What is Bitcoin and how does it work?

Blockchain is decentralized, which means that it is not controlled by any organization. “It’s like a Google Doc that anyone can work with,” said Buchi Okoro, CEO and co-founder of African cryptocurrency exchange Quidax. Nobody owns it, but anyone who has a link can contribute to it. And when different people update it, your copy is also updated. ”

While the prospect that anyone can edit the blockchain may sound very risky, it is actually the core of what makes Bitcoin secure. To begin with, in order for a transaction block to be added to the Bitcoin blockchain, it must be verified by the majority of all Bitcoin holders, and the unique codes used to recognize users’ wallets and transactions must conform to the correct encryption pattern.

These codes are long, random numbers, making them incredibly difficult to deceive. In fact, a fraudster who guesses the key code in your Bitcoin wallet has about the same odds as someone who wins a Powerball lottery nine times in a row, according to Bryan Lotti of Crypto Aquarium. This level of statistical random blockchain verification codes, required for each transaction, significantly reduces the risk of someone making fake Bitcoin transactions.

How does Bitcoin Mining work?

Bitcoin mining is the process of adding new transactions to the Bitcoin blockchain. It’s a tough job. People who choose to break Bitcoin use a process called proof of work and distribute computers in a race to solve mathematical puzzles that verify transactions.