Technology Bytes 2: What is Bitcoin, What is Blockchain, Mining & Transactions in Bitcoin-Blockc

In this video, Learn What is Bitcoin, Blockchain , Cryptocurrency and Transactions in Bitcoin-Blockchain network. Understand the difference between bitcoin and blockchain, the concept of miners and how consensus is reached in a public bitcoin-blockchain network.

In order to understand Bitcoin, let's first understand the evolution of Money. Generation ago, other forms of value items like Gold were publicly used to exchange values, which was later replaced by fiat systems, which centrally controls and prints legal money for making any financial transactions. This money is not backed by any commodity such as gold and the value of the money is derived by various economic factors, relationship between supply and demand and the stability of the fiat system printing the money. People in the economy trust the fiat system for the true value of money.

As digital technologies evolved and in today’s environment we used digital wallet, credit cards to make transactions, instead of physical money. With the money becoming digital, there arises a problem where somebody can duplicate the digital money and spend it in many places. In order to overcome this problem, the systems (bank ledgers, property ledgers etc) provide a centralized solution to record any transaction. Everyone has a bank account and we trust the bank system to ensure accounts are up to date.

The problem of double spending and use of a global centralized ledger was a major hurdle for a global digital money. Then came bitcoin (first introduced through a white paper in 2008), a decentralized system which basically tried to solve the double spend problem through an open transparent distributed ledger (called a blockchain) that records and manages the transactions without the need of any intermediary or central authority.

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  Cryptocurrency