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How is blockchain used in Bitcoin?

 

 

Bitcoin utilizes blockchain technology to securely and transparently record transaction histories. Here's a simple explanation of how Bitcoin uses blockchain:  

Recording Transactions

When Bitcoin is sent to someone, the transaction is broadcasted to the network. For example, if person A sends Bitcoin to person B, this information is recorded in a "block," which is like a single page of data.

 

Verification of Transactions

Next, the network collectively verifies the transaction. Numerous computers participating in Bitcoin's network (called "miners") check the accuracy of the transaction by verifying:

　　　Does person A actually own the Bitcoin they are sending?

　　　Is the same Bitcoin being sent to multiple recipients?

 

These checks are performed through computations conducted by the miners.

 

Adding Blocks to the Chain

Once verified, the transaction is grouped with others into a "block." This block is then added to the existing "chain" of blocks, updating the blockchain.

 

The blockchain serves as a continuous, immutable ledger of all Bitcoin transactions since its inception. This ensures that all transactions are recorded accurately and securely, preventing fraud or double-spending.

 

Security and Transparency

Transactions added to the blockchain are shared with all participants in the network. This decentralized record makes altering past transactions nearly impossible. Similar to a court record, these transactions are visible to all and cannot be tampered with.

 

Mining and Rewards

The process of verifying transactions and creating new blocks involves computational work, known as "mining." Computers (miners) performing this work are rewarded with Bitcoin. Miners participate in the network to earn these rewards.

 

Summary

Bitcoin relies on blockchain to record transaction history, verify accuracy across the network, and make all transactions traceable and resistant to tampering. Thanks to blockchain, Bitcoin operates as a decentralized, trustworthy currency without a central authority.

 

 

By 'participation,' you mean computers, not people, right?

 

 

That's correct! Participants (or overseers) in the Bitcoin system are not people but computers. Specifically, computers called 'miners' from around the world participate in the Bitcoin network to verify and approve transactions.

 

Roles of Miners (Computers):

　Transaction Verification: Miners calculate and check whether Bitcoin transactions are valid. 

　Creation of New Blocks: Valid transactions are grouped into new blocks, which are then added to the blockchain. 

　Receiving Rewards: Miners performing this work (called 'mining') are rewarded with Bitcoin for creating blocks and verifying transactions. 

 

In essence, computers monitor and approve transactions to ensure the Bitcoin system operates securely and accurately. Instead of people manually verifying transactions, computers perform complex calculations to validate them, making tampering extremely difficult.