The backbone of bitcoin is the blockchain technology it uses to record the transactions on its network. A blockchain is essentially a publicly distributed ledger; it records each and every bitcoin transaction ever made on a block. When that block's memory is full, it is added (in sequential order) to the chain of blocks. This ledger -- freely available on any computer in the bitcoin network -- validates bitcoin transactions, stores the blockchain, and relays transactions to other network computers. These computers are called nodes.
BLOCKCHAIN TECHNOLOGY IS A PUBLICLY DISTRIBUTED LEDGER THAT RECORDS EVERY SINGLE BITCOIN TRANSACTION. IMAGE SOURCE: GETTY IMAGES.
Because the database is stored on a network of computers, rather than on a single server, hacking or stealing bitcoin data is virtually impossible for would-be cybercriminals. A hacker would have to break into the majority of nodes simultaneously, a virtually impossible task.
There is also only a predetermined number of bitcoins that can ever be created, meaning that the currency cannot be devalued in the future by a central bank issuing more.
Thanks to the claimed advantages of the cryptocurrency, the only thing that has risen faster than the number of bitcoin enthusiasts is the price of a bitcoin token. Twelve months ago the price of one bitcoin was approximately $1,040. As I write, the price is just under $8,200 -- a 680% increase in just one year
