Bitcoin

People who browse the Internet and search for "What is Bitcoin" are familiar with Bitcoin. While others have heard of Bitcoin, they do not know what it is and why, or what it is used for. Let's find out what Bitcoin is, its use, origin, etc.

What is Bitcoin? (What Is Bitcoin?)



Bitcoin is a coin that is not printed on paper. Not even in gold, silver, copper coins. Bitcoin is a digital currency or cryptocurrency that transacts only in the net world. The importance of trading on the Internet.

It is a virtual currency, with no controlling country, no organization, no bank. As a result, there is no way to know how many bitcoins are on the market or whether they are being counterfeited.

Initiation

It is said that Bitcoin became the medium of trade in Netdunia by 2006. Although Satoshi Nakamato is believed to be the creator of Bitcoin, no trace of him has been found. In October 2006, Satoshi Nakamoto, a 9-page research proposal entitled "Bitcoin: A Peer-to-Peer Electronic Cash System", was published online, giving an idea of ​​the first Bitcoin. In short, it is a peer-to-peer electronic currency payment system that allows one to complete transactions with another without having to go to a third party or organization. With that you can refrain from ‘double spending’. In this system, all types of transactions will be done not on the basis of trust, but on the basis of 'proof of work' and all types of transactions will be recorded in a specific network.

Satoshi has created the first software for bitcoin ‘mining’ since the proposal was published. ‘Mining’ is the method of making bitcoin. In January 2009, Satoshi released the first bitcoin currency. The true identity of this Satoshi Nakamoto is still unknown.

Usage and price



The price of Bitcoin changes every hour. In terms of Indian currency, sometimes a bitcoin can be worth Rs 6 lakh, sometimes even more.

This currency, created entirely digitally, has no physical existence in reality. No central bank controls it. Its monetary system continues to operate as a result of its global use by individuals or entities. Due to the peer-to-peer system, direct transactions are done without any organization or middleman. Due to the use of cryptography, it is impossible to access Bitcoin without proper permission. Another thing is that it is possible to trade in Bitcoin under a completely pseudonym.

The idea is that the value of Bitcoin will increase over time.

How it works



Being a peer-to-peer network, Bitcoin transactions are completed from the ‘wallet’ of the donor and the recipient to the ‘wallet’. Bitcoin is stored in the 'wallet'. It can be either online or offline. A bitcoin user has to use two keys. A ‘Public Key’, it is open to everyone. The other is the 'private key', which is kept secret and used to secure transactions.

The history of the transaction is recorded in a ledger (public ledger), called a 'block chain'. In this case ‘public key’ is used and the same transaction cannot be repeated by the same user. From the first transaction account on the blockchain to date, all accounts are preserved and are updated regularly.