Bitcoin

Bitcoin is a form of digital currency also known as a cryptocurrency that’s gained a lot of popularity in the past few years. Unlike traditional currencies, like the U.S. dollar and the British pound, bitcoins are decentralized and cannot be printed by any country. Instead, they’re generated through a process known as blockchain technology. More specifically, this process involves a global network of computers solving difficult problems every few minutes. Once a problem is solved, it becomes part of the next block in the chain hence the term blockchain. This effectively creates an infinite supply of currency and allows for ultra-secure transactions.

Bitcoin

Bitcoin is a cryptocurrency created in 2009. It was invented by Satoshi Nakamoto. Bitcoin is decentralized and uses cryptography to regulate transactions. Bitcoins are issued to users using a proof-of-work system, and they are not controlled by any central authority. There is no single administrator who can change the rules after launch.

Blockchain

A blockchain is a digital ledger of all bitcoin transactions. In order to complete a transaction, both parties to the deal record their data onto the blockchain. All participants then have access to the same exact copy of the ledger. Once recorded, changes cannot be erased.

Mining

Mining is the process of adding transaction records to the publicly distributed ledger of past transactions.

Proof-of-Work

Proof-of-work (PoW) is a consensus algorithm used in cryptocurrencies that require miners to solve complex mathematical puzzles. These puzzles are designed to be difficult to reverse, making each puzzle solution irreversible. As soon as a miner solves a puzzle, she gets rewarded with newly minted coins and her block of solved puzzles becomes the “block” of subsequent blocks.

Block Reward

Block rewards vary based on how many blocks are added to the chain since the genesis block. Every four years, the reward halves until it reaches zero. When the reward reaches zero, the mining difficulty adjusts upwards to compensate.