Bitcoin Blockchain | All about the Blockchain


Bitcoin uses a public and distributed “accounting system” or “general ledger” known as a block chain. Blockchain technology is perhaps the greatest innovation Bitcoin has to offer. Countless companies and service providers, especially from the financial sector, are showing interest in the technology and are even toying with the idea of using it for themselves.

A blockchain is a decentralized, unchangeable and continuously growing database.

A major strength of Blockchain technology is its ability to securely distribute information. The information is distributed to several nodes or computers, which is why the blockchain technology is often called “distributed ledger technology”.

The database is not stored and controlled in one place as with central providers, but by several thousands of computers simultaneously. If you want to change the database, you would have to change every single copy on every computer.

In addition, the Bitcoin network checks the accuracy of all data at certain intervals.

Blockchain and Blocks on Bitcoin Code

The data sets that are added to a blockchain become “blocks”. Since these blocks are cryptographically concatenated, it becomes difficult to manipulate these data sets and is almost impossible. It would require enormous computing power to manipulate the blocks.

With Bitcoin, one block is created every ten minutes and chained to the previous block. The processing of these data records is called mining. And this stringing together creates a chain of blocks, a block chain.

Which data does a Bitcoin Trader contain?

The bitcoin blockchain usually contains transaction data from various transfers, a timestamp and a hash of the previous block.

What problem does Bitcoin and Blockchain technology solve?
In the real world, it’s easy to prove whether you own something or not. Things get more difficult when they’re digital. An example:

I have a digital dog and I would like to give it to you as a present. So I send onlinebetrug present Bitcoin Trader the digital dog to you. But how can you be sure that the digital dog is yours alone? And can you be sure that I didn’t send the digital dog as an e-mail attachment to Anna before? Maybe I copied the digital dog several times or put it online. With digital things, it gets harder to prove that something belongs to me or to you.

That’s why you need an accounting system. So I buy a book that is now the general ledger for digital transactions and write in this general ledger that I will give you a digital dog on 8 February 18. But now someone would have to administer this general ledger. If you’d leave this book to me, I could change the book at any time. If I gave you the book, you could change it. We need to trust each other that both sides are honest forever. Also, someone could steal our ledger and register as the owner of the digital dog.

That is why we need a general ledger that requires no trust, is decentralised, secure and protected against forgery and manipulation. And this is exactly what Bitcoin has achieved, whereby the blockchain as a decentralized general ledger records all digital transactions forgery-proof.