Cryptocurrency: Blockchain 1.0
With the advent of Blockchain, cryptocurrency was the first use case that got the most attention. Bitcoin was the first implemented use case of Blockchain. From 2008-13 Number of applications were primarily designed for moving currency from one account to another.
There are several cryptocurrencies. Some of them being
Bitcoin(BTC)
Litecoin
Bitcoin cash
Dash
Ripple
Ethereum
Bitcoin
Bitcoin came at a time straight after Global Recession of 2008 when people lost faith bank controlled centralized money. It brought several issues at the forefront
Bitcoin is an Electronic peer to peer system. Satoshi Nakamoto formed the
first block in the Bitcoin chain named Genesis Block from other blocks were mined and interconnected one after other, resulting in the largest chain of blocks carrying thousands of transactions.
Even since Bitcoin hit the airwaves, many blockchain applications have cropped up seeking to leverage blockchain capabilities
Unlike Fiat Currency, Bitcoin is a chain of digital signatures. So, once a transaction takes place, only the recipient changes, but there is no tangential change in ownership that takes place.
Once a user initiates a transaction, it will be kept in a pool of transactions and checked for double-spending, once it is confirmed that it is not part of double-spending. A transaction is initiated along with other transaction for block creation (A block contain multiple transactions). Once a set of transactions are bundled together, miners start to solve a mathematical puzzle to create a block and add transactions to that.
The miner who solves the puzzle first broadcast the same to other miners who evaluates the block (which basically is Proof of work).
This process is called reaching to Consensus by miners. Simply, Consensus is the process of reaching a common state after the addition of a new block to the existing chain
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