What is Bitcoin?

Bitcoin was created by “Satoshi Nakamoto” in 2008. It is the first fast, secure, low-commission digital cryptocurrency with no central authority. Bitcoins can be bought and sold. There is no need for third parties when making financial transactions. While performing these transactions, peer-to-peer technology is used without the use of intermediaries.

Bitcoin trading is secure. Although Bitcoins are in a transparent blockchain structure, the identity of the sender and receiver is confidential.Only “Public Key” is visible. The public key is the address of the Bitcoin wallet on the blockchain. Another term that comes with a public key is “Private Key”. Private Key is needed to access the Public Key, that is, the Bitcoin address. Private Key is a secret key. You should not share this key with anyone and you should not lose it. Anyone who knows your private key has also owned the Bitcoins in your account.

How is Bitcoin generated?

It is produced with Bitcoin mining system. The Bitcoin blockchain network generates a new block on average every 10 minutes. When a new block is generated, transactions made in the last 10 minutes are written into that block. In the block, there is Bitcoin produced as a block reward and a difficult mathematical operation. Bitcoin rewards are halved every 210,000 blocks mined (approximately every 4 years). This reward amount has now decreased to 6.25 Bitcoin. The mathematical operation in the block is like a difficult riddle. People who try to solve this riddle are called miners. Another task of miners is to check the correctness of transactions within the block. He is the one who solves the hard math riddle and gets the reward, but the transactions are confirmed by millions of miners. If there is no error after solving the riddle, the next block is passed. Before moving on to the next block, they combine the solution of the riddle in the previous block with a random number and date, sign it with the SHA256 signature algorithm, and add it to the next block. SHA256 is an encryption method. Miners who move to the next block try to decode the message hidden with SHA256 by trial and error. The more miners there are in the Bitcoin network, the more difficult this mathematical riddle becomes. While producing Bitcoin, both the security of the network is ensured and the transactions on the network are recorded by millions of computers.