Here’s How Bitcoins Can Beat The Smartest Hacker

In 2009, when Satoshi Nakamoto seemed futuristic with ideas. Years later, at jeffLenney.com you can find the bitcoin being used as a medium of financial transaction. There is another website www.livebitcoinnews.com dedicated solely to understand this cryptocurrency. You can read about the bitcoin index and other technical analysis on this latest form of currency.

History Of Bitcoin
18 August 2008 is a red-letter day that marked the beginning of the bitcoin revolution. It was on this day that bitcoin.org was registered. Three months later, there emerged a link to a paper that was authored by Satoshi Nakamoto. The paper titled “A Peer-To-Peer Electronic Cash System” was available for public viewing on a cryptography forum.

January 2009 witnessed the release of the first open source bitcoin merchant, and later, bitcoins were issued. The first supporter and user of the bitcoin was Hal Finney, a programmer who received around 10 bitcoins from Nakamoto. Soon, there were other similar transactions, and an estimated 1 million bitcoins have been mined since then.

Nakamoto disappeared from the face of bitcoin, and soon, Gavin Andresen took over as the lead developer at Bitcoin Foundation.

10,000BTC= 2 Yummy Papa John's Pizza
This is true. The value of the bitcoins was fixed by the participating members of the online forum. In one of the transactions, 10,000 bitcoins (or BTC) were used to purchase two delicious pizzas.

Security Breach
It was in the year 2010 when there was a breach of security in the use of bitcoins. It was seen that transactions were not recorded in the blockchain which led to the creation of a large number of bitcoins. It was on August 15 that the error was identified. It was observed that nearly 180 billion bitcoins had been generated in a transaction and they were inadvertently sent to two addresses.

Later, the wrong file was identified, and the error was fixed. This was the only major breach of security in the entire history of the bitcoins.

Bitcoin Mining
Have you ever wondered if you could outsmart the bitcoin blockchain? Is it possible that the system can make use of the same bitcoin twice? The answer to this lies in bitcoin mining. To explain this concept, visualize a large mining system or a computer that collects a set of bitcoin transactions and converts it into a mathematical puzzle.

The first mining machine that can solve the cryptic puzzle correctly announces it to the other systems on the network. It is the sole responsibility of the other miners to verify the accuracy of the solution and ascertain if the sender of the bitcoin has the right to use the money. If a majority of the miners approve the answer to the puzzle, this block is moved to the ledger, and the other miners move on to the next block. Hence the name ‘blockchain.'

The mining machine that deciphers the puzzle correctly receives 25 bitcoins as a reward only after another set of 99 blocks have transferred to the ledger. This gives other miners a fair chance to participate in solving the puzzle and provides a layer of security from thieves and stops the machine from double-spending a bitcoin.

If ever there was a heist, digital thieves have to be smart enough to rewrite the entire blockchain. In order to do this, they have to possess nearly half of the system’s problem-solving capacity. This activity is practically impossible as bitcoin miners have 10,000 times more power when compared to the world’s smartest supercomputer.

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