The Cryptography Behind Bitcoin

Abstract

With the growing popularity of cryptocurrencies around the world, Bitcoin's popularity and value continues to stand out among the rest. With its release dating back to 2009, the identity of Bitcoin's creator is still unclear to this day. Since then, cryptocurrencies have become even more accessible which in turn, has led to the acceptance of Bitcoin as a form of payment for several markets. It is estimated that there are about 100 million Bitcoin "users" around the world. This research will serve as a guide to explore the intricacies behind Bitcoin's uprising and its building blocks. Understanding the overall idea behind cryptocurrencies is crucial in learning how Bitcoin functions. Once we identify the technology behind Bitcoin, we will examine some of the important algorithms that play a crucial part in Bitcoin's security. We will also acknowledge how this cryptocurrency makes and tracks transactions at every step of the way. With the sudden surge in popularity, it is necessary to also address the vulnerabilities. This research will also consist of some theoretical cases that will help clearly outline why attacks/hijacks of Bitcoin possessions are rare and possible but are very expensive to pull off. This research will help bring a clear view and judgement to the overall reliability of Bitcoin and other cryptocurrencies.