The digital currency Bitcoin has been on the rise recently, but its rise is also the result of the growth of the blockchain technology that underpins it.
The blockchain is a network of computers, called nodes, which are set up on computers to keep track of transactions and record them in a ledger.
Each node can record transactions, which then need to be replayed to update the ledger.
A blockchain is an immutable and untraceable record of everything, making it a unique record of every transaction.
Bitcoin is one of the first projects to create an ecosystem around this technology.
“The reason that Bitcoin is such a strong contender is that it’s not tied to anything,” Andrew Wilson, founder of Blockstream, told Business Insider in an interview.
“It’s a distributed ledger that has no central authority, no trusted third parties, it’s all done on top of the internet.”
Wilson, who is also co-founder of the crypto-currency Ethereum, says Bitcoin’s success comes from its decentralized nature.
“If you think about how we’ve got the internet, we’re all tied into a single internet service provider,” he said.
“Bitcoin can scale and be decentralized in a way that doesn’t have to be centralized.”
The cryptocurrency was launched in 2009 as a means to buy and sell digital goods.
It is now used for a wide range of purposes including payments, remittances, online advertising and more.
“You can use Bitcoin to buy goods and services from anyone anywhere in the world, including businesses, banks, governments, and even terrorists,” Wilson said.
Bitcoin’s growth is partly driven by the rise of the digital currency in China, where the government has made it illegal to trade and conduct business in the country.
China is a key market for Bitcoin.
A recent report from CoinDesk estimated that bitcoin was worth $5.6bn at the end of the third quarter of 2017.
This is more than double the value of the entire market at the start of 2016.
The government has also banned cryptocurrency exchanges from operating.
However, there are still plenty of ways for businesses to use cryptocurrencies, and the potential is there for them to thrive in the digital age.
“In China, it doesn’t make much sense to do business with the government,” Wilson told Business Insiders.
“So Bitcoin has had an enormous amount of momentum there.”
“There are people who are in positions of power in the government who are trying to push back against this, which is the reason why there’s a lot of resistance to Bitcoin in China.”
Wilson says Bitcoin is not just a currency, but a decentralized digital ledger that is used by anyone.
He says the blockchain, which records everything on the network, has a lot to offer.
“This allows for the same kind of transparency that you have in a public ledger, where you can see who has done what and when,” he added.
“Because it’s immutable, you don’t have third parties or other third parties trying to manipulate it.”
The blockchain could be a future savior of the global financial system if the technology proves successful.
Bitcoin transactions, including money transfers, are not recorded in any government-issued ledger.
However the digital currencies blockchain could offer a solution for businesses and individuals who need to avoid banks and governments.
“With Bitcoin, you have this transaction that’s made over the internet.
You can get a digital currency to do the same thing,” Wilson explained.
“What’s really important is that you can use the same ledger that’s already in place.”