Everything about bitcoin and its network

Bitcoin is becoming popular day by day by increasing the usages of bitcoin. There are over millions of bitcoin users, and more than 3,30,000 bitcoin transactions daily occur, and the data is at the time of writing this article.

Bitcoin technology is a very comprehensive technology. If you want to learn bitcoin technology, you have to read many books and blogs on bitcoin technology.

But do not worry; in this article, I will describe everything about it bitcoin technology and its network. So without wasting time, let’s briefly explore bitcoin technology and its network.

What is bitcoin?

Bitcoin is a global currency that came into existence in 2008 by the founder name Satoshi Nakamoto. Bitcoin is a digital currency that came into existence to solve fiat currency problems such as domestic currency, high transactional fees or charges, low transactional fees, tax, etc.

Satoshi was also facing fiat currency problems, and finally, he decided to create a new currency that would replace the fiat currency with a lot of features, that is, bitcoin.

Bitcoin is not a medium of exchange, but you can use it for multiple purposes such as investing, trading, mining, online shopping, buying, selling, sending, receiving, accepting in business and consulting, etc.

What is blockchain?

Many people understand that bitcoin and blockchain are the same things, but there is a vast difference. Bitcoin is merely a virtual coin that you can store in the bitcoin wallet and can do multiple things with it, but the blockchain is a platform where all the transactions occur.

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The bitcoin blockchain is also known as a public ledger because all the bitcoin transactions get stored on the blockchain network. There are a lot of miners working behind the blockchain network who work for the blockchain for smooth running.

Blockchain is a decentralized system that means it is an open-source system, and no third parties can control or manage it. You can check all the transactions by visiting the official website of blockchain.

Related: Difference between blockchain and cryptocurrency

Go to the website, click on the search bar and paste your transaction id. The website will show you the status of the transaction, whether it is confirmed or not, the sender’s id or receiver’s id, the amount of the transaction, and your previous transactions.

You can check anyone’s bitcoin transactions on the blockchain website, but it will not show you the user’s personal information except the transaction id or wallet address. For more detail, check this bitcoin rush

Who are miners?

Miners are persons who are working behind the blockchain network. The miners are the persons who solve the complex mathematical equations through their programming and mathematical skills to validate the transactions, and they get the reward for it.

For example, Suppose there are two users of bitcoin, User A and User B. Suppose User A has sent two bitcoins from his bitcoin wallet address to the wallet address of User B.

First of all, the transaction will occur on the blockchain, and the miner will validate the transaction if it is true or not. Then, they will solve the complex mathematical equations in programming languages to validate the transaction, and when the transaction gets solved, User B will get bitcoin in his wallet.

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Thus, miners have to solve the set of transactions to get the bitcoin reward, and they get 6.25 BTC as a reward for solving a block or set of enough bitcoin transactions.

What is a bitcoin wallet?

Bitcoin wallet is a virtual or digital place for storing bitcoin, and from the wallet, you can send and receive it from anyone around the world. It is the same as the physical purse that we use to store fiat currency notes or coins but in a digital form.

There are a lot of bitcoin wallets available on the internet, and you can choose them according to your choice. There are some wallets such as paper wallets, hardware wallets, web wallets, mobile wallets, exchange wallets, and the most secure wallets are the offline wallets such as paper wallets and hardware wallets.

What can you do with bitcoin?

You can do a lot of things with bitcoin, and there are the following things that you can do with bitcoin:-

  • You can invest money in bitcoin for long-term profit.
  • You can trade your money in bitcoin if you want to earn short-term profit.
  • You can do online shopping from e-commerce websites through bitcoin.
  • If you are running your business or website, then you can accept bitcoin payments.
  • You can earn money by providing bitcoin consultancy.
  • You can send and receive bitcoins from anyone around the globe.
  • There is a lot of bitcoin earning methods that you can use to make money.