Overview of blockchain and bitcoin (Part 4)

Threats Bitcoin protocol is not stable yet, its version is now just 0.15.1. The first stable version usually starts at 1. Bitcoin developers say that *“Bitcoin is an experimental digital currency…”* Bitcoin price is going up nowadays, people are putting their money into it. They should know that in case of security leak, or technological failure, their assets […]

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Overview of blockchain and bitcoin (Part 3)

Limitations 1. Time Bitcoin blocks size are limited to 1MB. This rule limits number of transactions can be stored in each block. Blocks are added to blockchain every 10 minutes. So this allows only 7 transactions added to bitcoin blockchain every second. But that’s not the only story about speed. Some transactions, like transfer bitcoin […]

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Overview of blockchain and bitcoin (Part 2)

Block Block is where transactions are grouped, sealed and stored. Transactions grouped together by a mechanism called Merkle tree. Computer will hash all transactions in a block, to find Merkle root. Merkle root hash is stored in block header. If a transaction cannot find another one to form a pair, it is hashed with itself. […]

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