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Author: Admin | 2025-04-28
Network is to compare some of the points of Bitcoin with a more familiar setting, such as a bank. Bitcoin adheres to very strict rules through its coding. For the purpose of this comparison, we are applying the same rules to the banking system to allow for a fair comparison.Bitcoin System (BlockChain & Bitcoin Network)Bank SystemThere is only one Bitcoin BlockChain.There is only one bank in the world.The Bitcoin system knows exactly how many Bitcoins exist in the world.Bank knows exactly how much money exists in the world.Knows where all Bitcoin came from and when it was created.Knows where all money came from and when it was created.Knows every transaction ever made between accounts.Knows every transaction ever made between accounts.The ledger showing all transactions ever made is publicly viewable.The ledger showing all transactions ever made is publicly viewableKnows exactly how much Bitcoin is in each account.Knows exactly how much money is in each account.The above points are factually true for Bitcoin, they are hard-coded, cannot change, and cannot be interpreted in any other way than they are written. These points are obviously not true for our current banking systems but for the purpose of this comparison, we are applying these rules to the banking system.As well as the above points, the BlockChain and Bitcoin Network must process the transaction list in full every time transactions are made and more than 50% of the network must agree that the transactions are the same.Each miner in the network has their own copy of the ledger which shows every transaction ever made from the very first Block to the present day.Every transaction in the ledger from the very start to the present day is checked and confirmed by the miners each time a new block is processed.In order to insert a ‘counterfeit’ transaction into the BlockChain or Bitcoin Network the counterfeit transaction would have to be put into over half of the miners-ledgers throughout the world at precisely the exact same time and because of the sheer size of the Bitcoin Network no one has that much computer processing power and it would
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