Want to really understand how bitcoin works Here’s a gentle primer
0Want to really understand how bitcoin works Here’s a gentle primer.
The soaring price of bitcoin—the virtual currency is now worth more than $250 billion—has gotten a lot of attention in recent weeks. But the real significance of bitcoin isn't just its rising value. It's the technological breakthrough that allowed the network to exist in the first place.
Bitcoin's still anonymous inventor, who went by the pseudonym Satoshi Nakamoto, figured out a completely new way for a decentralized network to reach a consensus about a shared transaction ledger. This innovation made possible the kind of fully decentralized electronic payment systems that cypherpunks had dreamed about for decades.
As part of our recent efforts to shed light on the mechanics of the popular cryptocurrency, today we'll provide in-depth explanation of how bitcoin works, starting with the basics: how do digital signatures make digital cash possible? How did Nakamoto's invention of the blockchain solve the double-spending problem that had limited earlier digital cash efforts?
We'll also explore more recent happenings like the block size debate that has divided thebBitcoin community into two warring camps. And finally, we'll look at the future and talk about why bitcoin's design could make it a uniquely fertile platform for innovation in the coming years. As you're about to see, there's simply a lot to cover.