Bitcoin

Several things happen before an operation is included in the system when transacting on the Bitcoin network.  Unconfirmed transactions first accumulate in a pool known as mempool. Then, miners choose a transaction at random (but most prefer those with high fees) and add it to a transaction block. They then verify the transaction by solving complex mathematical problems, i.e., Proof of Work.  Next, the network confirms the block and adds it to the blockchain. Blocks added to the blockchain amount…

Bitcoin is a groundbreaking invention that spurred a new financial revolution with long-term consequences globally. Bitcoin could very well be the most important invention since the creation of the internet. Economy experts see it as the dawn of a new age in which electronic cash and virtual transactions will reshape our understanding of currencies, investments, and financial intelligence. Bitcoin in a nutshell: The origin story of Bitcoin is shrouded in mystery. The first official reference to it was made on October…

As Bitcoin gains increased mainstream adoption currently being used as a means of payment, the number of transactions on the Bitcoin network has increased significantly over the past few years. Unfortunately, with increased transactions, not all of them are verified and added straight away in the blockchain. For several reasons, Bitcoin transactions sometimes fail to confirm or become "stuck." One reason transactions get stuck is miners "prefer" transactions with transaction fees and include them in their blocks almost immediately. Transactions with…

Like regional currencies such as the US dollar, Bitcoin is a digital currency with a finite, limited supply like Gold or Silver. Since it is based on new technology and nearly unregulated and borderless, it is highly volatile, featuring wild fluctuations in its purchasing power, which can happen intermittently over a short time. Volatility is the main reason seasoned investors in traditional markets tend to be wary of Bitcoin. However, it is also why other investors embrace it due to…

Considered one of the most critical events in the Bitcoin community, the Bitcoin reward halving is the process by which the incentives available to miners decrease by half of what it currently is. Founder Satoshi Nakamoto implemented the Bitcoin Halving mechanism to incentivize the network and slowly distribute the 21 million currency supply. Historically, the Bitcoin reward halving has been known to be a prelude to a massive bull run. However, on 9 July 2016, the market saw a surprising turn of…

Understanding the difference between Bitcoin, Bitcoin Cash, and Bitcoin SV first requires looking into what hard forks are. Then, they explain how the two latter networks or cryptocurrencies were created from Bitcoin. Blockchain developers forked Bitcoin to create Bitcoin Cash (BCH) the same way they forked Bitcoin Cash to create Bitcoin SV (Satoshi Vision, BSV). So, it is right that BCH and BSV are tweaked versions of BTC. Hard forks are irreversible or permanent changes implemented on a blockchain network.…

Bitcoin's rapid growth has indeed been something of great wonder. In recent times, the coin has gained increased usability, evidenced by increased transactions-nearly 270 000 transactions per day with an increased number of online merchants who offer the ability to pay using Bitcoin.  While Bitcoin's transactions have often been described as anonymous, the coin isn't entirely anonymous. Yes, Bitcoin transactions are recorded and made public but are linked only with an electronic address. This, therefore, means that whatever you purchase…

Throughout its existence, Bitcoin has only been capable of processing around seven transactions per second. Growing at a rate that most people would call unsustainable, Bitcoin's scalability problem has slowly become a hindering issue. While a low transaction count was initially enough, the system has been congested for a few years.  As a result, transactions today take a long time to process, and transaction fees are excessive due to the demand. Ten years later, scalability is still the biggest problem for…

As 2022 ends, we find ourselves moving away from the conclusion of Bitcoin's first decade. In less than two weeks, Bitcoin will turn 14 on January 3rd, 2023, and just like every other year, it will be a historic moment. Indeed, during such intervals, we are invited to contemplate its existence and relevance. Do we need Bitcoin, and if so, why? If necessity truly is the mother of invention, then Bitcoin was created out of necessity. This necessity is born…