bitcoin - OG daddy

At this point, you've likely heard of the crypto currency Bitcoin.

👉 Satoshi Nakamoto (anonymous person or group) created Bitcoin in 2008 as a peer-to-peer electronic cash system.

Bitcoin Whitepaper⁠

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Here are the three things you need to know about the Blockchain technology that powers Bitcoin.

Blockchain is:

Decentralized: Transactions are stored on multiple computers around the world, not one central one.

Immutable: Once a transaction is recorded on the blockchain it cannot be changed.

Open: Anyone can see any transaction on the blockchain

When Bitcoin was created, it was determined that there would only ever be 21 million. The blockchain technology behind Bitcoin is important because everyone who uses Bitcoin can see where each Bitcoin is and make sure that it is not being manipulated or the same Bitcoin is being spent more than once at the same time.

Bitcoin is important because it was the first digital version of money. It paved the way for blockchain technology, which is the foundation of Web3.

I wish there was more for me to explain. I can talk about some of the innovations of Bitcoin like the Lightining Network but honsetly I could care less. While innovative bitcoin has become in my opinon, a deflationary and non-reinventing asset. it’s gold but it’s something that can’t be built on. not much use there.

Moire on lightning below -

Bitcoin Lightning

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This was a "layer 2" payment protocol layered on top of a cryptocurrency, such as bitcoin or litecoin. It is intended to enable fast transactions among participating nodes and has been proposed as a solution to the bitcoin scalability problem. It features a peer-to-peer payment system for making micropayments of cryptocurrency.

Normal use of the Lightning Network consists of opening a payment channel by committing a funding transaction to the relevant base blockchain (layer 1), making any number of Lightning Network transactions that update the tentative distribution of the channel's funds, optionally followed by closing the payment channel by broadcasting the final version of the settlement transaction to distribute the channel's funds.

To make payment, the channel must be closed. To start this process, one node broadcasts the most up to date settlement transaction to the network. The next events can broadly be thought of as cooperative closure in which both parties confirm a distribution and funds are immediately settled, and an uncooperative closure.

If one node is no longer part of the network or sends an incorrect distribution (likely with outdated transactions), funds are not instantly settled. Funds could be contested within a dispute period and sent to a second node if it broadcasts a more up to date distribution. This punitive act, known as the breach remedy transaction, prevents nodes from attempting to defraud the network by broadcasting out-of-date transactions.

Now it’s being adopted by the people in El Salvador.

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