I assume you’ve already heard about Bitcoin since you’re reading an article on this cryptocurrency-related blog. But do you know how it really works?
Bitcoin is the first famous application of blockchain technology. It essentially incorporates a decentralized public ledger for keeping track of transactions instead of maintaining centralized records, i.e. on the given bank’s server. As a consequence, blockchain is resistant to manipulating data (it is not enough to hack one computer, one would need to take down the majority of computers on the network to manipulate the „source of truth”). How’s that possible? It’s quite simple in principle, but quite complex to achieve.
When you make a transaction with Bitcoin it creates a record that is saved on the blockchain forever. There are hundreds of thousands computers around the world called “nodes” that keep the copy of a blockchain (the ledger) and are always connected to the network with other nodes ensuring that every copy of the ledger is up-to-date. And the network is growing very quickly. Isn’t it cool?