Bitcoin Blockchain

Bitcoin is a monetary network that is stored on a global distributed network called the blockchain. All transactions that are recorded on the blockchain are confirmed and verified by multiple nodes on the network to ensure its immutability. The fact that these nodes are run on individual computers worldwide means that there is no one person or entity that has complete control over the network. Therefore, bitcoin is seen as a truly global decentralised monetary network where value can be transferred across borders in a peer-to-peer format in a matter of seconds with low fees when compared to the traditional international payment networks. The underlying principle of the public ledger is secured by cryptography, a process of verifying data based on the mathematical theory along with computer science. It ensures that data sent from a user to another is secure and correct. It enables the receiver of data to have absolute confidence and trust as to the authenticity of such data. It is in this way that bitcoin can be transferred as a string of code from one person’s bitcoin wallet to another, no matter where they are in the world and without having the sender know the identity of the receiver of the bitcoin, as there is complete trust in the network based on the underlying foundation that the bitcoin blockchain was created. When a btc transfer is initiated by the sender, the transaction remains in a “pending” status until it is confirmed by multiple nodes on the consensus system of the distributed network. This allows fully verified transactions to be added as blocks to the bitcoin blockchain in a chronological way while securing the network.

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