Bitcoin and blockchain technology are like twin brothers, closely connected but developing independently. Behind the relationship between the two is a revolutionary change in the field of digital currency. As the first successful application of blockchain technology, Bitcoin has opened the door to the era of cryptocurrency. Let us explore the mystery of this technological change in depth.

The emergence of Bitcoin marks the first widespread application of blockchain technology. Blockchain is a decentralized database technology that achieves secure transmission and storage of information by linking data together in the form of blocks. As an outstanding representative of blockchain technology, Bitcoin uses blockchain technology to realize a decentralized digital currency system, breaking the barriers of the traditional financial system and making value transmission more efficient and transparent.

In the world of Bitcoin, blockchain technology plays a vital role. Every Bitcoin transaction is recorded on a growing blockchain, a process called "mining". Miners verify transactions by solving mathematical problems, and then package them into a block and add them to the blockchain. This proof-of-work mechanism ensures the security and stability of the Bitcoin network and ensures the traceability and immutability of transactions.

The decentralized nature of blockchain technology means that Bitcoin transactions are not controlled by a single institution or government, and anyone can participate in it, ensuring the openness and transparency of transactions. This decentralized feature also provides the basis for the anonymity of Bitcoin. Users can conduct transactions without revealing their personal identities, ensuring privacy and security.

In addition to Bitcoin, blockchain technology has many other application areas. For example, in supply chain management, blockchain can achieve product traceability and quality tracking; in the financial field, blockchain can simplify cross-border payment and clearing processes; in the field of copyright protection, blockchain can ensure the uniqueness and copyright ownership of digital content. It can be said that the potential of blockchain technology is far more than Bitcoin, and it will bring revolutionary changes to all walks of life.

With the continuous development of blockchain technology, people's understanding of digital currency and blockchain is also deepening. As an outstanding representative of blockchain technology, Bitcoin has shown us a new way of value transmission and led the future development direction of digital currency. In this digital age, the application of blockchain technology will become more and more extensive, and its revolutionary impact will gradually emerge.

Bitcoin is undoubtedly one of the hottest topics in recent years. Is it an inevitable trend of future currency development, or another "tulip bulb" that is hyped up?

First of all, Bitcoin is not any tangible currency. Its production and operation are based on the Internet. It is an open source P2P (Peer to Peer) digital "currency". Unlike the gold and silver currencies chosen by humans for their natural properties in the early days, and unlike the fiat money (Fiat Money) that people have been accustomed to for nearly 100 years - paper money supported by national laws and sovereign credit, Bitcoin was completely born in the modern technology Internet era.

Bitcoin is the first successful application of blockchain technology. The transaction records of the traditional financial system are all stored in the database of the bank center, while the blockchain is the Bitcoin ledger. The ownership and transaction records of Bitcoin generated at any time are recorded in the blockchain ledger. Anyone who downloads the client can receive relevant information.

The address and private key of Bitcoin are similar to personal accounts and payment passwords. Bitcoin owned by an individual is locked in a personal address, and only by using a private key can it be unlocked and sent to another address to realize transactions. During the transaction, a bill will be sent to the entire network, and other users will verify it. Once it is verified, the transaction is successful. The first user to verify whether the transaction is valid will be rewarded with a bitcoin. The rewarded bitcoin is divided into two parts: one part is the transaction fee, which is paid by the transferor and is the bitcoin already in the system; the other part is the newly generated bitcoin reward by the system. The greater the computing power of the computer, the more likely it is to get a bitcoin reward. The so-called "miner" is a person who specializes in verifying transaction information and updating records.

In general, Bitcoin has the following characteristics:

The total amount is limited, and the issuance will not get out of control. The only source of Bitcoin issuance is the basic reward of the system after successful accounting. The basic reward is 50 bitcoins at the beginning, and the reward will be halved after every 210,000 blocks are created. So far, the halving has occurred twice, and only 12.5 bitcoins will be obtained for successful accounting. It is estimated that by around 2140, the total amount of Bitcoin will reach the upper limit of 21 million.

Good anonymity, the identity of the account owner will not be known to anyone. People can transfer money through Bitcoin at will, without the need to verify various identity information like bank transfers, and without having to bind to any bank card. However, this feature also makes Bitcoin widely used in illegal transactions such as money laundering. Currently, the main use of Bitcoin payment is black market transactions and "dark web" transactions.

The production and maintenance of Bitcoin consumes a lot of energy. "Mining" requires that each new Bitcoin produced must be encrypted by a high-performance computer to solve complex mathematical problems. Since the amount of currency obtained from mining is proportional to the computing power of the machine, from a probability point of view, the higher the performance of the hardware, the higher the proportion of computing power among all miners, and the easier it is to obtain Bitcoin. In order to obtain higher returns, "miners" compete with each other in computing power. The total computing power of the world's top 10 mining pools accounts for 75% of Bitcoin's computing power. The high concentration of computing power and the maintenance of distributed and decentralized accounts require a lot of energy.

The price of Bitcoin is prone to large fluctuations. Bitcoin is just a bunch of data. If it is not linked to real legal currency and physical objects, it is difficult to ensure the stability of its price. The promise of national sovereign credit prevents legal tender from depreciating significantly in a short period of time, so people are willing to use legal tender instead of returning to gold and silver currencies. Unlike legal tender, in the absence of legal constraints, physical owners can arbitrarily link or delink with Bitcoin, which makes Bitcoin very susceptible to irrational emotions and large price fluctuations.

In general, the relationship between Bitcoin and blockchain technology is like a groundbreaking creation story. One is a pioneer and the other is a carrier. The two jointly build a decentralized, secure and transparent digital world. With the continuous advancement of science and technology and the continuous expansion of application scenarios, the relationship between Bitcoin and blockchain will become closer, jointly leading the development direction of the future digital economy. Let us wait and see the infinite possibilities brought by this digital revolution!

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.