Blockchain technology is one of the latest tech innovations that is being implemented in many different sectors, but primarily it is used as the underlying infrastructure of cryptocurrencies like Bitcoin. Actually, its first application was for Bitcoin, which is also the first digital currency.
Today, Bitcoin is perceived as one of the most successful and best-performing cryptocurrencies that has achieved amazing growth during its bull market phase, and it has peaked at a price of more than $60,000 in March 2021.
It is also one of the first virtual currencies to reach a status of a safe-haven asset. That being said, blockchain technology is actually responsible for a lot of the aspects that made Bitcoin one of the top-performing cryptocurrencies of our time.
If you are a complete newbie when it comes to virtual currencies and blockchain technology, in this article, we will explain briefly about blockchain technology Bitcoin and how they are associated.
Overview of Blockchain Technology
Blockchain technology was created as a response to the need for decentralized currency, or decentralized money. Without blockchain technology, it would not be possible for any BTC transaction to be completed without the assistance of any other authority. So, blockchain technology enables the processing of BTC transactions over the Internet.
As a database, the blockchain network is peer-to-peer based, which means that each node or computer system acts as its own server, and the miners who work on these computers are in charge of validating BTC transactions and adding them to the network.
Based on the design of the blockchain network, each action that is recorded stays forever in the system. In other words, each transaction is irreversible. Furthermore, because Satoshi Nakamoto wanted to ensure there is complete anonymity, the personal information about the users of the network remains confidential.
Needless to say, these advantages made Bitcoin a valuable investment over time. In case you want to invest in Bitcoin, there are a vast number of online trading sites that allow you to do so. For example, Bitcoin Storm is an automated trading system that is based on blockchain-based solutions and offers reliable and fast automated trading in a safe environment.
Moreover, it is based on Machine Learning technology, among other subsets of Artificial Intelligence technology, in order to conduct trading at a high win rate by facilitating in-depth fundamental and technical analysis. In fact, you can earn up to $1500 if you start trading here. If you want to open an account on the site, you need to make a deposit of at least $250.
Other Advantages of Blockchain Technology
Because the network was created as a peer-to-peer-based database, it was required to allow complete transparency regarding the other data of the network. Hence, the users can keep each other accountable. Actually, it is pretty difficult for any user to control the network, especially with the increasing number of nodes. Moreover, this type of technology ensures a low cost regarding the processing of the transactions. As a matter of fact, the transaction fees are considered negligible, especially when it comes to international BTC payments.
When it comes to the level of security, there are protocols in the blockchain network that ensure each BTC transaction is safe. For example, proof of work is protocol in that ensures each transaction is valid and it resolves the double spending problem of Bitcoin. Moreover, transparency of the data that is circulating in the network ensures that any potential errors can be noted and resolved.
Beyond the advantages associated with BTC transactions, Bitcoin in it itself is a valuable cryptocurrency, especially because there is a restricted number of Bitcoin tokens of 21 million. So, this is why as the demand grows in the blockchain network, the price of Bitcoin rises, especially since 80% of the total number of BTC is mined to date.