Bitcoin P2P Network : An electronic money system that is independent of intermediaries
It is no exaggeration to say that the Internet has changed our lives. Who could have imagined that after reaching the Massachusetts Institute of Technology researcher Lawrence G. Roberts in 1965, connecting two computers over a dial-up telephone line, the world would change dramatically? Today we know about some of the technologies that have revolutionized many areas of our lives. One such technology is Blockchain.
Of course, you have heard a lot about this technology, but it is likely that you still do not know how it works and revolutionizes the global economy.
Blockchain is a technology that supports bitcoin, the most famous cryptocurrency today. The cryptocurrency network of bitcoins arose at the end of 2008, when Satoshi Nakamoto published his work on the study of electronic money. The Bitcoin P2P network has become an electronic money system that is independent of intermediaries.
Bitcoin is not the only cryptocurrency that exists on the digital market. After the emergence of bitcoin, many other digital coins were created, which were called Altcoins (for example, Litecoin and Dogecoin). Currently, one of the cryptocurrencies that has a strong position in the digital market is Ether. All digital currencies have one common feature: they are supported by the Blockchain network.
Blockchain: A digital event register that is shared between different nodes
Blockchain, in fact, is a system with which you can make secure transactions between people around the world without intermediaries.
Marc Andrissen, creator of Netscape Communications Corporation and partner of Andreessen Horowitz, one of Silicon Valley’s most important venture capital funds, has identified Blockchain technology as a digital event register that is shared between different network nodes.
Block chains can only be updated with the consent of most participants in the system, which are called nodes and, in fact, are computers designed to conduct transactions. Information in a blockchain can never be deleted or changed, so the Blockchain is represented as an unchanging and permanent record.
The Blockchain network arose because of the need to liquidate intermediaries such as banks (in the case of financial transactions). In the blockchain, the information does not belong to one participant, but to millions of users of the system. This is a large database in which many nodes store a copy of the information received on the network. Blockchain bases certification of information on consensus.
Each transaction made is added to the chain as a block. Therefore, entries in the blockchain are interconnected and encrypted to protect both security and transaction privacy. It also means that operations in the blockchain are anonymous. The capacity of a block in a block chain depends on the structure of the distributed register network and on the size of each transaction.