Blockchain is hailed as another invention that will change the world after the Internet. In 2008, Satoshi Nakamoto first proposed the concept of Bitcoin. In 2009, Satoshi Nakamoto released the first Bitcoin program and 50 Bitcoins were minted by “mining”. Since then, blockchain and Bitcoin have gained more and more attention. Many beginners think that it is tough to grasp blockchain and Bitcoin concept. In fact, it is not that difficult. Here are 9 numbers and keywords for you to get started.
The first block of Bitcoin is called the genesis block, which was mined by Satoshi Nakamoto on January 3, 2009 UTC time. All subsequent blocks are added to the former block containing the block header hash, and can be traced back to the genesis block. The block height of the genesis block is 0, so it is also called block 0.
The Bitcoin block capacity (size) has an upper limit, which is 1M. In other words, that means the Bitcoin block size cannot exceed 1M.
Before the Bitcoin network mines its very last token, there will be rewards for every block mined. The rewards will be halved every four years, which is also the halving cycle of Bitcoin block rewards.
The Bitcoin system is set to mine a block every 10 minutes on average. For each block, it may be longer or shorter than 10 minutes. If the computational power of the entire Bitcoin network changes, it will affect the block time. The Bitcoin system will adjust the difficulty of mining according to the changes in the computational power.
The initial block reward is 50 Bitcoins, and the reward amount lasted from the genesis block to the last block before the first halving, which is the 4-year halving cycle mentioned before. According to the halving cycle, it continues until the smallest divisible unit of Bitcoin-1 sat (1BTC=1 billion sat)-is mined, after that, Bitcoin can no longer be divided and cannot be halved and that means all the Bitcoins are mined.
The difficulty of Bitcoin mining will be adjusted every 2016 blocks. As the average time to mine a block is about 10 minutes, the time corresponding to 2016 blocks is 14 days, and all blocks whose block height is an integer multiple of 2016 are the blocks when the adjustment of mining difficulty happens.
If it took more than 14 days to mine 2016 blocks in the last difficulty adjustment period, it means that under the current computational power, the difficulty of mining is too high, and the system will reduce the difficulty accordingly. Otherwise, if it is less than 14 days, then the system will increase the difficulty. The goal of the system adjustment is to maintain the average block mining time at 10 minutes.
According to the system setting that Bitcoin block rewards are halved every four years and 1 sat is the smallest divisible unit, all Bitcoins are expected to be mined in 2140. After that, miners only earn transaction fees.
210,000-Block reward halved
The Bitcoin system stipulates that starting from the genesis block, for every 210,000 blocks, the block reward is reduced by half, until the smallest unit of Bitcoin-1 sat- is mined, which cannot be halved, and there is no more block reward. From block 0 to block 209999, there are exactly 210,000 blocks, and their block reward is 50 Bitcoins. In other words: for blocks with a block height of 210,000 integer multiples, such as blocks with block heights of 420,000, 630,000, and 840,000, the Bitcoin system will carry out the block halving event.
To be precise, starting from the genesis block, for every 210,000 blocks, the block reward is cut in half. What about the 4-year halving cycle mentioned before? This is because people calculate by every block mining time, which is 10 minutes, then the time required to mine 210,000 blocks is about 4 years (210,000*10 minutes/(365 days/year*24 hours/day*60 Minutes/hour) = 3.995 years), so there is a halving event in every 4 years.
21 million-Bitcoin in total
The total amount of bitcoin issued is 21 million, but why is it 21 million?
1、Block rewards are the only way to generate new bitcoins.
2、The block reward for the genesis block is 50 BTC.
3、The block reward is halved every 210,000 blocks.
4、The smallest divisible unit of Bitcoin is 1 sat. After that, Bitcoin can no longer be subdivided. There will be no block rewards for new blocks, and all Bitcoins are mined.
In summary, the exact total amount of Bitcoin can be calculated as: 20999999.9769 BTC, which is 0.0231 BTC less than 21 million BTC.
In the technological trend of the new digital economy era, blockchain and Bitcoin are not only a new technology, they also lead the spread of digital wealth and are closely related to digital currency. As large-scale blockchain applications are about to make their appearance in our life, knowing the above numbers and keywords will help you open the door to the world of blockchain and Bitcoin!
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