April 13 2022
Blockchain - bitcoin cryptocurrency of the future, how it works.
Blockchain is a log of all the records that have ever been made with bitcoins. This is a technology that forms blocks every 10 minutes and sequentially writes them to a common log, the blocks store information about transactions with bitcoins for these 10 minutes.
On all computers that participate in bitcoin mining, a complete log of all cryptocurrency transactions for all time is stored. The main task of miners is to confirm transactions that people make and form a new block in the blockchain (journal), for which they receive a reward by providing the computing power of their computers.
The blocks that are written to the blockchain are written sequentially and linearly, the computer that solves the complex problem of nonlinear equations the fastest and writes the block to the blockchain and receives a reward, thereby confirming the transaction made by another person and issuing new bitcoins, that is, bitcoin is issued.
Given the increase in the number of computers that participate in mined (mining) the underlying algorithm complicates the equation. After confirmation by several miners of the operation with bitcoin, the operation is considered completed.
At the moment, in 2017, 12.5 bitcoins are issued in one block, which is equal to 59,153 USD at the rate of 08.31. who solves the equation and receives the given reward.
But do not be fooled by quick earnings and run to a computer store to buy a computer for mining, because given the complexity of the basic algorithms, now only a whole pool of computers that are linearly connected and take part in solving the equation can solve this equation the fastest.
At the time of writing, a “small” mining farm on the market costs from $3,000 on average, while the probability of creating a block on such a farm in the blockchain is negligible.
For ease of perception, imagine that you publicly announce that you are giving away a certain thing to your friend and those people to whom you say this approve this operation and they are ready to confirm it, if necessary.
The bitcoin wallet that is installed on the computer also allows you to see the entire log of bitcoin transactions.
It is the bitcoin blockchain technology that allows you to get rid of intermediaries in cryptocurrency transactions, that is, there is no need for a bank or any other financial institution that will participate in the operation as a third party.
- And a log of all bitcoin transactions
- And the technology of accounting transactions with bitcoins without the involvement of a third party
- And a public distributed base of all operations
- A cryptographic mechanism that does not allow the problem of double spending (using the same amount, the same money in different transactions)