Bitcoin is the first world-famous implementation of the blockchain technology, which was designed in 2008 by Satoshi Nakamoto.
(Please note that the Japanese-like name is just a nickname of a person or a group. We have no idea yet.)
The first real-world Bitcoin transaction was made in May 2010, when a US programmer bought a pizza with 10,000 Bitcoins (BTC). In this transaction, the value of a Bitcoin was less than 0.01 US dollars.
But in December 2017, a Bitcoin was priced at a jaw-dropping 17,900 US dollars.
这位网名Laszlo Hanyecz，人称“ the pizza guy”的程序员，在2014年2月说出了自己的感受：
Laszlo Hanyecz, the pizza programmer, said, "Nobody owes me anything...I generated my share and I spent it, it was just at a time when the value was lower, but so was the generation difficulty, and the block reward was 50."
Blockchain is information storage that you can trust.
Unlike a disk or a USB drive, blockchain stores information that cannot be tampered with.
Let's pack this simple conversation into a simple blockchain. We are going to pack each sentence into a "block" and then link them into a "chain". First let's transform the three lines using a technique called “hashing.” In this example we use an algorithm called SHA1 to do the job.
This blockchain will be stored in the computers of all Taobao users. If someone changed any bit of the conversation, the hash text will not be able to match with anyone else's. So the tampered conversation will not be trusted by anyone. This is basically how blockchain technology works to ensure the authenticity of the information.
The Bitcoin works roughly the same, except the information stored is not a conversation, but a ledger of Bitcoin transactions.
If you want more Bitcoin, you can use your computer to hash all the blocks in the chain again. The more hashing you do, the more you contribute to the Bitcoin’s integrity.
You get a reward for this contribution, which used to be 50 Bitcoins as mentioned by the pizza guy. That's what mining is all about.
We at CGTN have reported that blockchain may be used to establish a better financial system, fight climate change or even stop poverty.
Simply search "blockchain" in our mobile app to find out more about our coverage on the topic.
Story by Gong Zhe