Bitcoin is a new digital currency created by Satoshi Nakamoto in 2008 and released in 2009 as open-source project (You can found his code at GitHub)
How Bitcoin works?
Users sends Bitcoins using their wallets to each other, every transaction must pay aminer fee in order to confirm the transaction. Bitcoins sended will not be avaliable untill confirmation. Confirmations are made throught Bitcoin network.
The Bitcoin network is formed by Miners who share their computer power to resolve math algorithms. This can be done thanks to P2P protocol without any intermediary like a centralized server.
Bitcoin wallet
Every user who wants to use Bitcoin needs a wallet, Wallet are the place where you store all your bitcoin address where you will receive bitcoins.
Bitcoin privacy
Since Bitcoin addresses are generated randomly using Algorithms nobody can track you unless you share your address with them. This can be solved by using temporally address for every transaction you made.
Bitcoin Vs. common money
Bitcoin has many advantages over real money one of those is that nobody control Bitcoin as is not part from any Bank or governments. There is no central banks who prints it, Bitcoins are generated by miners using math algorithm through their computers.
In the end Bitcoin is not different to real money and you can buy online using it like you usually do with USD or Euros. See sites accepting bitcoin.
Bitcoin value
Bitcoins are not backed by Silver or Gold like physical currencies, his price is entirely dependent from Bitcoin markets and these can be influenced by external events like global economy, We can say bitcoin is based of Math algorithm.
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