Bitcoin completed this Saturday (11) its block number 700 thousand, indicating that a lot of history has already been told on the network.
That is to say, Bitcoin blocks are the places where transactions are stored. When someone sends Bitcoin to someone else, that transaction expects to be included in a valid block on the network.
To check the validity of a block, there is a consensus mechanism created by Satoshi Nakamoto. This tool confirms the receipt of bitcoins by an address and guarantees that the coin received was not sent to another person at the same time.
Thus, when a Bitcoin transfer is carried out and confirmed by the network, it is definitive. However, after the block that validated any transaction is created, the network waits about 10 minutes for the creation of a new block, which will store new transactions.
Take as an example block 0 of the Bitcoin network, which was created on January 3, 2009 and can also be called Genesis, ie, the first transaction on the network. This block contained only one transaction, which was the creation of 50 BTCs sent to the miner’s portfolio, which in this case was Satoshi Nakamoto.
After the creation of Block 0 and its transaction, it was placed on a network that has already seen the creation of more than 700 thousand blocks, completed by Bitcoin this Saturday. In other words, Genesis is “buried” by thousands of blocks created after it, all chained together.
The more blocks on the Bitcoin network, the more secure and immutable it becomes
To modify any information from Block 0, it is necessary to change the information of all more than 700 thousand blocks created after it, showing that Bitcoin’s history is one of the most difficult to be changed, due to the extreme computational expense necessary to attack its foundation. and consensus.
According to Bitcoin.org, the more blocks created, the more secure the network.
“Receiving payment notification is almost instantaneous with Bitcoin. However, there is a delay before the network starts to commit your transaction by adding it to a block. A confirmation means that there is a consensus on the network that the bitcoins you received were not sent to anyone else and are considered your property. Once your transaction has been included in a block, it will continue to be buried under all subsequent blocks, which will exponentially consolidate that consensus and lower the risk of a transaction rolled back. Each confirmation takes between a few seconds and 90 minutes, with 10 minutes being the average. If the transaction pays a very low fee or is atypical, getting the first confirmation can take much longer. Each user is free to determine at what point they consider a transaction to be sufficiently confirmed, but 6 confirmations are often considered as secure as waiting 6 months on a credit card transaction.”
One of the bitcoiners who celebrated the milestone was Pieter Wuille, who has followed digital currency since 2010, when the first 100,000 blocks were created.
Happy 700000th block, #bitcoin! https://t.co/24mpVKXK8e
— Pieter Wuille (@pwuille) September 11, 2021
After reaching 700,000 blocks, Bitcoin community recalled that this means that fewer coins remain to be created
Another profile that celebrated the milestone of Bitcoin was Documenting Bitcoin, which recalled a speech by Hal Finney, who reminded that the more blocks, the more there are justifications for the price of Bitcoin to appreciate.
“Every day that passes and Bitcoin does not collapse due to legal or technical problems, which bring new information to the market. This increases Bitcoin’s chances of eventual success and justifies a higher price.”
The 700,000th #Bitcoin block.
“Every day that goes by and # Bitcoin hasn’t collapsed due to legal or technical problems, which brings new information to the market. It increases the chance of # Bitcoin‘s eventual success and justifies a higher price.”
— Hal Finney pic.twitter.com/RYzHHBodTe
— Documenting Bitcoin 📄 (@DocumentingBTC) September 11, 2021
Remember that in addition to recording transactions, the blocks also create new currencies, at a rate of 6.25 BTCs per block today. With that, after the network reached 700 thousand blocks, the community noted that 89.58% of all currencies have been created.
In this way, the more blocks created, the less bitcoins are left to be issued, making them increasingly scarce.
It is worth remembering that Bitcoin completed 600 thousand blocks in October 2019, that is, it took almost two years for the network to find another 100 thousand blocks, completed today.