What is the Blockchain?
Arguably the most exciting aspect to come from the cryptocurrency revolution is the Blockchain. The Bitcoin blockchain is a public ledger of all the transactions ever made on the Bitcoin network and a record of who owns the coins. When a transaction is made, it is placed in a queue called the ‘mempool’, where it waits to be placed into the next ‘block’ in the blockchain.
These blocks of transactions are confirmed by large computer networks in either a ‘pool’ operation (called a P2Pool), or as a single, large operation run by a company. The computers and operations who confirm transactions are known as ‘miners’ who compete to solve a series of complex computations. Computational power is consumed to cycle through random combinations of numbers to solve an equation known as a ‘hash’. When the computer network produces a number that matches the hash, they are awarded the opportunity to confirm the block. Once the block is confirmed, the transactions waiting in the mempool are placed into the block and the owner of the computer network who confirmed the block is rewarded in bitcoins for their work. Read more about in our Blockchain Technology blog.