#bitcoin the first and most famous cryptocurrency, operates on the basis of a revolutionary protocol that combines cryptography, decentralization, and economic incentives. At its heart lies the algorithm #Proof-of-Work (Pow), which ensures consensus in the network.
▫️#POW Bitcoin uses the SHA-256d hashing function, which transforms any data into a unique string of financial length. Miners, participants in the network, compete to solve complex mathematical problems to find a hash that meets certain criteria. The first to find the correct hash adds a new block of transactions to the blockchain and receives a reward in the form of new bitcoins.
▫️To enhance scalability and efficiency, $BTC second-layer solutions such as (#SegWit) have been implemented. SegWit is a soft fork, a protocol update that does not require all network nodes to update simultaneously. It separates witness data (transaction signatures) from the main transaction data, allowing for an increase in block size and a reduction in fees.
▫️SHA-256d is a double application of the SHA-256 algorithm, which increases its resistance to attacks.
▫️ The difficulty of PoW is automatically adjusted to maintain a stable block creation time of approximately 10 minutes.
▫️#SegWit not only increased the network's throughput but also opened the way for other innovations such as the Lightning Network, a second-layer solution for instant and cheap payments.
