Alex Metzger Alex Metzger 27.09.2021

Opinion: What Is The Use Of Blockchain In Bitcoin Network?

Bitcoin is a digital version of cash that can provide a hedge against inflation. Inflation refers to a change in money supply and an increase in the value of goods and services. Bitcoin is majorly popular in the marketplace due to its store value.

Bitcoin trading and investment progression are consistently profitable. Some websites can help you like about bitcoin. The store value of bitcoin is exceedingly high, and bitcoin has offered much higher returns to its investors and holders. 

However, there is a massive range of applications for bitcoin rather than just being an investment asset. Bitcoin underlies the robust technology of blockchain. Blockchain is a public distributed ledger and is one of the most famous technologies in the financial segment.

 Everyone is familiar with bitcoin and its store value, but only a few people know about the existence and reliance on the bitcoin complex. All the more, most cryptocurrency enthusiasts don't even know that a technology like a blockchain exists. Below mentioned is everything you should know about bitcoin's blockchain and its use in the bitcoin network. So why are you waiting? First, let's have a look.

What is a Blockchain?

Satoshi Nakamoto, the inventor of bitcoin, invented the concept of blockchain. Standardized blockchain refers to a database that can store any information. The concept of blockchain has fascinated ample organizations. After bitcoin's blockchain, there is now a much more advanced blockchain in the industry.

 All the more, blockchain is the foundation of decentralized finance. Most decentralized institutions use the blockchain of ethereum. To sum up, blockchain is a structured database that allows you to store every possible transaction and database. 

What is the use of blockchain in terms of bitcoin?

As mentioned ahead of that, Satoshi Nakamoto invented blockchain. The so-called inventor introduced the concept of blockchain to record bitcoin transactions. Since bitcoin is entirely decentralized and virtually maintains decentralization aspects, blockchain is indispensable.

 You are familiar with the fact that databases of the traditional banking system are in safe vaults. Moreover, third parties charge a considerable amount of funds to store such information. To mitigate the involvement of these third parties, Satoshi Nakamoto invented a public database. 

Blockchain of bitcoin is one of the largest public databases as it contains every possible information of the bitcoin complex. In a nutshell, the blockchain of bitcoin stores information regarding bitcoin's transactions. Not merely bitcoin's transaction, it also records intelligent contracts. All information on the blockchain is irreversible. 

Who Maintains The Blockchain?

The Bitcoin complex processes thousands of pieces of information daily. Recording such an amount of transactions on an extensive database in a structured form is very challenging. However, bitcoin miners continue and proceed with the blockchain network. 

Bitcoin miners verify bitcoin transactions by contributing computing capital. Once these miners have verified the transaction, the transactions are on the blockchain.

 Miners ensure that every recorded transaction is verified and devoid of illegal activities, especially double-spending. According to the proof of work mechanism, a miner must solve a math puzzle to verify the transactions. All the more, bitcoin miners have to solve the math puzzle in a given time of 10 minutes. 

Features of Blockchain 

Blockchain or the public distributed ledger provides excellent features. Some of the utmost prominent features include immutability, transparency, adaptability, flexibility, and many more. Here is a brief explanation of the features rendered by blockchain. 

Immutability- Immutability is one of the utmost highlighting features of blockchain. Immutability refers to the inalterability of any database stored on the blockchain. Such progression means that you cannot alter a single unit of database present on the blockchain. 

Ample aspects maintain the immutability of the blockchain. For example, every block references a previous block; every node has a copy of the blockchain.

Transparency- transparency is an exceedingly attractive feature of blockchain. Bitcoin's blockchain is public and accessible, which means you can even download your blockchain copy. The current size of a blockchain copy is 350 Gigabytes, and the size of each block in a blockchain is one megabyte. 

The portion mentioned above is everything you should know about the work of blockchain in bitcoin.