Launched in 2009, Bitcoin was the first-ever digital coin that marked the beginning of a cryptocurrency era. It is a decentralized digital currency, not controlled by any authority like a bank. Instead, Bitcoin’s electronic system is powered by a peer-to-peer network where the currency is directly traded and exchanged between users.
A web of thousands of computers verifies the Bitcoin transactions by recording each one of them on a public distributed ledger, accessible to everyone. Bitcoin has established its value as a change-resistant, secure, and decentralized payment protocol.
It is noteworthy that this digital coin has significantly grown in worth by more than 460,000% since its launch. Bitcoin, which once traded below $10, is currently hovering around $46,000. Although the pricing of Bitcoin depends on a variety of factors, including its fixed 21 million supply and corresponding demand, its value is determined by the high-value people give it.
The working mechanism of Bitcoin
The operational technology of Bitcoin is the Blockchain protocol that contains a string of data blocks with information about each Bitcoin transaction. A new block is added to the chain through the mining process when a new transaction is broadcasted. Once the new block is minted,