Bitcoin : The disruptive technology of 21st century
In this blog, I will tell you about the Bitcoin, which is the most exciting and disruptive technology in the field of Computer Science since the discovery of internet.
Bitcoin is a digital money. But not only that, it is one of the applications of blockchain. There are lot of applications that are yet to be imagined. It itself is a technology, international network of payments which is completely decentralized. It is not governed by any bank or rely on any government.
It is not owned by any government or organisation and you can send the bitcoins from one place of the world to another place of the world almost instantaneously, securely and for minimal fee.
In April, 2020 someone according to blockchain transfer details transferred 161,500 BTC (~11 thousand 500 crore INR) for a fee of only 0.00010019 BTC (~70 INR) and that too in just 1 sec. I just gave this example to show you how powerful and disruptive this technology is and can be in terms of international payment systems.
History of bitcoin
Bitcoin claims to solve the Byzantine Generals Problem, which was first described in 1982 and it was unsolved till 2008. In 2008, Satoshi Nakamoto (unidentified – individual / group of persons) claimed to solve this problem and publish a software which allowed people to start building bitcoin network.
Bitcoin is a digital currency that came into existence in 2008 as an invention by a person called Satoshi Nakamoto. He published a paper in which he stated that he had found a way to create a decentralized network to make consensus in a distributed system which is not controlled by any authority.
Bitcoin is simply a protocol and not owned by people or any organisation. There are certain mathematical rules on which every participant agrees on.
So if i send some money through this decentralized network, there’s is no one in the middle and in every ten minutes, the entire network agrees on what transactions have happened.
Blockchain is a public ledger that was developed to record bitcoin transactions. It is basically a list of records called blocks, which are linked together using cryptography.
Each block contains a cryptographic hash of a previous block and timestamp of a transaction.
BTC is used to represent a bitcoin, however smaller units of a bitcoin can be represented as a mBTC (millibitcoin) equals 0.001 bitcoins and sat (satoshi) smallest amount within bitcoin representing 0.00000001 bitcoins.
Currency is just the first application of this invention, there can be more important implementations of this technologies that are yet to be imagined. We could have applications like fair voting, stock ownership and much more.
The invention of bitcoin creates the possibilities for decentralized organisation on a large scale that have not seen before.
Thank you for reading this.