Bitcoins are just the same plural of Bitcoin
If you break the data inside many computers into small pieces, you would come up with 1s and zero’s. These are also called hex digits. You probably already know about hex digits.
They aren’t just virtual coins stored in computer systems. They’re coins kept in computer systems, but they aren’t even physical and just exist in the virtual world! That’s right; there is a third thing that makes your bitcoin work. The third thing is called blockchain.
The block chain is a record of all the different changes in all the different bitcoins. The more accurate it is, the better. It will allow every single transaction to be checked and to ensure that it actually was done, which is how this is supposed to be secure.
But how does this help the decentralization of the bitcoin?
Well, imagine if there was a way to get around the blocks and to avoid having to wait for so long for all these transactions to go through. Imagine if you could use your social impact in all transactions that you make. You could make sure that only certain people got to have an opportunity to have access to some of these bitcoins. Those people could then be looked at as being less well off and might not be able to afford all these different transactions and have their IP addresses traced. This is what would be called a social impact.
And this is what the developers of the bitcoin want to see. They want to make sure that the system is not only fair in practice, but also fair in theory. They want to make sure that those with less money and therefore less influence have an equal opportunity to have influence by being able to use IP addresses to make their transactions. They want to make sure that the decentralization of the system is maintained – and this is exactly what they are doing by putting in such mechanisms that allow miners to band together and still have a reasonable chance of getting their transaction through even if they are in very small groups now.
But what is even more interesting to note is that the whole idea of this system is one that was originally proposed way back during the height of the internet bubble. It is called the distributed ledger – and this is where the bitcoin comes into play. The distributed ledger is like a telephone directory which can be accessed by anybody who wants to look up information about any specific transaction that has happened on the bitcoin exchanges. The bitcoin works exactly like this now – but it is perhaps more interesting now than ever before because of the social impact it is creating among ordinary citizens all over the world.