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That is whereSatoshi Nakamotogathered all the best elements of scientific innovations of his times. He merged public-key cryptography, Digital Signature Algorithm, Hashcash, game theory and theories of distributed consensus all into one and created a unique combination that heralded the age of decentralized money. In this network, every user has two keys like all email users have a username and password. Username is replaced with the public key that is public and can be shared with anybody interested in transaction. The password is replaced with private
key that is known only to the user. Anybody who uses a bitcoin wallet has these two keys. Let us understand some critical elements of Bitcoin system through simple terms mentioned here:
Hash is a mathematical function that changes any input into a fixed
output. If I write the word “Truth,” it has a hash value of 2A51E262D3148A04A4F58661818704BE but if I change it to all-caps“TRUTH,” it shall have a hash value of DB83476ED0D71D55139738CC1F9D4500 and if I change it to all
small letters as “truth,” the new hash value would be
59D42C504C10B1F71478F52BF06C86DA. This means that any word or file can generate a unique hash value and even the slightest change would change hash value so drastically that we can check easily that some data has been changed somewhere.