Why Bitcoin deserves the attention it’s gotten.
The problem Bitcoin solves
There was a problem Bitcoin solved in a very genius way. The problem was to create a transparent currency that no institution controlled as well as its transactions. Second problem was the process of creating and managing this currency, who was going to be in charge?
The solution was to somehow make everything work with no one in charge. Get people to do lots of work and spend lots of normal money to create and maintain a robust system of virtual currency, and somehow get those people to be absolutely incorruptible. They’ll be in charge, but not tempted even a little to use their power to enrich themselves?
And Bitcoin solved this problem.
The core of Bitcoin
The core of the idea is the miners that are the heart of the Bitcoin engine.
Miners are volunteers because no one select them, they just do it because they wanted to, they get their hardware and software, and start mining. If you’re ever tempted to think about fiddling with the software, cheating and just taking a bunch of money (Bitcoin), you immediately think of the huge investment you’ve made in mining equipment, which isn’t good for much of anything except mining.
So, the miners are un-recruited, unmanaged groups who put up their own money and time to make money, and are thoroughly incented to play it straight, without cheating.
· First, the computing assures that each new transaction that someone tries to put in the ledger follows the rules. Simple rules that are essential to virtual currency working.
· Second, the computing puts a lock on the new transaction, a special intelligent lock that links to all the earlier locks on all the prior transactions. For ease of computing, the transactions are put together into blocks, and it’s actually the blocks that are locked up tight and chained together with cryptology. Thus the Blockchain got its the name.
Since all the miners run the same software, everyone must follow the same rules. These rules enforce the fact that, at any given moment, there are a known amount of Bitcoin, with the ledger tracking who owns how much. The number of Bitcoin is fixed – until a miner earns some as a result of the mining work. In that case, brand-new Bitcoin are created – according to an established formula – and deposited in the miner’s own account in the ledger. Once the miner has the earned Bitcoin, he can do anything he likes with it, like any normal owner of Bitcoin.
Finally, it’s true that the Bitcoin miners see every single transaction. Each transaction is vetted to assure that the rules are followed. With the block chain, all finalized transactions are available for everyone to see, however personal information is hidden because the owner is identified only by a very long string of letters, we call it a key.
This is how Bitcoin developed a solution to the problem of government-issued currency. Bitcoin protocol cannot be manipulated by any person, organization, or government. This is due to Bitcoin being cryptographically secure.
What do you think about future of Bitcoin and how it can affect your business? If you have your question, please write it below, I would be glad to answer your questions or to introduce your project to my team at Astorts Group to be evaluated.