Bitcoin is all over the internet and media of late.
What is the deal? Let’s break it down. First, we will cover some background information.
When you hear about Bitcoin, you likely also hear about blockchain technology at the same time. The reason is they were both invented together, and Bitcoin cannot exist without blockchain technology.
Blockchain essentially allows someone to handle a transaction over the internet with confidence in the other party, even though the other party is a stranger. Prior to blockchain, an intermediary would be necessary to confidently conduct a transaction with a stranger. The most commonly used example involves a real estate transaction. Let’s say you decide to sell your house. Most likely, a stranger is going to buy it. How does that person know you own your home? Do they just take your word for it? Of course not. Now, you and I know you are a super trustworthy person, but the stranger does not have any idea what kind of person you are. Instead, he relies on the local government, which provides a centralized ledger or database for deeds and titles. This enables the buyer and his lender (if there is one) to purchase the home with confidence. The buyer wants to see the most recent deed on file in the local government’s database because he cannot trust the deed that you provide. You could have just made