What is Bitcoin and how does Bitcoin work
Bitcoin is a cryptocurrency traded through open source cryptographic protocols.
Bitcoin transactions do not require any financial institution, regulatory body or clearing houseSatoshi Nakamoto introduced the currency in 2009. He called this monetary system peer-to-peer transactions.
Bitcoin transactions are protected by a server called Bitcoin Miner. When Bitcoin is transacted between multiple computers or smartphones connected to a peer-to-peer communication system, its central server updates the user's laser. New bitcoins are generated as soon as a transaction is completed. By 2140, the newly created bitcoins will be halved every four consecutive years. After 2140, when 21 million bitcoins are created, no new bitcoins will be created.
Bitcoin is becoming increasingly popular in many parts of the world as no financial institution is required to complete Bitcoin transactions and its transaction movements cannot be tracked in any way. Bitcoin has gained popularity as a digital currency.
Bitcoin's first ATM machine was recently launched in Vancouver, Canada. The idea is that it will take Bitcoin further to establish itself as a currency.
Bitcoin transactions are either peer-to-peer or from customer to customer's computer. It does not pass through a central clearing house or has a regulatory body to control it. All Bitcoin processes are completed online through an open source software. Anyone can generate bitcoin through Bitcoin Miner. The process of generating bitcoin is always predictable and limited. As soon as Bitcoin is generated, it is stored in the customer's digital wallet.If the stored bitcoin is sent by the customer to someone else's account, a unique electronic signature is created for the transaction, which is monitored by other miners and stored confidentially but securely within the network. At the same time the current ledger of the customers is updated in the central database.When a product is purchased with Bitcoin, it is sent to the seller's account and the seller can later repurchase the product with that Bitcoin, on the other hand an equal amount of Bitcoin is deducted from the buyer's ledger. The total number of bitcoins is redefined every four years to keep up with the real currency.
