A blockchain is a distributed ledger that stores every Bitcoin transaction that has ever transpired in its history. It began with “Bitcoin: A Peer-to-Peer Electronic Cash System,” a paper written by Satoshi Nakamoto. The code was released as open source in January 2009. The blockchain began shortly afterward when Satoshi Nakamoto “mined” the first Bitcoins. Satoshi Nakamoto disappeared from the public in April 2011.

There are three types of Blockchains:

  • Public Blockchains: Public blockchains, such as Bitcoin, are large distributed networks that are operated by a native token. They’re free for anyone to join at any level and have open-source code that their community sustains.

  • Permissioned Blockchains: Permissioned blockchains, such as Ripple, handle roles that people can perform within the network. They’re also large and distributed systems that use a native token. Their core code may or may not be available as open source.

  • Private Blockchains: Private blockchains tend to be smaller and do not use a token. Their association is closely regulated. These kinds of blockchains are chosen by consortiums that have trusted members and trade confidential data.

Blockchain vs. Banking

We live in a world where banks and governments control every financial decision made. Banks charge a large fee for each transaction. The blockchain is a cheaper and more secure alternative to the current financial systems around the world. It is a completely decentralized and transparent currency. Thus, It does not have any central authority exercising control over it.

Bitcoin Basics

By |2019-05-17T19:54:26+00:00March 5th, 2019|Bitcoin Topics|

About the Author: