Bitcoin and blockchain technology are a subject that never ends to learn. Being a relatively new phenomenon that affects various industrial, social and economic sectors, much remains to be discovered in this regard. Therefore, in CriptoNoticias we collect a series of essential questions, often asked by those who are discovering Bitcoin for the first time. Are you looking for bitcoin news?
What is bitcoin?
Bitcoin is two things. On the one hand, we can refer to Bitcoin as a computer protocol or software executed over a decentralized p2p network called blockchain, where a shared record of all transactions made is stored, as well as any type of information. This means that the participants of the network interact with each other without crossing any intermediary, allowing also reviewing the transaction history in real time without any limitations.
On the other hand, this network has a chip known as cryptocurrency in the cryptocurrency market which we also call bitcoin (in this case with a lowercase b) and in the market, it is known under the acronym BTC. Bitcoin was thought of as a digital payment method that would serve as money. However, at present, it has not been used for these purposes, as much as it is used as a mechanism to safeguard financial values and to speculate with capital investments. A more detailed answer can be found here.
Its endorsement is the confidence in the blockchain network and its capabilities, instead of relying on a material asset such as gold or silver. Knowing that behind each transaction, thousands of computers provide security and transparency and that their shared registry is immutable are some of the reasons why blockchain has emerged as a technology capable of displacing storage platforms currently in force.
Who manages or controls this network?
Bitcoin does not have an owner that can make decisive decisions in its destination. This blockchain was created by the person or persons who identify themselves with the name of Satoshi Nakamoto. The decentralized network is managed by the miners, computer servers that, based on cryptographic algorithms, process thousands of transactions per day without stopping and charge a commission in BTC for this work. These servers are managed by ordinary people who have invested in the acquisition of specialized technological equipment, currently necessary to carry out this task.
Who traces the bitcoins and records the transactions?
The miners are the blockchain workers, basically. They are responsible for recording the various transactions in the network, ensuring that each cryptocurrency is unique and that this information is shared with all other participating miners in the community. In cryptocurrency mining, computer equipment with a high level of processing is used, which, through the solution of algorithms after performing complicated mathematical calculations, guarantees that the transactions are real and safe.