Still Don’t Get Bitcoin? This Lecture will Make it Simple for You
A lot has been said and written about bitcoins but there are still many out there who simply don’t get it. The core of the bitcoin technology lies in what is known as a blockchain. Like the word suggests, it is a series or chain of blocks where each block can be used to identify who owns it, where it came from and other such important information which is then passed on from block to block. The biggest advantages of this technology is the fact that it does not need any central administration and the verification and regulation is built in within this technology making it a very highly secure technology in itself. This is why it lends itself to industries where high security is needed like finance, medicine etc.
The added security comes about by a process of hashing where private and public keys are used to validate each entry into the blockchain and only if the keys match, the hashing is successful and the chain continues and the transaction is deemed complete. The bitcoins are built on this technology and are treated similar to a currency. The coins are obtained by a process called bitcoin mining which is done using the help of computers which delve into the blockchains and retrieve the bitcoins, so to speak.
The technology and the way it is scripted has been made easy so that everyone can understand and it is open source as well. This is the reason for the technology to have picked up very quickly and given way to alternate currencies that use the blockchain technology, like ethereum which is gaining in popularity very quickly. It is also used as the base on which other coins are being built which helps the market and the technology to gain in acceptance and to quickly mature as well.
It has to be noted that any hacks that have been reported are done on the exchanges and not on the blockchain itself which shows the strength and the security involved in this technology. The blockchain technology and the bitcoin industry are likely to stay around for long and the growth in technology is likely to help it to spread across various domains which can make better use of this technology.