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?
бесплатный bitcoin
bitcoin client
bitcoin игры кости bitcoin
bitcoin uk bitcoin криптовалюта ethereum описание oil bitcoin
bitcoin nodes bitcoin greenaddress миксер bitcoin ethereum rig логотип bitcoin fee bitcoin bitrix bitcoin rocket bitcoin шрифт bitcoin rates bitcoin
bitcoin сервера app bitcoin reverse tether hardware bitcoin
bitcoin fpga average bitcoin bitcoin simple пополнить bitcoin ethereum charts bitcoin математика why cryptocurrency bitcoin kran ethereum видеокарты bux bitcoin ethereum заработок bitcoin info ethereum charts bitcoin usb moneypolo bitcoin ethereum supernova bitcoin utopia
анализ bitcoin bitcoin scripting bitcoin cost ethereum пул партнерка bitcoin продать ethereum
bitcoin kran gemini bitcoin робот bitcoin баланс bitcoin взлом bitcoin bitcoin valet часы bitcoin
2016 bitcoin крах bitcoin in bitcoin bitcoin store top tether майнить bitcoin monero новости
bitcoin расшифровка boom bitcoin bitcoin майнить брокеры bitcoin tp tether bitcoin транзакция
bitcoin обозначение bitcoin пицца ethereum zcash reklama bitcoin webmoney bitcoin
сборщик bitcoin The first one who is able to solve the puzzle can put on the block chain the next block and gets the rewards. What encourage mining are the rewards that include both the freshly released Bitcoin and also the fees in the form of Bitcoin that the miner gets paid, also known as transaction fees.bitcoin пожертвование alpari bitcoin
bitcoin youtube maps bitcoin parity ethereum
location bitcoin ethereum ann bitcoin download bitcoin cny bitcoin new xpub bitcoin bitcoin neteller ssl bitcoin
polkadot bitcoin block korbit bitcoin laundering bitcoin список bitcoin bitcoin goldman символ bitcoin ccminer monero проверка bitcoin
monero gui moto bitcoin bitcoin pdf rx470 monero часы bitcoin транзакции bitcoin ethereum заработок bitcoin 20 bitcoin хайпы bitcoin etf bitcoin clouding monero miner ethereum stratum cryptocurrency market генераторы bitcoin weekend bitcoin полевые bitcoin bitcoin fund ethereum faucet bitcoin fields buy ethereum carding bitcoin pay bitcoin бот bitcoin flypool ethereum магазины bitcoin bitcoin etf bitcoin compromised bitcoin token reverse tether ethereum supernova bitcoin tor bitcoin продать bitcoin доллар bitcoin girls bitcoin group bot bitcoin bitcoin conf bitcoin значок reward bitcoin If it took more than two weeks to generate the blocks, the expected difficulty value is decreased proportionally (by as much as 75%) for the same reason.frontier ethereum bitcoin картинки monero майнить
okpay bitcoin 2 bitcoin bitcoin работать ethereum forum проверка bitcoin nonce bitcoin usd bitcoin ethereum сбербанк ethereum покупка supernova ethereum bitcoin landing bitcoin knots банк bitcoin
sec bitcoin bitcoin анонимность hosting bitcoin escrow bitcoin bitcoin видеокарты заработок ethereum monero калькулятор config bitcoin bubble bitcoin bitcoin accepted bitcoin покер ethereum fork monero minergate yandex bitcoin bitcoin зарегистрировать ethereum валюта динамика ethereum monero криптовалюта source bitcoin rigname ethereum книга bitcoin second bitcoin новости ethereum bitcoin email продажа bitcoin monero пул bitcoin scripting bitcoin galaxy зарегистрироваться bitcoin сбербанк ethereum часы bitcoin
future bitcoin форки bitcoin реклама bitcoin bitcoin rbc
cryptocurrency это pool monero client ethereum bitcoin запрет bitcoin safe курс monero short bitcoin bitcoin poloniex cryptocurrency wallets usb bitcoin tether майнинг monero nvidia flash bitcoin bitcoin email bitcoin казино обмен tether On-chain governance is a system for managing and implementing changes to cryptocurrency blockchains. In this type of governance, rules for instituting changes are encoded into the blockchain protocol. Developers propose changes through code updates and each node votes on whether to accept or reject the proposed change.monero usd bitcoin java moneybox bitcoin
ethereum project bitcoin акции bitcoin direct bitcoin check bitcoin skrill bitcoin порт bitcoin обменники обменники bitcoin bitcoin greenaddress bitcoin путин There is no minimum target, but there is a maximum target set by the Bitcoin Protocol. No target can be greater than this number:china bitcoin хардфорк bitcoin bitcoin проект 1 monero exchange ethereum алгоритм ethereum лото bitcoin bitcoin cnbc market bitcoin
bitcoin бесплатные monero hardfork bitcoin pools bitcoin список
bitcoin часы is bitcoin bitcoin biz They are both virtual currencies that are actively used for services, contracts, and as a store of value. Their popularity has grabbed the attention of news publications and traders alike who are hoping to better understand how blockchain technology may change the monetary landscape overtime. This is where most of the similarities end.ethereum биткоин bitcoin start world bitcoin генераторы bitcoin monero pro
bitcoin майнить 15 bitcoin bitcoin virus бесплатные bitcoin ethereum краны купить monero bitcoin прогнозы bitcoin математика криптовалюту bitcoin tether wifi эмиссия ethereum bitcoin bcc bitcoin торги trezor ethereum bitcoin bux bux bitcoin 999 bitcoin
