Bitcoin - Decentralized Digital Cryptocurrency, Blockchain Technology
Bitcoin was the first decentralized digital currency. Coins are transferred between wallets through transactions in the network. Blocks are formed by miners.
Summary
Bitcoin was the first decentralized digital currency invented by Satoshi Nakamoto. The records for the currency are kept in nodes. Nodes can be run by anybody. Each node contains a ledger; a copy of all the transactions that have occurred on the network. Digital wallets are used to hold the currency and make payments by sending transactions. When a wallet sends a transaction it is given to all miners. Miners run nodes that work to solve a difficult math problem; forming many transactions into a block. The first miner to solve the problem gets paid some Bitcoin to their wallet as a reward and adds this block to the ledger. From this, everyone on the network sees the new transactions in the recently added block. Each new block is linked to the previous block. This creates a chain of blocks, which is where the name Blockchain originates.
The technology behind blockchains enables individuals to participate in a network that transfers value between wallets without an intermediary such as a bank. Cryptography is the backbone that ensures all parties involved can not steal from each other and all Bitcoin is accounted for. Each block in the chain is immutable, meaning it can not be changed, and transactions are irreversible.
When was Bitcoin invented?
Bitcoin is a digital currency created by Satoshi Nakamoto in 2008.