The Bitcoin before the Blockchain

Smartphone with Bitcoin chart on-screen among piles of Bitcoins. Bitcoin trading concept. 3D rendering

Bitcoin is a decentralized application allowing the transfer of its own cryptomy (bitcoin or BTC) between users. Today, Bitcoin represents 906 million euros of total trade volume between individuals. Bitcoin’s success is due to the virtual absence of transaction costs and the inviolability of its bitcoin portfolio. Why talk about Bitcoin before the blockchain? Because the term “blockchain” was coined to describe the computer principle that allows Bitcoin to exist. Bitcoin is therefore the first use case of blockchain.

Bitcoin draws all its strong points from the Blockchain. It is presented as a shared registry on all users’ machines, on which there are blocks linked together containing transactions.

Each computer here represents a user node. There is no central server, the Blockchain is intended to be independent of any authority. Each Bitcoin user has a copy of the entire registry on his or her computer, i.e. a list of all transactions carried out since the creation of Bitcoin. In the physical world, the transfer of money between two parties results in the loss of the sum on the side of the transmitter and its gain for the receiver. On the other hand, in the digital world, when data is transferred, it does not necessarily lead to the loss of data for the sending party. The data is generally duplicated and remains with all parties involved in the transfer. So a digital currency would be duplicated at each exchange? How can such a currency have value if even the slightest expenditure leads to inflation? The answer lies in the functioning of the Blockchain, and the example of the Bitcoin allows us to explain it.

Salma BENCHEGROUNE


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