Bitcoin is the precious reward of a complicated route named bitcoin mining. Bitcoin mining is the route of authorizing transactions to mitigate the double spending in the network of bitcoin. Bitcoin has complexed on the public distributed ledger.
There is a huge conception regarding bitcoin and blockchain that blockchain does not have any existence without bitcoin. However, the fact is that bitcoin is the scalable component or model of blockchain technology.
In a nutshell, blockchain can easily survive without bitcoin, but bitcoin cannot. Blockchain, alongside bitcoin mining, is the essential component of the bitcoin complex. There are websites with the link which can help you in getting considerable results in your bitcoin expedition. Below mentioned are some of the reasons why blockchain is exceedingly essential for bitcoin; let’s have a look.
Public Distributed Ledger Holds Bitcoin Transaction Information!
The public distributed ledger or blockchain is subjected to ample roles in the bitcoin complex. However, the utmost crucial one is holding information regarding bitcoin transactions. You might be wondering how the transaction on the bitcoin blockchain is processed. Bear in mind that only verified information set is verified on the blockchain.
Bitcoin miners, as mentioned ahead, are correspondingly essential for the bitcoin complex. Bitcoin miners verify the bitcoin transaction information and process the information to the blockchain. You might be wondering how and why bitcoin miners verify the transaction.
Why Bitcoin Miners Verifies Transactions?
As mentioned ahead, blockchain only processes the verified transactions, and these transactions are verified by the bitcoin miners but why. Bitcoin miners verify the transaction information in order to eradicate double-spending; double spending is the progression of sending bitcoin units to two diversified wallet addresses.
The wallet address is just similar to the bank account number rendered to you by your traditional bank. All the more, as the reward of bitcoin mining, these miners avail a block reward in the form of bitcoin and transaction cost of that explicit transaction. You might be wondering that why bitcoin miners will mine bitcoin once the limit of bitcoin is reached as there will be no bitcoin to render as a block reward.
As mentioned ahead, the bitcoin mining block reward consists of bitcoins and the transaction cost. Even if the concept of block reward diminishes from the bitcoin mining industry still, these miners will avail the transaction cost of an explicit transaction. You might be wondering that transaction cost is exceedingly insignificant in contrast to the block reward.
However, by the end of 2140, bitcoin will be established as a robust payment method, and thousands of transactions will occur in the bitcoin complex in just a single hour. The transaction cost availed by the bitcoin miners will correspondingly incline to sustain the interest of bitcoin miners in the bitcoin mining industry.
How Bitcoin Miners Verifies The Transactions?
Bitcoin miners verify the transaction by solving an explicit math puzzle. The math puzzle is merely solved once the hash rate generated by the bitcoin mining rig is just equal to the pre-defined hashing function. In a nutshell, verifying bitcoin transactions require a bitcoin mining rig and a bitcoin mining programmer alongside a robust electrical source.
Once these miners produce the hash targeted hash, the transaction is verified and is processed to the blockchain of the bitcoin complex in the form of a block. The blocks of blockchain contain the information verified by bitcoin miners alongside three other components.
Why Can Bitcoin not Use Any Other Database?
Blockchain consists of some undeniable features such as immutability and smart contracts, which makes it stand out among other database systems. The traditional database system is not subjected to an exceeding extent of transparency and accessibility as of blockchain. All the more potential of the bitcoin blockchain is much more intense in contrast to this database system.
You might be wondering why the bitcoin blockchain cannot be altered. First of all blockchain of bitcoin is subjected to a highly encrypted cryptographic hashing function, and the block in the blockchain is processed with reference to the previous block.
The reference to the previous block feature forms a chain of a block, and in order to alter the blockchain, you need to alter the second most block of the blockchain as the foremost block or genesis block is not subjected to any sort of hashing function.
This is how blockchain is essential for the bitcoin complex.