Bitcoin block chain also known as Bitcoin network is a technology that allows us to transact with one another and also keeps track of your transactions and balance. This is a network that uses a distributed consensus to confirm and verify transactions performed in the network. This consensus or agreement in transaction is reached through a large worldwide network of high-performance computers called miners which runs the Bitcoin software.
Basically, the Bitcoin network utilizes the block chain technology that operates on a decentralized consensus. This means that the network is not run by a particular corporation, bank or government which makes it secure hence the more decentralized it becomes via the growing network on the block chain, the more secure it becomes.
The Bitcoin block chain can also be viewed as a distributed ledger, which implies that a ledger is shared across the block chain network so as to enable each peer within that particular network to each possess a copy of the complete ledger. Each peer involved in a mining process has an identical up to date copy of the public ledger which is a record of all transactions made in the Bitcoin history. It should be known that whenever a copy of the letter is updated a new block is formed which in turn increases the security of the technology.
Features of Bitcoin Block Chain
Bitcoin block chain has become one of the most used transactions technology by various commercial firms due to its reliability contributed to the fact that it is a computer-controlled software as well as other features it offers. The data of transactions via Bitcoin is added to the block chain by connecting it chronologically with other blocks to form blocks linked together. Below are some of the features offered by the Bitcoin block chain;
- Distribution Benefit: As earlier mentioned, the public ledger of transaction between pairs are distributed directly to the parties involved hence they are in full control of the data on the ledger which makes tampering by a third party pretty much impossible. This means that it is very safe.
- Peer to peer: this is one feature that benefits the peers involved in Bitcoin transactions as they will be in communication directly with each other. This implies that there are no central authorities to control and manipulate the transactions.
- Consensus: they can be considered as the most critical feature of the bitcoin network as it is what gives the block chain system the power of decentralization. This simply means that no central figure is in charge of the ledger update rather it is validated via strict policies defined by the block chain protocol after a consensus has been reached among involved peers on the network.
Generally, the bitcoin block chain has now been preferred to the traditional transaction means by most commercial firms because the unit of value sent and received via the networks are completely digital, which means it cannot be physically held because all transactions are done through the block chain which is controlled by a global high-performance computers known as miners.
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