Bitcoins
Sayli Uttarwar , TE IT
If you are an ardent fan of Game of Thrones , as I am , you would know that in July , a hacker group allegedly known as Mr . Smith created quite a havoc for HBO by releasing private HBO data online , including the scripts of the upcoming GOT episodes . The hackers sent HBO on a hunt for a hefty load of bitcoin by demanding $ 250,000 worth of bitcoins as a ransom in order to stop releasing private HBO data . We all have heard about bitcoins , but what are they in real sense ? And why is everyone so crazy about them ? Let ’ s see .
1 . Cryptocurrency Bitcoin is a system based on ownership and no one can censor it , no one can seize it , no one can freeze it . It ’ s a digital currency which means it only exists electronically . It isn ’ t attached to a state or government , so it doesn ’ t have a central issuing authority . There ’ s no one making decisions on how to regulate the flow of bitcoins or investigate any fraud . Bitcoin exists because of a network of people called the cryptographers . In fact bitcoin is termed as world ’ s first cryptocurrency .
2 . Blockchain Bitcoin is a fully digital currency and you can exchange bitcoins between computers in a worldwide network from one computer to another directly . It ’ s the same as you use peer-to-peer network to download your favorite movies , music , etc . But then what ’ s stopping anyone from making a bunch of counterfeit copies of bitcoins and becoming fabulously wealthy ? But unlike an mp3 or a video file , bitcoin isn ’ t a string of data that can be duplicated . A bitcoin is actually an entry on a huge , global ledger called the blockchain . A blockchain records every bitcoin transaction that has ever happened . So sending bitcoins means that a new transaction is recorded onto the blockchain . This blockchain is not centralized , i . e . its not kept and maintained by a single person / organization . In fact anybody can volunteer to keep the blockchain up to date with all the new transactions irrespective of their physical location . And a ton of people do . It all works out because there are a lot of people keeping track of the same thing , to make sure all transactions are accurate .
3 . How it works Whenever you need to make a transfer over the bitcoin network , you announce a few things to the whole network , them being : a . Your account number b . The account number of the person you are sending bitcoins to