IT's Story for Computer Beginners

Bitcoin is a digital virtual currency. We use the word “virtual” because there is nothing tangible like a bill or a coin. So, how can you give money to someone virtually? To do this, you need to use software. If you want to send Bitcoins to someone, you use software known as an e-wallet.

Bitcoin is not managed by a bank. With that in mind, can you trust Bitcoin? I would say yes, because blockchain technology is used to implement Bitcoin.

In terms of blockchain, “block” refers to transaction details such as a money transfer. A newly created block connects with the previous block, which creates a chain with other blocks. Since these blocks are shared by multiple computers, the transparency of the transaction process is guaranteed. In addition, there is no risk of personal financial information being leaked because only transaction data is shared, while data concerning senders and receivers are kept private.

Even if someone tries to change a block for malicious purposes, the attempt will easily be spotted. This is because the changes affect all the blocks it is in a chain with. As it uses cryptographic technology, blockchain allows you to use Bitcoin safely, which is why people trust Bitcoin even though it is a virtual currency.