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Miners achieve this by solving computational problems that allow them to integrate transaction blocks. The role of the miner is to secure the network and process every Bitcoin transaction. The people behind Bitcoin mining are called Miners. Let’s move to understand the process of Bitcoin’s transactions.īitcoin mining is done by high-powered computers that solve very complex mathematical problems. Now that we understand the basic technology behind the world’s most famous digital currency. Changes are also completely transparent to everyone. This creates a decentralized distribution chain that gives everyone access to the document at the same time.

When we create a document and share it with a group of people, the document is distributed instead of copied or transferred. Thus, illegally modifying the data inside the Blockchain is impossible.Ī simple analogy for understanding blockchain technology is a Google Doc. Each block in the Blockchain contains a cryptographic hash of the previous block such as time and transaction data. The technology is known as Blockchain Technology.Īlso sometimes referred to as Distributed Ledger Technology (DLT). It is important for potential investors to have a basic understanding of the technology that drives Bitcoin. Now, let us dive deeper into blockchain technology to understand it better. Within seconds, you can see every transaction made by the individual. However, it is possible with Bitcoin as every transaction is stored in the public ledger.Īll you need to do is get the person’s public address and have it searched on a Blockchain Explorer. The Blockchain technology makes it possible for everyone to trace the history of Bitcoins to stop people from spending coins they do not own, making copies or undo-ing transactions.įor instance, in Malaysia, there is no way for you to trace the transaction history of another person from your CIMB bank account. Bitcoin holders can send Bitcoin to each other and every transaction will be stored in a public ledger called the Blockchain. As a digital currency, each Bitcoin is basically a computer file that is stored online.