The Bitcoin backbone protocol

Cryptocurrency is a type of a virtual digital currency that uses cryptography to secure its transactions and is decentralized. Bitcoin, on the other hand, was the first Cryptocurrency founded in the year 2009 by an unknown source as open-source software. The transactions are peer to peer and are verified through network nodes. A cryptocurrency exchange is businesses that give people a chance or opportunity to exchange Cryptocurrency with other goods, product or even services.

The Blockchain

The blockchain is a public transaction ledger that was to affect the decentralization of the Bitcoin system more so in preventing double-spending. The ledger is maintained by miners who are anonymous participants whose work is to approve transactions and in turn, are rewarded with bitcoins. Blockchain requires miners to solve a cryptographic puzzle in order to generate a new blockchain.

Bitcoin Protocol

The bitcoin protocol is a set of rules or regulations that govern Cryptocurrency exchange; the main problem facing the exchange is double-spending. Double spending occurs when the fraudster credits an account receives the services or the goods agreed upon and manages to organize the Blockchain so that the transaction is reverted. At this point, the fraudster keeps the bitcoins as well as receives the goods or services.

The best cryptocurrency is one that is decentralized, this means there is no central control/authority of the transactions it should also know when to produce new cryptocurrencies and when not to and lastly should be able to distinguish ownership between different players.

Bitcoin, or for that matter, cryptocurrencies were borne out of the need to reinvent the banking environment. With a faster turn around time and impregnable security, it soon became the darling of the tech community.

It is imperative for Bitcoin to maintain authenticity.

Also, the BA (Byzantine Agreement) is built on the terms of the bitcoin backbone protocol and is based o the POW assumption. Every Blockchain has its participants and each participant is required to give input into the Blockchain and a Blockchain becomes authentic only if it contains {0, 1}. When the blockchain reaches sufficient lengths the honest parties read the k elements at the end by pruning and retaining the remaining as part of the blockchain. This ensures the majority of the blockchain originate from the honest parties.

The essence of a crypto transaction is the ease of usage. It is this that has catapulted Bitcoin into the behemoth that it is.