The Original Blockchain

The Original BlockchainIn many blockchains. it isnt actually that hard to create whole new blocks and potentially rewrite history. But in Bitcoin. due to a requirement called “proof of work and the fact that bitcoin is the most valuable of all cryptocurrencies, creating new blocks is very computationally expensive. It requires dedicated hardware, a certain expertise and. most of all. lots and lots of energy.

To change history, then, requires an attacker to reinvest all of the energy that has been invested in Bitcoins blockchain from the point in history that needs to be changed. Depending on how much hash power a potential attacker has available, this is either very expensive or downright impossible.

The costs involved in changing the data is what makes the Bitcoin blockchain the most robust.

Immutable and chronologically sound chain of transaction data the world has ever seen. Its a historical ledger of all transactions that ever took place.

The Blockchain — Beyond Bitcoin

Interestingly, this doesnt have to end with transaction data. As a global, censorship-resistant consensus system. Bitcoins blockchain potentially allows for much more.

Transactions dont really have to be used solely to transfer bitcoins. Instead, special software can be connected to the Bitcoin blockchain that interprets this basic transaction data a bit differently.

As a simple example, a fraction of a bitcoin — potentially worth less than a cent — could represent something else entirely. Perhaps that fraction of a bitcoin can represent stock in a company. Or a piece of gold locked up in a safe. Or even a U. S. dollar in a bank account. Whoever then owns the “colored coin.” as this fraction of a bitcoin is called, has a claim on the underlying property. And as long as other participants recognize the claim, the Bitcoin blockchain — with its unique properties — all of a sudden carries much more than just bitcoins: it carries stocks, gold or dollars.

There are many other unique properties that continue to prove that Bitcoins blockchain is a standout player, even as the concept of blockchain technology takes off in countless industries. The Bitcoin blockchain as a global, censorship – resistant and immutable consensus database is a very powerful tool. And much like the internet itself, it is working today, ready and free to be used by anyone.

To learn more about the technical details behind Bitcoins blockchain and the ways in which the technology is evolving, visit bitcoinmagazine. com/sections/ blockchain.

Leave a Reply

Your email address will not be published. Required fields are marked *