The technology behind bitcoin

The Technology Behind Bitcoin

Bitcoin is one of the greatest inventions of the modern era. It presented us with a futuristic payment method that made regular options such as credit cards, debit cards, and e-wallets look extremely obsolete. Not only that, but it is far superior compared to other cryptocurrencies. That is the reason why it is the most talked-about subject in the financial industry.

These days, Bitcoin’s value exceeds $60,000 and everyone is more than willing to trade with it. But, instead of focusing on the process of trading with Bitcoin, we’ll be taking a look behind the scenes in this article and get familiar with the technology that powers this cryptocurrency. Let’s take a look at all the details.

Artificial Intelligence

Bitcoin’s network has one of the most advanced AIs on the planet. These can be found at reputable trading sites and we are more than happy to explain how they work. These AI systems collect all relevant data about Bitcoin from the market. That data is then analyzed and its goal is to make accurate predictions on Bitcoin’s future fluctuations.

This is a very important feature as Bitcoin is a highly volatile cryptocurrency and its price rises and falls with each passing day. Traders can’t determine how will Bitcoin fluctuate in the near future, but thanks to these AI systems, their path towards higher profits is much easier.

But, it is worth noting that these types of services are not available on every platform. Only reputable trading sites such as the Bitcoin Code website provide you with their knowledge. To gain access to it, you need to register and make your initial deposit. The registration process is very fast and simple. All you have to do is supply the trading site with some basic information about yourself.

Blockchain

Blockchain is the main technology that powers Bitcoin and substitutes the banks. This is a log that stores all transactions made with this cryptocurrency. It is far more efficient than the method implemented by banks and here’s why. Thanks to blockchain technology, all online payments made with Bitcoin are instant. Just to compare, transactions that are processed by banks may take up to 7 business days before they are completed.

Next up, banks usually charge additional fees for man transactions and they make a substantial profit off them. That is not the case with Bitcoin’s system. Since banks are excluded, the users do not have to pay unnecessary fees. Not only that, but general fees are also much lower. Hence, not only is Bitcoin’s blockchain far more efficient in processing payments, but it is a cost-effective solution.

Mining

Mining is a part of blockchain technology. We mentioned above that blockchain is a log that stores all transactions made with Bitcoin. Through mining, the blockchain is updated with blocks. Each block is a verified transaction made with Bitcoin.

Miners are the people who participate in this process and by mining, not only do they allow the network to maintain its stability and continue to grow, but they also generate new Bitcoins in the network as they receive them as rewards.

Since mining is free, it is the most common way to earn Bitcoins which are later sold or used as a payment method. In layman’s terms, mining requires people to solve various complex puzzles. Each solved puzzle is a block that is integrated into the blockchain.

Cryptology

Finally, Bitcoin protects its users by utilizing a method called cryptology. This technology allows the network to mask the data from the users into codes. In doing so, it provides the users with a certain level of online anonymity, thus greatly increasing their security. Apart from the chance to make a profit, security is one of Bitcoin’s greatest features.

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The promise of the blockchain
The trust machine

The technology behind bitcoin could transform how the economy works

BITCOIN has a bad reputation. The decentralised digital cryptocurrency, powered by a vast computer network, is notorious for the wild fluctuations in its value, the zeal of its supporters and its degenerate uses, such as extortion, buying drugs and hiring hitmen in the online bazaars of the “dark net”.

This is unfair. The value of a bitcoin has been pretty stable, at around $250, for most of this year. Among regulators and financial institutions, scepticism has given way to enthusiasm (the European Union recently recognised it as a currency). But most unfair of all is that bitcoin’s shady image causes people to overlook the extraordinary potential of the “blockchain”, the technology that underpins it. This innovation carries a significance stretching far beyond cryptocurrency. The blockchain lets people who have no particular confidence in each other collaborate without having to go through a neutral central authority. Simply put, it is a machine for creating trust.

The blockchain food chain

To understand the power of blockchain systems, and the things they can do, it is important to distinguish between three things that are commonly muddled up, namely the bitcoin currency, the specific blockchain that underpins it and the idea of blockchains in general. A helpful analogy is with Napster, the pioneering but illegal “peer-to-peer” file-sharing service that went on line in 1999, providing free access to millions of music tracks. Napster itself was swiftly shut down, but it inspired a host of other peer-to-peer services. Many of these were also used for pirating music and films. Yet despite its dubious origins, peer-to-peer technology found legitimate uses, powering internet startups such as Skype (for telephony) and Spotify (for music streaming)—and also, as it happens, bitcoin.

The blockchain is an even more potent technology. In essence it is a shared, trusted, public ledger that everyone can inspect, but which no single user controls. The participants in a blockchain system collectively keep the ledger up to date: it can be amended only according to strict rules and by general agreement. Bitcoin’s blockchain ledger prevents double-spending and keeps track of transactions continuously. It is what makes possible a currency without a central bank.

Blockchains are also the latest example of the unexpected fruits of cryptography. Mathematical scrambling is used to boil down an original piece of information into a code, known as a hash. Any attempt to tamper with any part of the blockchain is apparent immediately—because the new hash will not match the old ones. In this way a science that keeps information secret (vital for encrypting messages and online shopping and banking) is, paradoxically, also a tool for open dealing.

