Private keys and Public keys are the foundation of every blockchain network. In purely cryptographic terminology, every security system requires a public key for location and a private key for private access. Applied to cryptocurrency wallets, the public key is your address, since it gives other users a point of access to send tokens to your wallet. In simple terms, you can think of the pair just like an email account or a bank login; the address is like your username or email address, and the private key is like your password.
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Bitcoin is the world’s first peer-to-peer digital currency, or cryptocurrency. Released in 2009 by the anonymous Satoshi Nakamoto, Bitcoin is the most significant application of blockchain technology. In its documentation, Satoshi Nakamoto laid out its implementation: a secure, global, immutable public ledger as a record of every transaction on the network (the blockchain) and an incentive for consumers to contribute their computing power to the blockchain network (Bitcoin).
To understand how does Bitcoin work, we first must understand what is a network. A network is fundamentally a system with multiple nodes (users) and connections (transactions) between these nodes. As a network, the Bitcoin Network’s purpose is to enable users to send tokens to one another (Bitcoins).
Proof of work refers to the computational puzzle that miners have to solve which allows many open blockchain networks to remain secure and decentralized. Proof of Work uses cryptographic functions that essentially guarantee a certain number of computer cycles were spent to solve the puzzle. In other words, by solving this puzzle, you are proving that you did some amount of work – hence the term Proof of Work.
Ethereum is an open platform that enables developers to build and deploy decentralized applications such as smart contracts and other complex legal and financial applications. You can think of Ethereum as a programmable Bitcoin where developers can use the underlying blockchain to create markets, shared ledgers, digital organizations, and other endless possibilities that need immutable data and agreements, all without the need for a middleman.
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A smart contract is an application that runs on a blockchain network. Deployed on public blockchain networks, smart contracts are self-executing and immutable after their signing. The uses of such contracts are limitless, as they can be used to build decentralized exchanges, tokenized assets, games and more. Since the first smart contract platform, Ethereum, was released in 2015, smart contracts have become the primary focus of innovators in the bl
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