What is Bitcoin Blockchain?
Blockchain is nothing but a sequence of immutable records, digital ledgers based totally on the peer-to-peer community that propels transparency. Also, it is a developing bunch of records, generally called blocks, forming a link together with the help of several cryptographic principles. In this post, we will also talk of the size of Bitcoin Blockchain.
A Merkle Tree represents every block in the chain. A cryptographic hash of the previous block, also including a time-stamp, and transaction details if any is there. And, due to its design, a blockchain is immune to change in its data. As the data, as soon as recorded, in any given block can’t be altered except alteration of all the different blocks.
For use as a disbursed ledger, a blockchain is generally managed by using a peer-to-peer network. These, together adhere to a protocol for inter-node communication and validation and authentication of new blocks. Blockchain information is now not unchangeable. Thus, they can also be viewed as impervious by using a plan and exemplify an allotted computing gadget with excessive Byzantine fault tolerance.
Are Bitcoin and Blockchain all same?
No. They are not. Bitcoins are simply online currencies or cryptocurrencies, while the technology that is there to manage bitcoins is the blockchain. Bitcoin was build to bypass government currency controls and simplify online transactions by getting rid of third-party payment processing subsidiaries. Bitcoin transactions are stored and transferred using a distributed ledger on a peer-to-peer network that is open, public and anonymous. The technology that maintains the Bitcoin transaction ledger is Blockchain.
How Does the Bitcoin Blockchain Work?
We have already seen that, the blockchain is nothing but a digitally allotted ledger that is comprised of Bitcoin transaction records. This digital ledger is distributive across a peer-to-peer community and is not central. Thus, implying it is there without any central authority. Therefore, the community/network participants must conform to the validity of the exchanges/transactions before they can be recorded and stored. This agreement is known as consensus and is achieved through a process of mining bitcoin.
After an individual uses Bitcoins, the miners engage themselves in complex and resource-intensive computational equations to verify the validness and authenticity of those transactions. Through the whole process, a Proof of Work that meets certain requisites emerges. Though, Proof of Work is a small bit of data that is costly and time-consuming to produce. But, it can be easily verified by other miners. To be a valid transaction on the blockchain, an individual record must have a Proof of Work to prove that an agreement happen. That is to say, a consensus was achieved before it got added to the blockchain. By this logic, transaction records cannot be tamper with or manipulated post addition into the blockchain.
Bitcoin Blockchain Size
The bitcoin blockchain size is always subject to continuous increase due to the ever increasing number and amount of transactions taking place. Presently, the bitcoin blockchain size is around 16.5 GB, however, the bitcoin blockchain size is increasing at the speed of around 1 MB per hour. If Bitcoin Network were to process the same number of transactions as Visa does per second, the bitcoin blockchain size would increase by 1 GB per second. Thus, in the near future as the number of transactions will increase as will the size of the bitcoin blockchain.
Is Blockchain Only Compatible with Bitcoins?
Huge develoment and enhancement in the blockchain technology happen to support cryptocurrencies. This is the main reason due to which people still do not realize that blockchain technology is adaptable for use in other fields. Lot of substantial modification and updation has to be done to meet the high standards and demands of the businesses of today.
The characteristics features which distinguish the Bitcoin blockchain from a blockchain design for a business are :
- Identity over anonymity: While blockchain bitcoin thrives due to unmatched anonymity, businesses have Know Your Customer(KYC) and other obligations. Thus, they are design keeping in mind the emerging compliance guidelines.
- Assets over cryptocurrency: Blockchain is also applicable to a broader area of assets in distributed verticals rather than just cryptocurrencies like Bitcoin and Ethereum.
- Partial acceptance of Proof of Work: Consensus or Agreement in a blockchain is achievable via the process of ‘selective endorsement’. Herein, for instance, if one transfers money to any third person , then the recipient’s bank, our bank, and a payment gateway will verify and confirm the transaction.
How does Bitcoin make our lives easier?
No single person or bank maintains the distributed transaction ledger in bitcoins. As, the ledger is distributive in nature and is therefore, available to everyone. Also, every transaction carries a link to the Bitcoin address of whosoever is transacting. What this does is? It makes the money and the transactions very secure indeed, due to decentralized control. The only thing one needs to be aware during transactions is his/her wallet address.
In earlier posts, we have seen that most importantly, when we do a Bitcoin transaction, the transactions are attest with one’s private key. This cryptographic signature is there to allow an individual to prove his/her ownership of the transaction. Thus, there is security, fascination and allurement around this form of online transaction, that is the transactions of Bitcoins.
We know that the world is developing and changing very rapidly. The blockchain technology has made its mark and come into prominence in various countries including India. It has benefited one and all in a very positive way, thereby changing the technological landscape in a manner beholding the good. It is time, indeed that people became proactive and reaped the fruits of this technology and savored it.
In this post, I talk about The Size of Bitcoin Blokchain, and also other topics of confusion like — Are Bitcoin and Blockchain the same? How does the Blockchain work? And other similar questions.
I hope to have to have cleared your doubts about Blockchain Technology and its size. If you have any further queries or suggestions or if you want to say something, then please type in the comment box and I will be there waiting for your comments. Also, if there is any question or query I would promptly answer your call for the answer. Until then, Ta-Ta. Enjoy your day.