Today, I would like to discuss the most trending topic on steemit. You guessed it right! Its about the monster gradually taking over the world's markets and becoming responsible for the its evolution. Penning it down its called "Bitcoin".
Many of us might not know about its importance and its life changing power. Lets discuss about its sheer existence and its effect on the world.
The Birth of Bitcoin
In 1981, many inventors joined heads to solved the majorly spread internet theft problems. It includes privacy, security, and inclusion with cryptography. Despite of many efforts the weren't able to develop a secure process because of the involvement of the various third parties. In 1998, Nick Szabo (He claims he's Satoshi Nakamoto) introduced his powerful point in a paper “The God Protocol.” He discussed about the creation of a be-all end-all technology protocol, which designated God the trusted third party in the middle of all transactions. According to which faith was the necessary ingredient to do business internet.
After a decade approximately in 2008 when global financial industry crashed. An Australian entrepreneur named Craig Wright–outlined a new protocol for a peer-to-peer electronic cash system using a cryptocurrency called Bitcoin.
Cryptocurrencies ensured the integrity of the data exchange without going through a trusted third party. They are different from traditional fiat currencies because they are not created or controlled by countries. This act spread like wildfire, as it had set off a spark and captured the imagination of the computing world.
It is also considered to be a trustworthy global platform between two or more parties for transactions. We many call it "the Trust Protocol" which is powered by collective self-interests, rather than by large corporations motivated by profit.
The bitcoin blockchain is the largest among the other global distributed ledgers called blockchain. Blockchains enables us to send money directly and safely among two people, without going through a bank, a credit card company, or PayPal.
The World's Evolution and Bitcoin
The existence of the bitcoin blockchain has revolutionize the way information is stored and transaction occur. Different Banks and governments around the world are implementing such blockchains. The most important and far-reaching blockchains are based on the bitcoin model. These models are laudable, having lower cost, secure and with fewer errors. These models don’t necessarily involve a cryptocurrency for payments.
The Workflow
Let's discuss the bitcoin workflow and how does it work?
Bitcoin or any other digital currency doesn't have files or ledgers or they aren't saved in our computers or excel spreadsheets. There is no central database to hack. It is a public blockchain, which is visible by everyone. It is represented by transactions in a blockchain which is a kind of global spreadsheet or ledger, which leverages the resources of a large peer-to-peer bitcoin network to verify and approve each Bitcoin transaction. The are no weak firewalls as the blockchain uses heavy-duty encryption involving public and private keys to maintain virtual security.
This structure of bitcoin is very secure. All the transactions conducted in every 10 minutes are verified and in order to be valid it stored in a block that is linked to the preceding block, creating a chain. This structure permanently time-stamps and stores exchanges of value, preventing anyone from altering the ledger.
Its not easy to steal a Bitcoin and is impossible. However, if you still want to steal it, you’d have to rewrite the coin’s entire history on the blockchain in broad daylight.
However, there is an argument between some scholars that the invention of double-entry bookkeeping enabled the rise of capitalism and the nation-state. The new platform enables a reconciliation of digital record. This new digital ledger of economic transactions can be programmed to record virtually everything of value and importance to humankind: birth and death certificates, deeds and titles of ownership, financial accounts, votes, provenance of food, and anything else that can be expressed in code.
The truth is, this bitcoin evolution can set us free and will distribute trust effectively among people. We face various complications in our daily life. Continuing the efforts, many innovators are building blockchain-based applications that serve these ends. Everyday, they are working hard to make our life easier and simplified.
I would also like to share a video that will simplify that how the bitcoin will change the world.