Steem Crypto Challenge Month #5: i love Bitcoin.steemCreated with Sketch.

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Bitcoin unlike it's name, is not any physical currency which you can touch, hold in your wallets or draw from ATMs or banks. It is a digital asset popularly called blockchain based cryptocurrncy characterised by ita decentralised and non repudiable nature, transparency and annonymity, Bitcoin released by mysterious satoshi nakamoto unleashed the magic of cryptocurrncy to the world with its SHA 256 (secure hash algorithm) encryption and concepts of Proof of work
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For better understanding , I will try to explain the different terms used above

What is blockchain ?

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It is a public ledger to record Bitcoin transections. As the name implies, it is a chain of blocks . A block is a record of accepted transections maintained via cryptographic functions on powerful computers and GPUs known as nodes
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Each block is a combination of hash of previous block extending upto the initial block from where transections has initiated and root of current transection with time and nonce. I will explain nonce in mining. Each node of the blockchain after checking and validating the transection, store a copy of it on ledger and than transmit the information to other nodes for validation and independent storage. In this way, there are multiple checks and balances of the transections
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What is mining?

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Miners are the record keepers of blockchain . They maintain records of transections on nodes. As mentioned above, after storing copy of block, it is immedatwly transferred to other nodes for validation. To be accepted by network, a new block must contain proof of work which requires miners to find a number called nonce (number only used once). Nonce is a mathematicsal computation which a miner need to discover before solving a block in a blockchain. it is a tedious, time consuming and skilful task which deserve reward. So a miner is rewarded cryptocurrncy for their exceptional computational power . And this is how new crproa ( butcoins) are created. So mining is a record keeping process done by miners to keep blockchain going for which they are rewarded cryptocurrncy and therby serve as a mechanism of new cryptocurrncy generation
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i think now it is easy to understand what bitocin is, right?

Characteristics of Bircoin

By saying that it is a decentralised asset, we mean that there is no single authority to control it. It is based on peer to peer network. So you have total control over it. Decentralized nature leads to *annonymity* which means unlike traditional banking system, financial details and adeess is not known to anyone. Although there is a unique bitcoin adress but tracing it back to reach user is almost impossible. It is this unregulated and anonymous nature of the coin, which makes some people to critisize it for being having great potential to be used for illegal purposes. Bitcoin transections are almost instantaneous, which means that they reach your peer sitting anywhere in the world with the click of button. Worth mentioning point is the small amount of transection fee that you need to pay. But one thing that we need to be cautious about is the non repudiable nature which means that once your transections reaches recievers nide, there is no way to get that back unkess receiver wishes to pay back
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How to get and store bitcoins?

Are you interested in getting bitcoims. it is simple to get them online via various exchanges. But before getting Bitcoin you must have Bitcoin wallet. As I mentioned in the beginning that it is like the currecy notes that you can hold and store in your pocket or at home. There are multiple options for Bitcoin storage too in the form of online wallet or software on your computer and mobile device. However, I belive more safer option in the form of hardware wallets and paper wallets are safer to use. if you new to crpto world and don't have enough bucks to buy even one bit coin, you still have option to buy smaller units of Bitcoin. Smallest unit of Bitcoin is satoshi. One satoshi is equal to 0.00000001 Bitcoin
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The price of Bitcoin (BTC) will be 13475.60USD


To be continued...


Thank you.

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It is a public ledger to record Bitcoin transections. As the name implies, it is a chain of blocks

Yes, they are interconnected as each block includes the previous hash. It is also known as the "chain of digital signatures". From the digital signatures, the miners can verify the transaction.

Although there is a unique bitcoin adress but tracing it back to reach user is almost impossible.

The Ellipticcurve multiplication is used to generate a public key from the private key but it is almost impossible in the reverse direction. Even with brute-search force, it will take time more than the age of the universe to figure out a private key. Hence the secrecy of the private remains intact in Bitcoin.

Thank you.

#twopercent #india #affable

Thanks for enlightening further .

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