What is Bitcoin?
It is the first decentralized digital currency. Bitcoins were discovered by A programmer known as Satoshi Nakamoto in Year 2008 but was made an open source in year 2009. It is an software based online payment method.
It is a digital coin that you can send through the internet. The currency is created and exchanged independently of any government or bank.Since it’s an open source and nobody owns or control it, everyone can take part. The currency is generated through a computer program and can be converted into cash after being deposited into virtual wallets.
How it works?
Bitcoin supply is controlled by a computer algorithm. You first have to download and run a Bitcoin client software. Once you download and run the software, it connects over the internet to the decentralized networks of all Bitcoin users and generates a pair of keys, which you’ll need to exchange Bitcoins. One key is private and kept hidden and the other one is public. But, the process of generating Bitcoins is quite complicated, as it involves solving complex algorithms. When you make a transaction,
your Bitcoin software performs a mathematical operation to combine the other party’s public key and your private key with the amount of Bitcoins that you want to transfer. Verification of the transaction is also made by sending out the result of operation to the distributed Bitcoin network.
Comparative to other currencies it has certain advantages:
It can be transferred directly from person to person without any central authority.
You can use them in any country.
It can not be frozen.
Bitcoins network is free, except for a voluntary fee you can use to speed up transaction process.
Deepika is a professional blogger at Writing Geeks, She’s a B.com (H) graduate who loves to write in her free time. She also promotes and publishes writings of emerging & upcoming new writers on her blog.
Follow her on Facebook | Twitter
Website : Writing Geeks