- dApp(Decentralized Application)
- 51% Attack
- Smart Contract
- Soft Fork
- Hard Fork
- Token Economy
- Consensus Algorithm
- Digital Signature
- Public key
- Private key
- Block Height
- Merkle Root
- Time stamp
- UTXO (Unspent Transaction Output)
- ERC20 Token
Bitcoin is the first cryptocurrency invented by an unknown person or group using the name Satoshi Nakamoto in 2009. As a protocol based in the blockchain, which the users store and verify the transactions, it uses peer to peer (P2P) method without a trusted third party institution when making transactions.
In 2007, the global financial crisis hit the world and big financial companies failed to collect their loans and went bankrupt. In fact, as Lehman Brothers Holdings Inc., one of the four major banks in the US, went bankrupt, and the problem of centralized economic structure which was concentrated in big companies had been revealed. As a result, many people lost their homes and jobs, and the Bitcoin came out aiming at decentralization and attracted many people's attention when FinTech(Financial Technologies), which is a combination of finance and technology, had risen.
Unlike the traditional currencies, Bitcoin has a limited total number of 21 million bitcoins, which are being issued by mining. The release of bitcoin drops by half every four years to prevent hyperinflation. Here, mining is a use of computer processing power when creating blocks, which contain verified transactions, and the miner, who creates a block earliest, gets the coin. This process is called PoW(Proof of Work). The complete blocks are spread to each node and the block created by the next miner is being linked to the previous block.
It is programmed to create 2016 blocks in two weeks in Bitcoin. One block is created every 10 minutes which is designed to prevent the block from branching out at most. Bitcoin confirms approximately six to seven transactions per second.
The value of Bitcoin had gradually risen since 2013, and had a sharp price rise of over 1,000dollars. Many companies got their business funds using Bitcoin, and people converted their assets into Bitcoin taking advantage of its anonymity of remittance and unregulated system, so the value of Bitcoin increased consequently. Since then numerous cryptocurrencies such as Ethereum, Ripple, EOS etc. were invented with reference to Bitcoin source.