Bitcoin itself may never be more than a curiosity. However blockchains have a host of other uses because they meet the need for a trustworthy record, something vital for transactions of every sort. Dozens of startups now hope to capitalise on the blockchain technology, either by doing clever things with the bitcoin blockchain or by creating new blockchains of their own (see article).

One idea, for example, is to make cheap, tamper-proof public databases—land registries, say, (Honduras and Greece are interested); or registers of the ownership of luxury goods or works of art. Documents can be notarised by embedding information about them into a public blockchain—and you will no longer need a notary to vouch for them. Financial-services firms are contemplating using blockchains as a record of who owns what instead of having a series of internal ledgers. A trusted private ledger removes the need for reconciling each transaction with a counterparty, it is fast and it minimises errors. Santander reckons that it could save banks up to $20 billion a year by 2022. Twenty-five banks have just joined a blockchain startup, called R3 CEV, to develop common standards, and NASDAQ is about to start using the technology to record trading in securities of private companies.

These new blockchains need not work in exactly the way that bitcoin’s does. Many of them could tweak its model by, for example, finding alternatives to its energy-intensive “mining” process, which pays participants newly minted bitcoins in return for providing the computing power needed to maintain the ledger. A group of vetted participants within an industry might instead agree to join a private blockchain, say, that needs less security. Blockchains can also implement business rules, such as transactions that take place only if two or more parties endorse them, or if another transaction has been completed first. As with Napster and peer-to-peer technology, a clever idea is being modified and improved. In the process, it is fast throwing off its reputation for shadiness.

New chains on the block

The spread of blockchains is bad for anyone in the “trust business”—the centralised institutions and bureaucracies, such as banks, clearing houses and government authorities that are deemed sufficiently trustworthy to handle transactions. Even as some banks and governments explore the use of this new technology, others will surely fight it. But given the decline in trust in governments and banks in recent years, a way to create more scrutiny and transparency could be no bad thing.

Drawing up regulations for blockchains at this early stage would be a mistake: the history of peer-to-peer technology suggests that it is likely to be several years before the technology’s full potential becomes clear. In the meantime regulators should stay their hands, or find ways to accommodate new approaches within existing frameworks, rather than risk stifling a fast-evolving idea with overly prescriptive rules.

The notion of shared public ledgers may not sound revolutionary or sexy. Neither did double-entry book-keeping or joint-stock companies. Yet, like them, the blockchain is an apparently mundane process that has the potential to transform how people and businesses co-operate. Bitcoin fanatics are enthralled by the libertarian ideal of a pure, digital currency beyond the reach of any central bank. The real innovation is not the digital coins themselves, but the trust machine that mints them—and which promises much more besides.

This article appeared in the Leaders section of the print edition under the headline «The trust machine»

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The technology behind Bitcoin

The following is a list of mining hardware or technology behind Bitcoin

Should you invest in cryptocurrency? Investing in cryptocurrency could be a good investment with companies like Bitcoin and Litecoin gusting up the stock market. Cryptocurrency is grabbing attention all over the world, but it is difficult to foresee whether you will receive similar value for your money after a year.

Bitcoin is the most popular cryptocurrency available right now with a rise in prices, and it represents a great investment opportunity. Since January 2017, the value of a single Bitcoin has gone up more than 800%, and the total market cap of all cryptocurrencies is 1300%. In comparison, the stock market is up about 17 or 18%.

With the evolution of Bitcoin since January 2009, trade has been promoted. This trade has opened earning pathways for many. For instance, software and hardware experts can now earn a handsome amount through mining. Several types of mining hardware have been introduced to facilitate mining. It refers to an application-specific integrated circuit which has been developed to regulate trading operations.

Many still do not know how and which mining hardware to use in a particular scenario to accurately and efficiently promote trade through Bitcoin. However, xCoins have come up with an optimal solution to these problems in the form of this article which focuses upon X Great Bitcoin Mining Hardware.

The following is a list of mining hardware or technology behind Bitcoin:

Hashflare Mining Hardware

This mining hardware is designed using ASICs in a way to trade at least 10 GH/s of Bitcoin. Hashflare can only trade in units of Bitcoin, while it can further convert Bitcoin into any other cryptocurrency if demanded by the trader. The mining hardware is designed to trade SHA-256 mining contracts only. These contracts are well-known for generating better profits.

Genesis Mining Hardware

Genesis mining hardware is known to be the largest mining facilitator which deals with both script and mining cloud. The hardware is designed in a way to facilitate three bitcoin cloud mining simultaneously.

Hashing 24 Mining Hardware

Hashing24 is one of the contemporary mining techniques pitched to facilitate Bitcoin mining in the regions of Georgia and Iceland. This mining hardware is designed by the amalgamation of new ASIC stimulators, which are considered responsible for providing cost and time efficient trading of Bitcoin.

Minex Mining Hardware

Minex mining hardware has been designed to facilitate trade in regions such as casinos, pubs, etc. With this hardware, clients or investors play a gambling game, in which they purchase cloud-packs which are then traded between different buyers to acquire profits.

