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Sep 2, 2013 In Part 1 we took a look at the incentives involved in Bitcoin mining and how they are used guarantee a single transaction history needed to prevent bitcoins from being double A change to the hash of block 101 will cause the header of block 102 to change and so on all the way through the block chain.

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Bitcoin is a cryptocurrency and worldwide payment system. :3 It is the first decentralized digital currency, as the system works without a central bank or single administrator. :1 The network is peer-to-peer and transactions take place between users directly, without an intermediary. :4 These transactions are verified by network