Bitcoin is a virtual cryptocurrency where transactions happen directly between both parties. Evert transaction is recorded publicly on a distributed legder known as the blockchain.
How does it work ?
Bitcoin works similar to gold. Bitcoin have to mined a process where users compete users to offer their computing power to verify and record bitcoin transactions into the blockchain. Winners are rewarded with newly created bitcoin.
Bitcoin transactions function in a peer to peer meaing all transactions happen directly without an intermediary such a bank. To safeguard every transactions bitcoin instead relies on a public ledger that records bitcoin transactions i.e., the blockchain
Blockchain are inherently resistant to any modifications of the data. So once a transaction is recorded, the data in ablock and cannot be altered or tampered with. The blockchain records and stores every transaction automatically and autonomously.
Blockchain technology is capable of revolutionizing not only finance, but our entire lifestyle in ways we do not even understand yet.
One invented that has spawned from blockchain technology is Smart Contracts. Smart contract are contracts that can be partially or fully executed without manual involvement.
Smart Contracts allow developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contracts) and many other things yet to be created, all without a middleman or counterpart risk.
