Bitcoin often referred to as digital gold, is a decentralized digital currency that enables peer-to-peer transactions without the need for intermediaries such as banks or governments.
It works on a technology called blockchain, which is a distributed ledger that records all transactions securely and transparently. Bitcoin transactions are cryptographically verified by network nodes and recorded on the blockchain, ensuring immutability and security.
The Bitcoin Blockchain Technology
Blockchain is the underlying technology behind Bitcoin and acts as a public ledger that records all transactions ever made on the network. Each block in a blockchain contains a set of transactions, creating a chronological chain of blocks with reference to the previous block. This decentralized and tamper-proof nature of the blockchain ensures the integrity and transparency of the Bitcoin network.
Bitcoin Mining
Bitcoin mining is the process by which transactions are verified and added to the blockchain. Miners use special hardware called proof-of-work to solve complex mathematical puzzles to validate transactions and secure the network. In return for their efforts, miners are rewarded with new bitcoins and transaction fees, which incentivize them to continue supporting the network.
Halving
Bitcoin halving is a scheduled event that occurs approximately every four years, during which the reward for mining new blocks is halved. This event is programmed into the Bitcoin protocol and serves to control inflation by reducing the rate at which new Bitcoins are introduced into circulation. Halving events have historically been associated with increased volatility and price increases in the Bitcoin market.
Bitcoin Keys and Wallets
