What İs Bitcoin ?

Simply put, Bitcoin is a currency. Unlike traditional fiat currencies, however, there is no central bank that controls it. Each Bitcoin unit is unique, cannot be copied, destroyed, and runs on a distributed network that is maintained by thousands of computers around the world.

Over the past decades the creation of virtually anything from the web to word processors and network programming has been based on the ability to quickly and easily copy digital information at a cost close to zero. Of course, many computer and network technologies have been developed based on this universal data feature.

It was only a matter of time before computer scientists and developers began to wonder about the other half of the data economy. What if the data cannot be copied? What if there was something like a unique piece of data or could it be transferred from user to user? These questions and their practical results made it clear that unique data that cannot be copied can be used as digital money.

Although there are other types of digital currencies, Bitcoin was the first cryptography to introduce cryptography techniques and was the first to introduce cryptography techniques. Most people may have little or no experience with such digital currencies, so they might ask, "What is Bitcoin?" Or they might want to know how Bitcoin works. The basic technology that makes crypto currencies so unique is fascinating, but it's probably a very complicated issue for most of us.

What is Bitcoin?

As mentioned above, Bitcoin is the first crypto currency ever created. It is a form of digital money used in a highly fraudulent and decentralized financial system.

When looking at Bitcoin as a currency, it can be defined as a digital currency operating in a distributed (peer-to-peer) economic system. The unit of Bitcoin is BTC.

In digital currency, Bitcoin is protected by thousands of lines of code. It is based on open source software that is regularly developed by a large developer community. Initially, such software was also known as Bitcoin, but the major Bitcoin client software was officially renamed as Bitcoin Core in 2014 to avoid misunderstandings.

Bitcoin is not regulated or controlled by a single authority or organization, but is maintained by many computers (nodes) spread across the world. The Bitcoin network is based on a distributed book called Blockchain, which is responsible for maintaining an organized list of all transactions. These operations are grouped into connected blocks to form a Blockchain (hence the block chain).

Due to their various qualities and functions, although there are different concepts, there is often confusion about the differences between Bitcoin and Blockchain. Now let's answer exactly what is Blockchain.

What is Blockchain?

Basically, a blockchain is a series of records that are very similar to a general ledger book or a flat database. However, its uniqueness comes from the mechanism it uses to validate and protect these records.

The unique and unchangeable data problem has plagued programmers since the early days of digital storage. If data on a disk can be changed so easily, who can say which is the legitimate and correct version? This is a hard question. Until the early 1990s, when Blockchain was first created by Stuart Haber and W. Scott Stornetta, it remained a very difficult question.

Cryptographic evidence was first applied to secure a Blockchain as a way to prevent data tampering. The news and the work of Stornetta certainly inspired the work of Hal Finney and many other computer scientists, and eventually Bitcoin was created. The Bitcoin white paper was written by Satoshi Nakamoto in 2008, and the first block was released on January 3, 2009.

Distributed and Secure

The technology underlying Bitcoin is designed to protect the integrity of data and processes. First, each transaction is digitally signed and verified using cryptography techniques to ensure that funds are not spent more than once. If valid, the process is permanently saved to the Blockchain by a process known as mining (more cryptography techniques are applied in this step).

This may seem like a process that requires a lot of additional effort, but it has a profound impact on the security of the system. Replacing the Bitcoin Blockchain requires solving the entire structure; this is practically impossible even for the most powerful computers.

Another important layer of security is that data is distributed over countless network nodes in the world (each holding a copy of Blockchain data).

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