Our thoughts about money transfers, online monetary transactions, online identity, etc have all undergone major transformations because of the blockchain technology and Bitcoins. This has necessitated an urge amongst crypto enthusiasts to invest in cryptocurrencies. To do, there are some key topics that one would have to pay attention to, like how the blockchain works, what Bitcoin mining is all about, how the Bitcoin originated, whether Bitcoin has real-life business applications, and what the future holds for the Bitcoin.
Top 5 Bitcoin and Blockchain Topics for You to Look At:
- The Bitcoins originated in 2009 when an anonymous person or group of persons launched this coin. But, the identity of the creator Satoshi Nakamoto still remains shrouded in mystery. The idea behind the Bitcoin was to start a peer-to-peer payment system without intermediaries. When Satoshi strangely disappeared, developers took over the Bitcoin and it emerged as an open source code viewable by the public. Bitcoin can be subdivided into 100,000,000 units and each unit is programmable into units of currency or stock. The blockchain is the public ledger of Bitcoin transactions that is published for a network of computers part of the blockchain. Every block mined is added to the blockchain after being verified by the network of computers.
- The blockchain is the technology on which the Bitcoin was established. It refers to an interconnected cluster of computers or nodes that verify transactions. Every node has a copy of the ledger, and for transactions to be approved; every node has to agree with the others. Miners will be rewarded with Bitcoins when they solve complex mathematical problems through mining. The combination of transparency and decentralization makes this blockchain a fool-proof financial system. The open source blockchain needs a base of “miners” who will verify transactions. Miners can be individuals or groups of individuals who will contribute computing power for hosting the ledger and verifying the transactions. All Bitcoins in circulation and all transactions recorded will be viewable by people and get updated in real-time.
- Bitcoins are an investment option and this topic deserves to be studied in-depth. Earlier, when the network had to expand, the power required was not much for solving computational problems. This indicated that people could easily invest in mining and this would bring them good returns. However, with time, mining grew into a highly energy-intensive process and people were joining cloud mining to make money. This automatically meant that lesser number of individuals was running mining farms on their own. While value of Bitcoins may have escalated, mining has become less popular.
- Bitcoins are not only becoming accepted these days as a currency, even the blockchain is becoming popular as an innovative and groundbreaking technology that finds use in different industries. Businesses like Nasdaq LINQ have come up as a trading platform for pre-IPO companies. Open Bazaar has open source projects for building a decentralized network to facilitate peer-to-peer trades. It connects buyers and sellers directly unlike Amazon or eBay that work as middlemen. Here, Bitcoins are stored in multi-signature that will hand out payments only when two out of three parties agree to sign off. The contracts are signed digitally while payments are kept in multi-sig till the goods arrive.
- Finally, you need to delve into whether Bitcoin and the blockchain have a future. With blockchain, all your IDs will be under your control; you get to store your personal information and passwords in a blockchain safely. These ID services can in future be used in medicine, government services and also by record-keeping agencies.