Bitcoin and Blockchain Technology

Blockchain For Cryptocurrency

Based on distributed ledger technology, Bitcoin was the first implementation of a cryptocurrency. This was invented in 2009, and since from the day of its invention, it has been gaining popularity and traction by business owners seeking for a distributed trust model. The Bitcoin consensus algorithm is based on proof of work [POW]. The transactions are collected into blocks in PoW by miners and will be appended for the blockchain only if the miner could be able to solve a cryptographic challenge, which needs much computational power for being solved. Only by guessing, and ensuring neutrality the cryptographic challenge can be solved.

Other forms of proofs that have been incorporated and invented into other solutions, such as, the proof of stake in Ethereum and proof of elapsed time introduced by Intel.

A very old digital currency problem was been solved by Bitcoin and blockchain, wherein many other digital currencies tried for solving in the past called as the double spending problem. Spending the same digital currency twice is nothing but Double spending, and the Bitcoin solved this by ensuring distributed consensus.

The blockchain technology is providing an another cryptocurrency benefit, wherein the transfers can be able to cross the national boundaries in seconds, with minimum fees and without going via third party entities like banks.

The Venezuela and the US Government are presently investing in resources that are devoted for researching and for creating their own cryptocurrencies, which are altered for their specific needs. The Bitcoin and other altcoins,, despite of its vast success, the short comings in the design have limited the global adoption and expansion of cryptocurrencies. For the purpose of overcoming governmental requirements and concerns, such as protecting against money laundering, illicit trades, volatile value and the lack of recognition by trusted parties, the expansion of cryptocurrency use will be needed.