What is bitcoin?
Bitcoin is a cryptocurrency that was created in 2009 by Satoshi Nakamoto. Bitcoin uses peer-to-peer technology to operate without any central authority or banks. In other word,
Bitcoin is a digital or virtual currency, created in 2009 that uses peer-to-peer technology to facilitate instant payments.
What is Mining, Blockchain and Blocks?
To get bitcoins, users are awarded bitcoins after verifying transactions sent through the network. This process is called mining. Miners can use specialized software to help them verify and record bitcoin transactions into blocks, adding transaction records to public distributed ledger known as Blockchain.
Each block contains a cryptographic hash of the previous block’s header. A reward of 50 newly issued coins is given to miners who identify solutions (or hashes) that result in a longer chain. As such, the difficulty of producing a valid proof-of-work increases over time, ensuring that the average time between two blocks remains 10 minutes.
The coin supply is tightly controlled by the underlying protocol. After reaching its maximum total issuance of 21 million coins, no additional Bitcoins can be generated. In this way, the number of Bitcoins that exist is fixed and they cannot be inflated by miners. However, the rate at which new Bitcoins enter circulation does increase due to the halving of the block generation reward.