Hashnet Mining Hardware

Hashnet mining hardware has been designed in order to increase the hashrate level of a Bitcoin. The more the hashrate the more chances for a miner to gain profitable rewards.

Eobot Mining Hardware

Eobot mining hardware allows an investment to begin at a minimum rate of $10. The use of this mining hardware is good for low-level investors as well as miners.

Did we miss any? Let us know down below in the comments or carry the discussion over to our Twitter or Facebook.

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The Technology Behind Bitcoin’s $1 Trillion Valuation And Its Application Beyond Cryptocurrency

internet security and data protection concept, cybersecurity

Now a trillion-dollar asset, bitcoin is paramount to cryptocurrency culture after its 60% hike this month, surpassing any traditional asset in this record-breaking milestone.

Since its introduction to the financial market in 2009, this first-of-its-kind cryptocurrency has been marked by high volatility and price fluctuations. Being a “highly speculative asset,” U.S. Treasury Secretary Janet Yellen has stressed the need for regulating any institution that handles bitcoins and investor protection in a recent CNBC interview. Despite the lack of regulation and vulnerability to scams and illicit transactions, a mixture of social proofing and celebrity endorsements has catapulted its popularity among investors and the masses.

But behind bitcoin is the ingenious blockchain technology that enables this unprecedented digital asset. The symbiotic relationship between bitcoin and blockchain is so apparent that people often confuse the two. Simply put, without blockchain, bitcoin is useless. With each bitcoin transaction, a digital trail is created on a shared ledger. Though the transaction itself is open and public, the person’s identity behind the bitcoin transaction is encrypted and remains private. As transactions are posted on this digital ledger, a perpetual “chain” of anonymous and real-time transactions is created.

Though blockchain technology is most prominently recognized with its application to bitcoin and other cryptocurrencies, other use cases are taking precedence, particularly within supply chain management.

As seen with Covid-19, supply chain disruption is a critical risk that has an enormous impact on a company’s operations and bottom line, especially for those that operate very complex and global supply chains with multiple intermediaries. The slightest hiccup in production can disrupt supply chain operations in mass proportion, creating fluctuations in lead times that can either cause supply shortages or tie up money in excess inventory.

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Even with the most sophisticated ERP software, there is still a potential for information to be locked in silos, disparate processes, unnecessary paper trails, miscommunication between partners, and untraceable documents and activities. Streamlining the entire supply chain network would require integrating all software and systems across various suppliers, retailers, manufacturers, financial institutions, logistic providers, and regions to speak the same language. Essentially, all parties would be required to integrate the same system of record for every step of the supply chain process, which is highly impractical.

Blockchain solves this problem by greatly enhancing supply chain visibility and traceability within a complex supply chain network. All parties would have access to the blockchain with secure and synchronized data, including full transparency of every action being performed in real-time during end-to-end supply chain activity. As a result, leaders can quickly trace every single component of production and financial transactions, identify any existing bottlenecks, and quickly pivot to avoid certain risks that could cause disruption.

Blockchain is currently being used across various industries to transform supply chains ranging from food and agriculture, retail, aerospace, and even Covid-19 vaccinations!

Since the FDA authorized the first emergency use of the Pfizer-BioNTech Covid-19 Vaccine to be administered in the U.S. in December 2020, the rollout of Covid-19 vaccines has been underway. Subsequently, decision-makers have been rallying to make the vaccination available to every adult in the U.S. by the end of summer 2021. The World Health Organization also announced its global effort to provide rapid and equitable access to 2 billion Covid-19 vaccination doses for all countries by the end of 2021.

With this enormous feat, the deployment of advanced technology to enable vaccination logistics is essential. The vaccination supply chain has barriers that include a lack of transparency, traceability, and real-time information coordination. According to CDC Director Rochelle Walensky, “one of the biggest problems right now is I can’t tell you how much vaccine we have, and if I can’t tell it to you then I can’t tell it to the governors and I can’t tell it to the state health officials.”

Leveraging blockchain is a solution to this problem. In fact, two hospitals in the U.K. have already been reported using blockchain to increase visibility into the supply chain logistics of vaccines by tracing temperature-controlled Covid-19 vaccinations and synchronizing data for real-time status updates on shipments for distribution and administration.

In the food industry, blockchain is being used to enhance traceability and transparency to reduce inventory loss by tracking the source of contaminated food, from farm and manufacturing to retail. Since 2019, Walmart and Sam’s Club made it a business requirement for suppliers to use IBM Blockchain as apart of their supplier agreements to allow transparent information among diverse suppliers in the supply chain network. Other names in the food industry who are using IBM Blockchain include Nestlé and Tyson Foods.

The retail and consumer goods industry also uses blockchain to reduce losses due to counterfeit goods and allow supply chain partners to trace products in different locations. And in the aerospace sector, leaders leverage blockchain to streamline material traceability for parts acceptance from FAA and non-FAA certified sources and trace aircraft material requirements.

Though Bitcoin is the earliest application of blockchain technology, its implementation beyond cryptocurrencies positions it as one of the future’s leading technologies that will transform the way businesses operate in years to come.

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