Now that you understand what these terms mean, it is important to know that Bitcoin is decentralized. The workload of the network (for example transactions) is distributed across multiple machines without relying on one central server. This is called 'decentralized'. This means that all machines work together to approve a transaction. So if 1 machine is hacked or fails, the transaction can continue without any (security) problems. This is also one of the reasons that Bitcoin has never been hacked.
So you can actually see decentralization as an independent network where no one is the boss. Transactions are traded peer-to-peer and the users check each other.
3. Blockchain
Blockchain technology is often called the greatest invention after the internet, but what is it exactly? A blockchain is a kind of database in which information can be stored. You can see it as small blocks of information that are added to a long chain. Each new block that is added contains information about the previous and current block (such as time, price, wallet address, etc.). If the old and new block do not match, it will not be connected to the chain.
This chain is therefore becoming longer and mexico telegram data longer and can never be changed. Every transaction is stored forever. This technology can therefore be used to perform transactions. The advantage of a blockchain is that every transaction that has ever been made can be traced forever and cannot be undone in any way. With a blockchain it is therefore possible to permanently record a transaction, without the need for a third party.
4. Bitcoin
Now we finally come to Bitcoin. Almost everyone has heard of it these days, even my grandma asked me recently what exactly a Bitcoin is. Bitcoin is the first decentralized digital currency ever created, and is based on cryptography , decentralization and blockchain technology .
The currency was created by Satoshi Nakamoto . But who this person is, nobody knows, Satoshi has always remained anonymous. The special thing about Bitcoin is that it was determined in advance how many coins would be available. This number can never be adjusted at a later stage. Despite the fact that it is digital, it is therefore impossible to ever create additional coins. A total of 21,000,000 Bitcoins have been created, and that is all we have to do.