Technologies behind bitcoin

You have now heard of bitcoin and cryptocurrencies several times that you are probably fed up or think you now know enough. You are probably right; however, it helps to gather as much information as possible on a subject because this will add, even if it’s just an ounce of info, that can be a very valuable addition. We are here to offer you that info. 

Bitcoin was created to counter the problems of bank charges on transactions made all over the world which add up to billions of dollars. That is the money taken from the pockets of you and me which can be used on other purposes to better the lives of people. By allowing peer-to-peer transactions, which are a lot cheaper and faster, a lot of money will be saved. It may sound exciting and simple, but you need to understand that this is driven by certain technologies to make it possible. In the traditional banking system, when you send money to someone, the bank has to first verify that your bank account exists and has sufficient funds to send and also the recipient has a valid bank account to deposit the money into. In a peer-to-peer system the transactions need to be verified to check the availability of funds and confirm the accounts/wallets that send or receive money. But there is no bank or financial institution to do this! 

This is done through the technology called mining. Bitcoin mining is simply the process by which transactions are verified all over the world and the transactions are assembled into blocks that are placed onto a public ledger that can be accessed by anyone. Miners are responsible for verifying the transactions and placing them in the public ledger. For a transaction to be placed in the public ledger, all miners in the network must agree that the transaction is valid. This brings us to the second technology behind bitcoin, which is blockchain. This technology can be applied in any situation to eliminate bias and human error, such as voting. Thus, using bitcoin or other cryptocurrencies is safe and secure as it does not rely on human beings to be executed and no one can hack into the blockchain or attack it. These are some of the technologies that you need to understand for you to start using bitcoin to transact or investing in it. 

There isn’t adequate space to provide you with all the information you need on this platform. Our webpage (https://www.dubeminer.com) will provide you with the necessary information to have a better understanding of the technologies behind bitcoin and other digital coins and also give you an opportunity to ask questions which we will answer to the best of our abilities. To get more detailed information you can contact us on the pageor subscribe to our regular newsletter that will provide a series of articles on bitcoin, cryptos and other relevant info.