WHat is blockchain?

Blockchain is a digital, decentralized ledger that records transactions across multiple computers, making it secure and transparent. Instead of relying on a central authority, blockchain uses a network of participants to verify and store data, ensuring that the information is tamper-proof and accessible to everyone in the network. The blockchain concept was created as part of Bitcoin. Bitcoin was the first application of blockchain technology, introduced by Satoshi Nakamoto in 2008.

WHat is bitcoin?

Bitcoin is a peer-to-peer digital currency that operates independently of a central governing authority. Bitcoin enables direct transactions between users, secured by cryptographic technology and recorded on a transparent and immutable ledger known as the blockchain.

Why was bitcoin invented?

Bitcoin was created by Satoshi Nakamoto in response to issues with the traditional banking system, such as lack of privacy, high fees, and inflation caused by centralized control. The 2007-2008 financial crisis highlighted the risks of this system. Bitcoin's key principles—decentralization, transparency, security, and a fixed supply—aim to solve these problems. By addressing the double-spending issue, Nakamoto enabled a financial system that relies on cryptography and network verification instead of trust in institutions.

WHAT is bitcoin mining?

The process of “mining” involves employing advanced hardware to tackle a very challenging computational arithmetic problem. The next block of bitcoins is distributed to the first computer to solve the issue, and the cycle repeats. Bitcoin miners receive bitcoin as a reward for creating new blocks which are added to the blockchain. Mining rewards can be hard to come by due to the intense competition. The probability that a participant will discover the solution is related to the network's total mining capacity.