What technologies are used at the bottom of Bitcoin? This question has been bothering many people. As a virtual currency, the technical principles behind Bitcoin are extremely complex. We will delve into the core technology of Bitcoin and uncover the mysteries of blockchain, encryption algorithms and decentralization.

 Blockchain Technology: The Cornerstone of Bitcoin

As the basic technology of Bitcoin, blockchain carries the operation and security of the entire network. It is a decentralized, tamper-proof distributed ledger technology. Each block contains a certain number of transaction records, and these blocks are linked together through encryption technology to form an irreversible chain. This decentralized design makes the Bitcoin network not dependent on a single institution or individual, ensuring the security and transparency of transactions.

On the blockchain, each transaction needs to be verified multiple times before it can be confirmed, which ensures the authenticity and security of the transaction. Moreover, the data structure of the blockchain allows anyone to view transaction records, which increases the transparency and trust of the entire system. It is precisely because of the application of blockchain technology that Bitcoin can achieve decentralized currency transactions and break the barriers of the traditional financial system.

 Encryption algorithm: ensuring the security of Bitcoin

Bitcoin's security is built on strong cryptographic algorithms. The Bitcoin network uses the SHA-256 algorithm, which is a widely recognized encryption algorithm that can effectively protect the integrity and privacy of transaction data. Through encryption algorithms, Bitcoin transaction information is encrypted, ensuring the security of users' identities and assets.

Cryptozoological algorithms also play an important role in the mining process of Bitcoin. Mining is a key link in the maintenance and security of the Bitcoin network, and the complexity of the encryption algorithm ensures the fairness and difficulty of mining. Only by decrypting specific mathematical problems can miners receive Bitcoin rewards, which ensures the scarcity and value of Bitcoin.

 Decentralization: The charm of Bitcoin

Decentralization is one of the core concepts of Bitcoin. The traditional monetary system relies on central bank issuance and supervision, while Bitcoin realizes the issuance and management of currency in a decentralized manner. Every node in the Bitcoin network has an equal status and there is no centralized management organization, which means there is no single point of failure and the system is more secure and stable.

Decentralization also brings greater freedom and privacy protection to Bitcoin. Users have complete control over their assets without interference from any institution. Moreover, Bitcoin transactions are anonymous, and only the two parties to the transaction know each other's identities, which provides users with higher privacy protection.

In general, the key to Bitcoin becoming a global digital currency lies in its underlying blockchain technology, powerful encryption algorithms and decentralized design. The combination of these technologies makes Bitcoin safe, transparent and decentralized, attracting more and more people to join it. The success of Bitcoin has not only changed people's understanding of currency, but also promoted innovation and development in the entire financial technology field. Let us look forward to the future development of Bitcoin and explore more possibilities in the digital currency world!

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.

Bitcoin is a decentralized digital currency that has been supported and accepted by global investors. Its emergence has not only changed the issuance and circulation of traditional currencies, but also brought about a new ecosystem that distributes The security, anonymity and traceability of digital currencies are achieved through technical means such as digital ledgers, decentralized mechanisms and secure encryption algorithms. Bitcoin’s ledgers are implemented through blockchain technology, and each block contains multiple For transaction records, each block has a unique block header, which is used to record the metadata information of the block and also supports the development of Bitcoin. So what technology is used at the bottom of Bitcoin? Below, the editor of Coin Circle will introduce it to you in detail.

 What technology is used at the bottom of Bitcoin?

The underlying layer of Bitcoin uses blockchain technology, which uses the Proof of Work (PoW) consensus algorithm to ensure the security and authenticity of transactions. Bitcoin data is stored in a distributed ledger, and each node has a complete copy of the ledger. No one can independently control the data in the ledger.

In layman's terms, the blockchain is a ledger, and each block is each page of the ledger, and each node on the block is the person who keeps the ledger. Through the block, you can not only see the latest accounting of each transaction (node), but also check any historical record. Similarly, people can also trace the records of the previous block from the latest block record until the "genesis block", thereby generating a complete transaction chain, that is, a blockchain.

Therefore, from the birth of Bitcoin, the entire network has formed a unique main blockchain, which records all transaction records since the birth of Bitcoin, and expands infinitely at the rate of adding one node every 10 minutes. . After each node is added to this main blockchain, it will be broadcast to the entire network, so that every computer participating in Bitcoin transactions has a copy.

In the real world, every non-cash transaction is recorded by the banking system, and if the bank's computer network crashes, all data will be lost. In the Internet world, all Bitcoin transaction records are stored in countless computers around the world. As long as there is a computer with a Bitcoin program in the world that is still working, this main blockchain can be read completely. Such highly redundant transaction information storage makes the possibility of complete loss of the Bitcoin main blockchain extremely slim.

Everyone can generate new blocks based on these transaction data after verifying the validity of the transaction. In order to avoid false transactions or repeated transactions and make this new block trusted, a proof-of-work mechanism needs to be built. If you want to modify the transaction information in a certain block, you must complete all the work of the block and subsequent connected blocks. This mechanism greatly increases the difficulty of tampering with the information. At the same time, proof of work also solves the consensus problem of the entire network. The entire network recognizes the longest chain because the longest chain contains the largest workload.

 What is the Bitcoin consensus mechanism?

The Bitcoin consensus mechanism is POW, which is the first blockchain consensus mechanism and was first adopted by BTC. As the name suggests, the proof-of-work mechanism is distributed according to work. The more work you do, the more you get. Just like everyone performs mathematical operations together in the Bitcoin system, the first one to calculate can get the reward. We call the process of computing and obtaining rewards mining, and the nodes that mine are called miners. Representatives that use this mechanism include: BTC, BCH, LTC, etc.

The advantage of the POW mechanism is that it is highly decentralized, and everyone can participate to obtain accounting rights. At the same time, the higher the computing power of the entire network, the higher the security level, and the higher the cost of destroying the system, such as BTC has developed to the current level. If you want to break this mechanism, in theory, the tamperer needs to have 51% of the computing power of the entire network to achieve it. The cost required is very high.

The disadvantages of the POW mechanism are that it is relatively inefficient and consumes very high energy, because each transaction needs to be confirmed by multiple miners, and a large amount of electricity is consumed during the node's calculation process. This is also a criticism of the POW mechanism. defect.

The above content is a detailed introduction to the issue of what technology is used at the bottom of Bitcoin. The Bitcoin blockchain uses a hash-based chain structure. Each block has a unique hash value, which is calculated from the block header information. At the same time, the hash value of the previous block of each block is also included in the block header information of the current block, thus forming a blockchain structure that cannot be tampered with. Although Bitcoin is currently developing well, there are still many uncertainties and challenges in the future. However, it has become an important part of the development of human society, injecting new power and vitality into the digital economy and social development.