hello friends of steemit I bring you a little guide on bitcoin, well, the point is that this guide will be separated into 2 or 3 parts so that it does not become very tedious.
in these times the bitcoin has taken to the surprise, attracting the cryptocurrencies in view of the public and changing the way of thinking about money.
As we already know in these times it is very difficult to speak of cryptocurrencies without having to talk about Bitcoin. From very humble origins and with the aim of breaking the government's control over public finances, Bitcoin has grown to become a power in the financial sector. More and more merchants, companies and even governments are adopting the currency, and the blockchain technology behind it, in ways that the creator of Bitcoin might not have imagined.
in this guide we will analyze the following points
What is Bitcoin? A brief and small story
How does Bitcoin work?
Bitcoin mining and block verification
What is the bitcon? short and small story
As we all know Bitcoin started as a document written by its creator, Satoshi Nakamoto, entitled: "A person-to-person electronic cash system" (2008). In it, Satoshi - whose real identity remains unknown until now (July 2018) - details a system to decentralize the financial sector, with the aim of returning power to people through a fully digital transaction system (what more later it would be known as the chain of blocks). In January 2009, Satoshi extracted the first block for 50 bitcoins. Although it is still directly involved in the development of Bitcoin, it is rumored that Satoshi has extracted almost 1 million bitcoins, an amount that, only 8 years later, would be worth more than $ 5.8 billion US dollars.
How does Bitcoin work?
Before starting to use Bitcoin, it is important to understand how technology works and the reasoning behind it. Not only will this save you some long-term headaches, but it will give you a greater appreciation of what goes on behind the scenes.
Bitcoin mining and block verification
The key problem that will be solved next is the idea of transaction verification. While there is no central authority that can decide whether a transaction is legitimate or fraudulent, there must still be a system to resolve this. Bitcoin provides this solution through mining. The miners (who are computer experts and not people who work with pickaxes), carry out the complex work of mining.
Using powerful processors called ASICs (Specific Integrated Circuits for Applications), the miners receive a block of transactions and solve a computationally difficult mathematical puzzle in that block. The details of this puzzle are beyond the scope of this beginner's guide, but suffice it to say that, once solved, this conundrum guarantees that the transactions in the block are valid and can be considered verified.
Once extracted, the miner who solves the puzzle connects the block to the block chain and receives a small amount of Bitcoin for the job. Today's mining is highly competitive, and miners have to use the latest integrated specific circuits for applications (ASIC) in the market, otherwise, the cost of energy consumption to solve the puzzle outweighs the rewards.