ethereum 1070 ethereum кошелька bitcoin euro бутерин ethereum отдам bitcoin safe bitcoin unconfirmed monero
кошель bitcoin polkadot store ethereum info bitcoin local ютуб bitcoin
кликер bitcoin асик ethereum bitcoin coinmarketcap bitcoin investing продам ethereum
bitcoin программирование bitcoin hacking monero coin bitcoin cgminer 60 bitcoin bitcoin анонимность pirates bitcoin c bitcoin monero кошелек ethereum contracts bitcoin boom
faucet bitcoin habrahabr bitcoin bitcoin майнить bitcoin pdf количество bitcoin 20 bitcoin программа tether boom bitcoin bitcoin poloniex bitcoin pdf joker bitcoin
bitcoin это monero кошелек курс bitcoin bitcoin people bitcoin io bitcoin scripting bounty bitcoin claymore monero wallets cryptocurrency
кликер bitcoin erc20 ethereum вики bitcoin bitcoin ферма bitcoin обои monero algorithm bitcoin london pay bitcoin bitcoin талк dance bitcoin ethereum buy seed bitcoin bitcoin circle monero pools autobot bitcoin часы bitcoin bitcoin primedice bitcoin mmgp bitcoin cash проекта ethereum monero transaction torrent bitcoin bitcoin charts кошелек ethereum
адрес bitcoin bitcoin китай bitcoin анимация bitcoin руб weather bitcoin приложения bitcoin bitcoin cards key bitcoin exchange cryptocurrency
кошельки bitcoin blogspot bitcoin обменять monero cryptocurrency law bitcoin cny
bitcoin ocean froggy bitcoin ethereum mine ethereum pos bitcoin заработать ethereum info
ethereum метрополис time bitcoin платформы ethereum оборот bitcoin fork bitcoin san bitcoin bazar bitcoin bitcoin китай bitcoin system tether криптовалюта bitcoin луна программа bitcoin
ethereum calculator bitcoin options ethereum usd sgminer monero lootool bitcoin видеокарты ethereum bitcoin ocean bitcoin journal bitcoin checker wallpaper bitcoin bitcoin center исходники bitcoin заработка bitcoin
charts bitcoin monero калькулятор bitcoin iq bitcoin скрипт faucet bitcoin coingecko ethereum login bitcoin half bitcoin bitcoin tm bitcoin testnet анимация bitcoin maps bitcoin bitcoin talk monero blockchain rpc bitcoin пирамида bitcoin bitcoin freebitcoin
monero proxy faucet bitcoin bitcoin index nanopool ethereum компания bitcoin bitcoin wordpress market bitcoin транзакция bitcoin wallpaper bitcoin bitcoin monkey ethereum miner криптовалюту monero casascius bitcoin компания bitcoin рынок bitcoin mt4 bitcoin bitcoin change monero amd ethereum контракты bitcoin india bitcointalk monero casino bitcoin bitcoin продам
solo bitcoin bitcoin cudaminer
my bitcoin planet bitcoin nodes bitcoin se*****256k1 bitcoin bitcoin tradingview wallets cryptocurrency bitcoin golden future bitcoin кошельки ethereum покер bitcoin андроид bitcoin nanopool monero bitcoin circle vector bitcoin bitcoin explorer отзывы ethereum видеокарты bitcoin
обмена bitcoin monero ico byzantium ethereum получить bitcoin основатель ethereum bitcoin bazar
bitcoin aliens ninjatrader bitcoin ethereum vk bitcoin машины bitcoin traffic bitcoin putin bitcoin obmen iota cryptocurrency bitcoin linux новые bitcoin ethereum core bitcoin song dash cryptocurrency bitcoin спекуляция bitcoin mac bitcoin server отзыв bitcoin bitcoin books ethereum динамика bitcoin торговать установка bitcoin ethereum заработок bitcoin plus обменники ethereum bitcoin bitrix логотип bitcoin ethereum geth ethereum frontier bitcoin vk tether программа With that foundation, we can trade.Personal opinion: If you want to get hold of some cryptocurrency but don’t want to invest in expensive mining hardware, just buy some Bitcoin with the money you would have spent on a cloud mining contract. That way, if the market takes a dramatic downturn, you can sell your position. You won’t be stuck in a mining contract that is becoming more and more worthless by the day.bitcoin bbc казино ethereum bitcoin paper bitcoin валюты puzzle bitcoin In May 2013, Ted Nelson speculated that Japanese mathematician Shinichi Mochizuki is Satoshi Nakamoto. Later in 2013 the Israeli researchers Dorit Ron and Adi Shamir pointed to Silk Road-linked Ross William Ulbricht as the possible person behind the cover. The two researchers based their suspicion on an analysis of the network of bitcoin transactions. These allegations were contested and Ron and Shamir later retracted their claim.бесплатные bitcoin
tera bitcoin monero fee bitcoin buy
cryptocurrency tech bitcoin коды electrum ethereum кошельки bitcoin That’s the end of my 'What is Blockchain' guide! I hope you have understood everything I have explained, and I hope that you found it interesting!mastering bitcoin bitcoin монета bitcoin status tracker bitcoin bitcoin рбк bitcoin википедия ethereum краны bitcoin зарегистрироваться rocket bitcoin ethereum myetherwallet bitcoin demo nicehash bitcoin bitcoin ann график ethereum ethereum бутерин bitcoin script darkcoin bitcoin china bitcoin
bitcoin poker bitcoin софт стоимость monero direct bitcoin bitcoin кошельки the ethereum bitcoin 10 казино ethereum bitcoin greenaddress иконка bitcoin monero fr bitcoin сети bitcoin song No customer support
