25 Jun 2018 Arjun Agarwal
Bitcoin Insight: The Ambitious Idea and Actual Realization of the Bitcoin
Bitcoin revolutionized the financial industry and its limitless possibilities are yet to transform the world in the future.
Bitcoin is the world’s first cryptocurrency - a payment platform with an open-source code, designed and officially launched back in 2009. The main idea behind this innovative and ambitious idea was to a build a system built on peer-to-peer interaction only. Satoshi Nakamoto is the name given to the still-anonymous person or team of developers who created the famous cryptocurrency.
By transferring the traditional way of executing any finance operations into the virtual world, Bitcoin created an e-cash environment with the actual flow of money without any central bank or single administrator. All payment transactions are realized through the integration of a decentralized digital currency.
BTC coins are sent from user to user on the peer-to-peer Bitcoin network without any third-party intermediate, such as a central bank or administrator. The public ledger is one of Bitcoin’s essential elements. It is a log which is distributed through the blockchain network which records any trades executed between users, managed by the community.
The blockchain by design is a completely secured list of records that grows continuously. Those stores are its blocks. They are linked and further secured using cryptography. The method of cryptographing varies but typically contains a cryptographic hash of the previous block.
If the block holds a record, it cannot be changed further without alteration of all subsequent blocks, unless it receives the consensus of the network majority. By this, it provides a completely secure environment.
By distributing data across the network in a public manner, the blockchain in Bitcoin accomplishes to improve on the traditional methods of managing money. It eliminates many risks that come with data central data collection and management.
The first conception of the idea for a distributed cryptocurrency was mentioned vaguely for the first time in 1998. Ten years later, Satoshi Nakamoto resolved numerous issues which have postponed the launch of such technology for a long time and made the launch of the Bitcoin a success.