Current value of Bitcoin currency in the market



Current value of Bitcoin currency in the market

Basically, Bitcoin is a digital file that stores records of all transactions - from the moment the first crypto coins appeared until the last transaction in which they participated. Entries are grouped into blocks, each of which contains information about part or all of recent transactions not previously entered in the register, as well as additional service information.

Blocks are added to the chain - blockchain. This chain is public, i.e. Each participant can follow it the entire history of transactions, as well as calculate the balance of any Bitcoin address by looking at all the operations in which he was involved. It is impossible to change the data entered into the blockchain. Any information recorded in the block remains in it forever. A copy of the transaction registry is stored by each member of the network and is updated simultaneously with other copies. At the moment, over 400 thousand blocks have been created in the network. The exact number of blocks can be found.

Block structure

Each block contains the required elements - a header and a list of transactions. The header includes the hash of this block, the hash of the previous block, transaction hashes, and additional information about the block. A hash function (hashing) is a mathematical transformation of the original data array of arbitrary length into a unique alphanumeric string of fixed length, which, in essence, is a cipher and identifies the input element. Thus, from any unique data set, we can get a hash code (hash, hash sum), which is also unique.

The following is a list of transactions conducted from the moment the previous block was calculated to the calculation of this block. In the first place is always a record of the generation of new coins, which the miner will receive as a reward for calculating the block. Next, come other transactions that have not yet been added to the registry. Each of them includes 3 elements: the sender address, the amount of bitcoins sent and the address of the cryptocurrency recipient:

Know how to find out blockchain

In order for a block to fall into the blockchain, it needs to be calculated. Find the header hash value associated with it that is less than the specified threshold. In other words, the task is as follows: select the input data so that the hash starts, for example, with 17 zeros. In fact, in this case, a usual enumeration of possible hash options occurs. As soon as the node finds a suitable option, it announces to the other nodes that the block has been calculated and after checking that the other nodes have correctly calculated it, during which the hash is calculated once, the block falls into the blockchain. You can make all kind for bitcoin transaction at bitcoin storm website

The threshold indicated above determines the complexity of the calculations, i.e. how many header options need to be sorted so that the block can get into the registry.

The choice of exactly 10 minutes was arbitrary. Just a very short period would threaten instability, and a very long period would delay confirmation. If the power of the network grows, the complexity also increases (the number of leading zeros increases), if the power drops, the complexity changes after it. Thus, the ratio of computational power to computational complexity always remains constant, as does the time required to generate each new block.

Sometimes more than one block is decided at the same time and several branches are obtained. In this case, the circuit continues after the first block received.

Others, due to the peculiarities of transferring blocks from node to node, could receive blocks in a different order and could build after their first received block. A draw disappears when someone decides the next block. As a general rule, everyone goes to the longest branch. Because of the calculations, blocks are rarely solved simultaneously, but even less often this happens several times in a row. As a result, the blockchain is rapidly stabilizing, i.e. all have the same blocks at the end of the chain.

The fact that there is uncertainty at the end of the chain is important for transaction security.