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Crypto World. Bitcoin. What is it and how does it work?

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Written by   47
3 months ago

Hello Community welcome, I hope you are very well, in Crypto World I will be showing summarized information of what this world of cryptography means, at the bottom of the page I will leave the links of the articles that I will be presenting.

On October 31 of this year will be 13 years, that is in 2008, that an unknown or unknown called Satoshi Nakamoto, because so far his identity is unknown, some say it is a person, others say it was a group of people, it is also claimed that it could be a federal entity, Well for that year Satoshi published an article on the mailing list of cryptography Metzdown, which wrote a p2p system, ie person to person, called Bitcoin, peer to peer electronic cash system, in the summary commented that it was a system of person to person payment where no financial institution was needed.

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Therefore we can say that Bitcoin is a decentralized digital currency, currency, of course, because like the money we know as the $, €, Bs, Pesos, can also be purchased with Bitcoin, it is digital because you can not see it physically, it is only in the Blockchain that we described in the previous article, the most important thing is that it is decentralized, because it does not depend on any financial institution to make any transaction.

Traditional money has value because we, the state or the government, give it that value, when we receive that money we can call it paper money. There are people who can create these currencies in an illicit way, it is illicit because only the authorized bank has the permission to do it, what can happen if a country does not stop printing these currencies?, we are living it in Venezuela, there is a hyperinflation that has devalued the currency to such an extent that they have removed 15 zeros, I am not going to talk about that.

Now let's imagine that we want to make a transfer to another person who is in another country, this would be extremely expensive, we have to pay the services of several banks so that the money can reach the other person.

So how does Bitcoin break this scheme?, this is where Blockchain technology comes into play, if I want to send Bitcoin to someone, I do not have to look for a bank to do it, being decentralized and all the people involved have a copy of the Blockchain, they know how much bitcoin you have, then only notice them and once they corroborate that amount, then they will deduct those Bitcoin from my wallet and place them in the wallet of the person to whom I send it. Of course, each person must have his virtual wallet, just like the bank if I send you money I send it to a bank account of the person who receives it. It is very safe because as explained in the Blockchain, the Bitcoin has a code that is stored in your digital wallet.

Now, all the people who participate will be able to see the amount of bitcoin that I have in my wallet, we have 2 answers: the first one is Yes, knowing a Bitcoin address they could see the entries and exits of the currency in that account and the other answer is No, because it is totally anonymous, this simple process is performed by a number of computers and is summarized in a set of numbers and letters processed by these machines. There is also a fee or gas to pay for the use of the system. Suppose I want to send 500 $ from Spain to a person in Venezuela, then you have to pay banking services and a percentage of the amount you send. With Bitcoin is different, it does not matter the amount to send, because here you only send information. For example if you have a notepad, if you put a word in a notepad and save it, but if you want to see the size of those files you will realize that it is similar and very small.

Finally, one bitcoin is composed of 100 million satoshi, so you can buy fractions of bitcoin with your local currency, through different exchange websites.

So far this is the summarized but very complete information about Bitcoin. Remember if you like this information you can share it with other people who may be interested in learning these topics.

Articles published by Mundo Crypto:

Blockchai Generalities

All content is original

The information obtained from the Web is indicated

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Saturday, October 09, 2021


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Written by   47
3 months ago
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