Unit 2
Blockchain Platforms and Smart Contracts
,Bitcoin
Bitcoin is the first and most well-known blockchain
platform, introduced in 2008 by Satoshi Nakamoto.
It was created to enable peer-to-peer digital money
transfers without the need for banks or intermediaries.
Bitcoin operates on a public, decentralized blockchain,
where every transaction is verified by network participants
called miners using the Proof of Work (PoW) consensus
mechanism.
Once a transaction is confirmed, it is permanently recorded
on the blockchain, making Bitcoin highly secure,
transparent, and tamper-resistant.
However, Bitcoin is intentionally limited in functionality and
mainly focuses on digital currency rather than complex
applications.
,Bitcoin - Keypoints
1. Purpose (Digital currency)
Bitcoin is designed to function as a decentralized digital currency that allows users
to store value and make peer-to-peer payments without banks or intermediaries.
2. Blockchain Type (Public – Permissionless)
Bitcoin runs on a public blockchain where anyone can join the network, view
transactions, and participate without requiring permission from any authority.
3. Consensus Mechanism (Proof of Work – PoW)
Bitcoin uses Proof of Work, where miners solve complex cryptographic puzzles to
validate transactions and secure the network.
Blockchain Platforms and Smart Contracts
,Bitcoin
Bitcoin is the first and most well-known blockchain
platform, introduced in 2008 by Satoshi Nakamoto.
It was created to enable peer-to-peer digital money
transfers without the need for banks or intermediaries.
Bitcoin operates on a public, decentralized blockchain,
where every transaction is verified by network participants
called miners using the Proof of Work (PoW) consensus
mechanism.
Once a transaction is confirmed, it is permanently recorded
on the blockchain, making Bitcoin highly secure,
transparent, and tamper-resistant.
However, Bitcoin is intentionally limited in functionality and
mainly focuses on digital currency rather than complex
applications.
,Bitcoin - Keypoints
1. Purpose (Digital currency)
Bitcoin is designed to function as a decentralized digital currency that allows users
to store value and make peer-to-peer payments without banks or intermediaries.
2. Blockchain Type (Public – Permissionless)
Bitcoin runs on a public blockchain where anyone can join the network, view
transactions, and participate without requiring permission from any authority.
3. Consensus Mechanism (Proof of Work – PoW)
Bitcoin uses Proof of Work, where miners solve complex cryptographic puzzles to
validate transactions and secure the network.
