, performed through complex mathematical techniques

Every transaction recorded in Bitcoin’s blockchain must be cryptographically verified to ensure that people trying to send Bitcoin actually own the Bitcoin they are trying to send.

Cryptography also applies to how groups of transactions are added to Bitcoin’s blockchain. Transactions are not added one at a time, but instead in “blocks” that are “chained” together, hence the term blockchain

Immutable

Once information gets added to a Bitcoin’s Blockchain becomes permanently recorded forever and cannot be removed, erased or no one can change such information. This is because after the transactions are validated by miners, they can be added in an append-only fashion, in which information added cannot be reversed or removed.

No information in any past block, even if it was created years ago, can be changed without changing all of the blocks after it.

Proof-of-Work

Proof-of-work(PoW) combines the concepts of a distributed, cryptographic, and immutable database, and is how the distributed computers agree on which group of transactions will be appended to Bitcoin’s blockchain next.

PoW mainly deals with how transactions are grouped in blocks, and how those blocks are chained together, to make Bitcoin’s blockchain

Computers or miners compete with each other by solving complex mathematical cryptographic problems, the one who succeeds in finding the solution is a winner and is rewarded some amount of bitcoins for doing the job, and this is how new bitcoins are generated from the Bitcoins’ Blockchain by a process of mining because mining is nothing in Bitcoin’s Blockchain that solving proof-of-work problem and get rewarded bitcoins for doing the job.

Each time miners add a block, they get paid in Bitcoin for doing so, which is why they choose to compete in the first place. This Competition for a financial reward is also what keeps Bitcoin’s blockchain secure

If any bad actors want to change Bitcoin’s Blockchain, they would need to compete with all other miners distributed globally who have invested millions of their money into equipment and machines necessary to perform proof-of-work

The miners compete with each other by finding the solutions to a cryptographic puzzle which when found can be able to add such a block of transactions to a Bitcoin’s Blockchain and reward the amount of bitcoins.

The solution to the cryptographic puzzle needs to combine four variables which are time, type of transaction, Hash of the previous block, and a nonce.