InternetTech

What is BitCoin and BlockChain?

We have been hearing about the concepts of Bitcoin and BlockChain a lot . Although the birth of these concepts is based on a really well thought innovation in 2008, the exaggerated increase in BitCoin prices in the last days has increased the interest in this subject in the world.

  BitCoin It is expressed as a digital currency that is produced and put into use completely electronically. This currency has no affiliation or affiliation with any country or region. We can define BitCoin, which anyone in the world can contribute to its production, as a gift given to the employees for its production. Since this fully digital currency does not have a connection with any bank, it can also be expressed as virtual money that people send to each other in shopping. The conversion of Bitcoin digital money into real money is also done through exchanges and brokerage firms.

      When there is no intermediary to send and receive the digital currency bitcoin, there are no fees. Reciprocal digital money transfers are carried out over fully secured networks.

      This money, which a person using Bitcoin has, virtual or digital, is encrypted in his account. Virtual money stored encrypted in people’s digital wallets; people can either earn by producing or buy them by paying with the currency of the country they are in. In the purchase process, brokerage fees are also paid to the platforms that mediate the transaction.

What is BlockChain ?

While defining Bitcoin, I mentioned that it is an electronic money produced in digital environments and that it was actually given as a gift to people who took part in the production of this money. Here, earning or mining Bitcoin actually consists of ensuring the accuracy of the records called BlockChain and keeping these records in a distributed database.

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      In a simpler explanation; I’m talking about a structure where the information of people who send electronic money to each other is kept in an encrypted way, but this registry, that is, the database, is stored not only in one center, but also in millions of computers around the world. Here, by keeping the records of this database, creating new blocks by processing it on its own computer, connecting it to previously created blocks in an encrypted manner, a chain is created that contains all the payment information made in this structure until the time of the transaction. BitCoin is given as a reward to those who create interconnected blocks. The purpose of Bitcoin miners is to earn bitcoins by making transactions on this distributed database in their digital systems.

      We can express BlockChain as a database that is used as a base to earn Bitcoin, enables the creation of new encrypted blocks by processing the encrypted blocks by bitcoin miners, and is distributed not only on a computer, but also on computers or digital systems dealing with this business around the world. Bitcoin production is also defined as a gift given to the miners involved in the formation of these chains, which are distributed all over the world.

      In BlokChain technology; In money transfers, information such as the identity of the sender and receiver, the amount sent is encrypted and a new block is created. This information block is added to the end of other blocks created earlier and distributed to the blockchain network. Therefore, a record of all transactions made in the blockchain database is kept from the beginning and new records are added to this system in an encrypted manner. The added information is distributed to all computers on the other network and the process is continued.

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BlockChain and energy consumption

Data miners, that is, people who operate on tables of records (blockchain) to earn bitcoins; they use high-capacity computers or video cards for these operations. When working on record books with graphics cards with high data processing capacity, electricity consumption occurs at the same time. According to a news on the website called Ars Technica; It is stated that the annual amount of energy consumed to produce bitcoins via computers or other electronic systems is almost equal to the annual energy consumption of Denmark country.

      As a digital currency, blockchain technology is used not only by bitcoin, but also by other electronic money. Let’s take Ethereum as an example.

As a result; Although the exaggerated price changes in digital money instruments, which are tried to be launched as the most popular and easy way to make money today, are not normal, and the working style underlying this technology is quite logical, the price of the produced digital currencies varies widely, which necessitates the need for those who want to trade on this platform to be cautious. reveals. I would like to express once again that those who want to make money on this system should be very careful.

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