Bitcoin — the first decentralized currency — has been around for over eight years now. In the past, I was dismissive of it and other cryptocurrencies. The fact that cryptocurrency like Bitcoin has the potential to radically reform banking is not lost on me but is way outside of the scope of this article. Yes, that’s exciting to me. No, I don’t think crypto is a magical cure for what is wrong with global capitalism, but that’s really not the point here.
When I started looking into things further, and I’m super excited about the technology behind Bitcoin, blockchain.
What Is A Blockchain?
My conceptual misunderstanding of Bitcoin when I first became aware of it, was I thought of coins as being awarded for doing computation. Yes, that is is how Bitcoin works, coins are distributed amongst those providing processing power to verify transactions. It’s a smart way to incentivize adding the computational resources the system needs.
While the coins are created through “mining” they can be exchanged for Dollars, Euros or other traditional currencies. This gives them value and an incentive to convert old currency into Bitcoin.
The mechanism
Source: https://managewp.org/articles/16219/blockchain-technology-will-change-wordpress
source https://williechiu40.wordpress.com/2017/10/01/blockchain-technology-will-change-wordpress/
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