A bitcoin is a digital and standard currency that can be used worldwide and is created and hold electronically unlike printed currency. No one owns it or controls it, they are produced by people, businesses and running computer applications. It cannot be inflated at will and is limited to 21 million. It can be used to receive or send any amount of money anytime, with anyone and anywhere in the world. Its main advantage is that the payments made by bitcoins cannot be blocked and its wallet cannot dry out. it uses peer to peer technology that does not operate under any centralized authority or banks but it operates through networks.And, most importantly is open source which means nobody owns it or controls it but everybody can take part.
Origin of bitcoin
It was proposed by a software developer named Santoshi Nakamoto. The purpose behind this proposition was to develop an electronic means of currency that was not under any authority, it would be transferred electronically and it would cost less and the whole payment and transaction would be done electronically based on mathematical proof.
- Choose your wallet – you can have your e-wallet
- Get bitcoins- Getting bitcoin is somewhat similar to earning paper currencies. You can either get by selling something for which you have them or you can ask the employer to pay in bitcoins or you can buy them from trusted bitcoin exchanges.
- Spend bitcoins- The first step is finding the businesses that accept Bitcoins easily and use instant and secure payment system.More and more businesses, large and small, accept Bitcoin payments every day.
Shape of Bitcoin
Unlike paper currency, bitcoins does not have any physical existence but bitcoin is created digitally, by a community of people that anyone can join. Bitcoins are ‘mined’, using computing power in a distributed network.
This network also processes transactions made with the virtual currency which is effectively making bitcoin its own payment network.
What is Bitcoin based on?
It isn’t based on gold, it’s based on mathematics. Around the world, people are using software programs that follow a mathematical formula to produce bitcoins. The mathematical formula is freely available so that anyone can check it.The software is also open-source, meaning that anyone can look at it to make sure that it does what it is supposed to.
Features of Bitcoin
- It is anonymous
- It is decentralized
- It is completely transparent
- It is easy to set up
- It is fast
- Transaction fees are miniscule.
Blockchain and Mining of Bitcoin
In bitcoin, money isn’t printed at all – it is discovered. Computers around the world ‘mine’ for coins by competing with each other.People are sending bitcoins to each other over the bitcoin network all the time, but unless someone keeps tracks and records of all these transactions, no-one would be able to keep track of who had paid what. The bitcoin network deals with this by collecting all of the transactions made during a set period into a list, called a block. It’s the miners’ job to confirm those transactions and write them into a general ledger and this management is called Blockchain.It is non-repudiable
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