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Bitcoin isnt the initial decentralised money; gold is another example. No more gold can be made, and the ledger of gold - that is, the gold itself - cannot be manipulated or counterfeited. Golds hefty physical nature make it an inefficient and unrealistic currency solution.
Bitcoin is a consensus network that enables a new payment system and an entirely digital money. It's the first decentralised peer reviewed payment network powered by its own users with no central authority or middleman. From a user standpoint, bitcoin is cash for the internet.
Bitcoin can also be seen as the most prominent triple-entry bookkeeping system in existence. Its the first currency that's both decentralised and digital. It's more reliably scarce than gold, more transactionally efficient than modern electronic banking, and enables greater financial privacy than cash.
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Bitcoin could nevertheless fail for one reason or another, but when it doesnt, it's the potential to be very, quite revolutionary.
All of bitcoin transactions are listed on a public ledger called the blockchain. All transactions are then checked, verified, and confirmed by miners. Miners do this duty on incredibly powerful computers in exchange for newly minted bitcoin. With tens of thousands of miners contributing to the community, transactions run smoothly, and the network is procured.
Cryptography is an additional safety measure, making it impossible for anyone to spend bitcoin from another users wallet. Cryptography can be used to encrypt a pocket, so it cannot be utilized with no password.
Bitcoin is not controlled by a central company, bank, or financial institution. For that reason, it cannot be inflated like the dollar. In fact, only 21 million bitcoin can be created.
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To ensure a steady speed of distribution, bitcoins production is modelled on gold mining. As more gold is mined, finding new gold grows more difficult. Similarly, as more bitcoin is minted, the practice of production becomes more difficult. The final bitcoin is going to be mined around the year 2140.
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Nobody. The bitcoin network has no owner, just like the technology behind email has no owner. Instead, bitcoin is controlled by all bitcoin users around the globe.
While programmers do work to enhance the software, any changes whatsoever to the base protocol are scrutinised from the many experienced core programmers and the entire bitcoin community. All bitcoin users are free to decide on which software and version they use, and, for bitcoin to function properly, these versions must be compatible.
Bitcoin is your primary application of a concept called cryptocurrency. Cryptocurrency was described in 1998 by Wei Dai on the cypherpunks mailing list, which suggested the concept of a new sort of money that used cryptography - rather than a trusted, central authority - to control its creation and monitor its own transactions. .
The very first bitcoin specification and proof-of-concept were published in 2009 in a cryptography mailing list by Satoshi Nakamoto. Satoshi abandoned the project in late 2010 without revealing anything about himself, herself, or themselves. The community has since grown exponentially, with thousands of developers working on bitcoin worldwide.
Satoshis anonymity has increased unjustified concerns, many of which can be linked to the misunderstanding of this open-source nature of bitcoin. The bitcoin protocol and software are published openly, meaning any developer around the world can review the code and make their own modified version of their bitcoin computer software.
Satoshis influence was, consequently, dependant on their ideas being adopted by others, meaning they did not control bitcoin. As such, the identity of bitcoins inventor is probably as relevant today as the identity of the person who invented paper.
Bitcoin () is a cryptocurrency, a form of electronic cash. It is a decentralized digital currency without a central bank or single administrator that can be sent from user-to-user on the peer-to-peer bitcoin network without the need for intermediaries.7
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Transactions are confirmed by network nodes via cryptography and recorded in a public distributed ledger known her response as a blockchain. Bitcoin was invented by an unknown person or group of individuals using the name Satoshi Nakamoto9 and released as open-source applications in 2009.10 Bitcoins are made as a reward for a process known as mining.
Bitcoin has been criticized for its use in illegal transactions, its own high power consumption, cost volatility, thefts from exchanges, and also the possibility that bitcoin is an economic bubble.13 Bitcoin has also been used as an investment, although many regulatory agencies have issued investor alarms about bitcoin.14