1. QiAi QuestsHome
  2. AI & Tech Insights

What is Bitcoin based on (What is Bitcoin based on as the underlying technology)?

• AI & Tech Insights • 107 views

Bitcoin is based on the invention of Satoshi Nakamoto and has been evolving for

What is Bitcoin based on (What is Bitcoin based on as the underlying technology)?

Bitcoin is based on the invention of Satoshi Nakamoto and has been evolving for the past few decades. Its main feature is being a peer-to-peer electronic cash system. Bitcoin is supported by an open-source software (such as SHA256, SHA-256 algorithm); it can be exchanged with fiat currencies like the US dollar or the euro; and it can also be used as a legal tender.

Bitcoin was initially introduced on December 16, 2014, but over time, this cryptocurrency has undergone significant changes. From this perspective, the main purpose of Bitcoin’s creation was to eliminate the need for people to rely on traditional forms of storing value and trust. So what is Bitcoin based on? Firstly, Bitcoin is a digital asset that is fungible and completely anonymous, making it considered a secure and efficient investment choice. Secondly, Bitcoin does not rely on any other commodity like gold to store value; instead, it is because it is “limited in supply and indivisible.” The third reason is its consensus mechanism, which means that if someone wants to use it, they do not need to own their own wallet address or password. Fourthly, as Bitcoin does not involve any centralized institutions, there are not many nodes in the network.

What is Bitcoin based on as the underlying technology?

According to CCN reports, Bitcoin is generated through a set of mathematical algorithms and uses hash functions in cryptography. This concept was first introduced by Satoshi Nakamoto in 2008.

The core idea of Bitcoin is to combine blockchain technology with digital encryption. In simple terms, it ensures transaction security, traceability, and prevents double spending through a consensus mechanism (such as “timestamps” or “zero-knowledge proofs”), solving the reason why the traditional monetary system cannot achieve decentralization.

This article and pictures are from the Internet and do not represent qiAiAi's position. If you infringe, please contact us to delete:https://www.qiaiai.com/ai/24779.html

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 08/17/2023 18:01
Next 08/17/2023 18:23

Related recommendations