When bitcoin came into existence at the initial stage of bitcoin, the only essential and essential thing until now is blockchain. You cannot track your bitcoin transaction without a blockchain. In another financial system, there is no availability of this feature. Bitcoin is a decentralized system. Since there is no third party involved, there must be a tracking system that can track all the transactions of bitcoin users for the smoothness of the bitcoin network. So in this article, we will discuss the bitcoin blockchain and how it works.
Meaning of Bitcoin Blockchain
The bitcoin blockchain is also known as a public ledger because everyone accesses it and sees every transaction of spending and buying. You can also see the wallet address of the transferor and transferee. That is why it is called a public ledger.
The blockchain contains all the recently happened transactions, and you can also check the previous transaction of a particular wallet. It includes the previous, current, and future transactions and is stored in an extensive database as per Oil Profit.
What is the reason for calling it blockchain?
Understand what it is, block?
To understand what blockchain is? First of all, you have to understand the block because blockchain consists of two words, “block” and “Chain.”
Block means a particular transaction on the bitcoin network or that will happen in the bitcoin network. Bitcoin block includes the summary of the previous transaction.
Chain is the sequence of all the transactions on the bitcoin platform, whether it is the spending of bitcoins or buying of bitcoins.
So blockchain is a public ledger, and the block is the page of this ledger. In simple words, we use the catalog to store the transactions, and we write all the transactions in sequence. There are pages in the roster, and each page contains a different transaction; and in the case of the bitcoin blockchain, it works similar to the physical register.
In the blockchain, public ledger blocks are stored on the different pages of this ledger, and anyone can view that transaction from their nodes. Each block contains a hash value, and as we know, the hash value is the combination of a set of characters and numbers. The hash value of each block or bitcoin transaction is the value of the previous network block.
When the bitcoin came into existence, the first block or transaction on the blockchain was called the Genesis block. It was the first block, which made after the launch of the bitcoin platform, and from that time, the cycle of the bitcoin blockchain is rapidly increasing in size with the fast and increasing transactions.
Blockchain as Open ledger
Bitcoin is a globally accepted currency since it is a widely accepted currency accessible to everyone. Open ledger means you can see all the transactions made and are happening on the bitcoin network, whether it is a previous or current transaction. The size of the bitcoin blockchain is increasing rapidly because many and many people are connecting with this network since it is a very convenient method or way of payment. By expanding, the transactions on the bitcoin network, the size of the blockchain is also increasing because it requires more memory to store every transaction.
Blockchain is also like bookkeeping, and in physical bookkeeping, we try to store all the day transactions. The bitcoin blockchain is a digital bookkeeping tool that shows the financial ecosystem of bitcoin.
There are many traditional institutions or centralized systems like banks and other institutions that do not disclose all the transactions’ statistics. Still, it is not in the case of bitcoin. Bitcoin is transparent, and as the bitcoin blockchain is a public ledger, it shows or discloses statistics or transactions of spending and buying bitcoins on the bitcoin platform.
From the above information, we have learned about the blockchain and how it works. In brief, blockchain contains two words, “block” and “chain,” where block means a single transaction made on the bitcoin network and chain means several transactions or blocks connected, i.e., the hash value of the previous block. Blockchain is the open ledger or public ledger that disclose all the transactions, whether last or current and you will get complete detail of sender and buyer.