What is Bitcoin history || and what is Bitcoin and Blockchain || and how to create new bitcoin .?

 Little bit information about History and what is Bitcoin..   

Bitcoin is a cryptocurrency or digital currency or A bitcoin is a peer to peer cash system.Which is develop by Satoshi Nakamoto in 2008 and the first version of Bitcoin is 0.1 which written in C++ by Satoshi. The very first blockchain in the world was bitcoin. It allows any two people to pseudonymously send money to each other no matter where they are in the world that's why it called borderless currency.

Bitcoin is Decentralised

The main benefit of bitcoin is it didn't require any centralized authority or institution to operate and that uses rules of cryptography for regulation and generation of units of currency. Bitcoin falls under the scope of cryptocurrency and was the first and most valuable among them. It is commonly called a decentralized digital currency.

It uses rules of cryptography for regulation and generation of units of currency. Bitcoin falls under the scope of cryptocurrency and was the first and most valuable among them. It is commonly called a decentralized digital currency.

The main goal of white paper has to describe how the different parts of the Bitcoin protocol would operate and be kept securely. A new type database called a Blockchain  would keep track of a single history of all bitcoin transactions and it will be maintained by everyone in the network. The database would be publicly available for anyone to view and inspect and anyone can download a copy of  this database (copy of the Blockchain database). This  provides data redundancy and make sure that data is never lost  but also provides a way for anyone to verify the transaction in the database themselves.

A block in the database just stores a sequence of transaction and block of transactions is called Blockchain.

 

Each block is identified by an incrementing number and a unique SHA256 has .
The hash for a block is calculated using the transaction inside of it as well as the previous block's hash, which forms a chain of hashes. The data in the block is secured using a cryptographic algorithm called proof-of-work, which also keeps all members of the network and the database in sync to prevent double-spending.   

Proof-of-Work is used to generate new blocks for the database is called mining(Anyone on the network can be a miner), and the reward for a mining a new block(a new block is mined roughly every 10 minutes, which include the latest set of varified transactions) is given to the miner by creating new Bitcoins in the system.This is the only way new Bitcoins can be created. 

Working of Bitcoin or to Send a Bitcoin Transaction:

You first need have a Bitcoin account. An account can be created very easily by generating a cryptographic key pair, which generates a public key and a private key.

A hash of the private key is used as your account address and your private key is kept secret to prove that you have ownership of this account.  

In order to send bitcoin you first need to get some from someone else. This could be a friend you know, or an online exchange you trust. To send a Bitcoin from your account you send a broadcast a message to the Bitcoin network that included the amount and the destination account.

Before broadcasting, you would sign the message your private key to prove that you are authorized to make this transaction for the account. Your transaction would be broadcasted to the Bitcoin network nodes including the miners, who verified that it is correctly formatted. The distribute to all broadcast transactions and blocks to each other in the network creating a shared database of blocks and transactions.

When a transaction is first received by the network,it is considered unconfirmed.After the transaction is added in block by the miner then it considered as confirmed.

 Example of a Bitcoin transaction

Alice wants to use her Bitcoin to buy pizza from Bob. She’d send him her private “key,” a private sequence of letters and numbers, which contains her source transaction of the coins, amount, and Bob’s digital wallet address. That “address” would be another, this time, the public sequence of letters and numbers. Bob scans the “key” with his smartphone to decode it. At the same time, Alice’s transaction is broadcast to all the other network participants (called “nodes”) on her ledger, and, approximately, ten minutes later, is confirmed, through a process of certain technical and business rules called “mining.” This “mining” process gives Bob a score to know whether or not to proceed with Alice’s transaction.

The transaction between Alice and Bob

What is Blockchain ?

• A P2P(Peer 2 peer) network that maintains some shared state.
• Data is stored in a linked-list-like data structure.
• Hashing is used to prevent data tampering.(That means once data can added to the blockchain can never be modified, if the block data was changed then sequence of the hash is change)
• Consensus protocol defines rules for creating new blocks (it uses protocol proof-of-work)