Do you know why bitcoin compares to banks and why it works better than them?..
We already know that ...
Bitcoin was invented to be 100% digital money capable of creating and transmitting directly between people. This means that it is the first digital money that you do not need from a bank, unlike the dollar, euro or peso.
And we also know that ...
Bitcoin is able to function without banks thanks to a series of technologies that was dubbed "blockchain." This technological advance can record data in a decentralized universal network in a very secure, public, fast, transparent and anonymous way.
But how does all this work and why is it not necessary to use a bank?
I will explain it by part
Bitcoin has its own accounting record book, where all the transactions that are occurring between the people who use it are recorded. This record is 100% digital and each sheet is represented as a block of data.
At the end of each block, the final balance of the currency that was available must be resolved, the balances of each person and it is also confirmed that the numbers are related to all the information from the previous blocks.
Who does all this work?
The answer is a network of thousands of computers that are scattered around the world and owned by people like us, who want to earn a juicy reward for solving this mathematical problem. These are the famous miners.
This type of work is done with sheer brute force. Computers, for their part, try the calculation over and over again.
All miners compete to solve the problem first and thus be able to show it to the rest of the network. This is known as proof of work.
And the first computer to do all of this correctly wins a prize; this being the longed-for bitcoin!
Each miner stores a copy of the entire accounting record on their computers. That is why the bitcoin information is not in one place, but distributed in all these computers that are around the world. However, all people can download the bitcoin historical record. But, there is nothing to worry about because no one will know who is who.
The bitcoin blockchain uses cryptography. This means that, instead of showing our name, it assigns us a unique and secret code made up of letters and numbers. In this way, bitcoin can be sent directly between people (P2P) anonymously and securely even though the records are public and available to everyone....