We are all more or less familiar with the word bitcoin in one way or another. There is no end to the hype in the world of technology with Bitcoin. But why this nonsense? What's in this bitcoin? Let's find out the unknown facts about Bitcoin

What is Bitcoin?

Bitcoin is a type of digital currency that uses encryption techniques to generate a single currency in a controlled manner and verify its transfer of funds. This type of currency is called cryptocurrency. It operates independently without the intervention of the central bank. It cannot be touched or touched like ordinary currency. The exchange can be done without any hassle. This is why Bitcoin has become so popular in such a short time.

What is cryptocurrency?

Cryptocurrency is some computer code that has financial value. These codes are created using high-powered computers. These codes are created by performing all the complex mathematical calculations. There are millions of computer users to monitor the entire system. These are called minor.

The word crypto comes from cryptography. The term refers to the security method of transacting codes for buying and selling. Although Bitcoin is the most popular cryptocurrency, there are many other types of cryptocurrencies. Etherium is one of them.

The invention of bitcoin:

Bitcoin is a virtual transaction system launched in 2009 about 9 years ago. Although not in circulation in Bangladesh, this transaction system has become increasingly popular all over the world. The inventor had been speculating about this for so long in the entire technology world. An Australian citizen has claimed to be the inventor of Bitcoin, putting an end to this speculation. The inventor of Bitcoin, Satoshi Nakamoto, used to conduct his activities under a pseudonym. Craig Wright claims Satoshi Nakamoto is his pseudonym. Bitcoin developer Gavin Anderson claims that he is 98 percent sure that Craig E is Satoshi Nakamoto. But Craig Wright's claim quickly raised suspicions in the cryptocurrency community. He claims he was going to reveal the first key's credentials. But in the face of a storm of criticism, he withdrew.

Satoshi Nakamoto did not work alone to bring Bitcoin to this stage. Hal Finn, an early member of the "Cipherpunk Movement", claims to have discovered Satoshi Nakamoto's Bitcoin application from a cryptocurrency mailing list. In a 2013 blog post, Hal Finn expressed his keen interest in decentralized online currencies. When Satoshi Nakamoto announced the release of the first software, Hal Fin offered to mine the first ten bitcoins from Block 60, which Satoshi sent for experimental use. His latest post on the Bitcoin forum in Hal Finn before his death said that Satoshi Nakamoto's real identity is still a mystery to him. At various times since then, many others like Nick Sabo have claimed to be the inventors of Bitcoin, but the real Satoshi Nakamoto has yet to be convinced.

Who is this Craig Wright?

Born in 1960 in Brisbane, Australia, he is a computer scientist and businessman. His full name is Craig Steven Wright. He graduated from Padua College, Brisbane in 1986. He later did a PhD on "The Quantification of Information Risk" at Charles Start University. Charles Start University told Forbes Magazine that Craig Steven Wright earned two master's degrees from the university.

He finally earned his PhD in February 2016. Craig Wright also wrote many books. . He was also a trustee of the United Church of New South Wales. Worked for various companies in his career. Among them are Ozmail, K-Mart and the Australian Securities Exchange. He has also served as a security consultant for Indian multi-national companies Mahindra and Mahindra. He designed the architecture of the world's first online casino, called Lester's Online. He is the Information Systems Manager of an accounting firm called BDO Kendallus.

He was convicted in 2004 by the South Wales Supreme Court of contempt of court. He was jailed for 28 days. Wright served as chief executive officer of a technology firm called Hotware Preemptive Intelligence Group. Through this firm, he plans to establish the world's first bitcoin-based bank. But later the plan failed in 2014 due to various complications of the Australian tax office. Craig Wright is the founder of a cryptocurrency company called Dimmergan Limited. He is also the founder of cybersecurity and computer forensics company Panopticript PTY Limited.

Why so much privacy of the inventor?

Many may wonder why the inventor of such a groundbreaking invention wants to keep his identity secret. This is because the inventors of such new monetary systems in the past have had to suffer difficult consequences due to their invention. In 1998, Hawaii resident Bernard von Knotthas was sentenced to six months 'house arrest and three years' probation for violating federal law by discovering the "Liberty Dollar." In 2008, one of the first digital currency systems, E-Gold, was shut down for money laundering. Satoshi Nakamoto operated Bitcoin undercover to avoid such legal scandals.

Why so much criticism about Bitcoin?

Criminals are behind making Bitcoin so popular. Yes, you heard right. Bitcoin is free of legal barriers so it can be easily used for various criminal activities by evading the law. When this matter came to the notice of the criminals, from 2011 to 2013, a lot of trade started among the criminals.

Particularly hidden from the average user of the Internet, known as the Dark Web, the amount of Bitcoin transactions here skyrockets. Because this Dark Web is beyond the jurisdiction of the World Wide Web and there is no legal oversight. As a result the Dark Web is a popular place for criminals. As a result, the price of Bitcoin rises very fast. There have also been cases of unskilled investors losing thousands of dollars due to scams. Thus, the word bitcoin has become popular due to various negative events.

How does Bitcoin work?

Bitcoin is a completely virtual currency. It does not require a bank to transact or save. Although it cannot be touched or touched, its use is similar to that of ordinary coins. Bitcoins are used to purchase products and services online. Many people keep depositing bitcoin in the hope of future price increase. Bitcoin transactions are done through peer-to-peer system. Bitcoins are stored in the user's wallet. Wallets can be both online and offline. Wallet is a kind of personal small database. This database can be stored on computer drives, smartphones, tablets or cloud storage. Various applications have also been created for use as wallets.

Each wallet has a specific address. This address is encrypted. Bitcoin transactions are transacted through the transfer of bitcoins from one address to another. Each transaction is recorded in an open ledger called Blockchain. One bitcoin is added to the network after each transaction is completed. This is called bitcoin mining. Blockchain and bitcoin mining are two of the most important issues in the Bitcoin transaction system. Without a detailed knowledge of these two issues, it is not possible to fully understand the bitcoin transaction system. But we will not go so deep. Let's not easily know about these two things.

Blockchain:

Blockchain is a great invention of Satoshi Nakamoto. The invention is so groundbreaking that in a few short days, its name has spread in people's mouths. Blockchain technology creates a new kind of Internet by making it possible to distribute digital information instead of copying it. Blockchain was originally created to use digital currencies like Bitcoin for transactions.

Imagine a spreadsheet containing copies across multiple computer networks for ease of understanding. Suppose the spreadsheet on this network is updated regularly. Simply put, blockchain technology is like that. The information stored in the blockchain is shared and stored in a kind of database. Blockchain databases are not stored in a specific location. This means that the saved records are completely open and anyone can verify it if they want. Because the records are decentralized, hackers cannot destroy them even if they want to. Records are constantly being posted on millions of computer networks and can be accessed by any Internet user.

Bitcoin mining :

Bitcoin mining is a method by which Bitcoin transactions are verified and its records are added to an open ledger called Blockchain and a new bitcoin is released. Anyone using the internet and related hardware can mine bitcoin. Bitcoin mining involves solving complex mathematical problems by compiling information into blockchain blocks in bitcoin transactions. The first person to solve the problem added a new block to the blockchain and realized his remuneration. Fees include transaction data collection fees and newly unveiled bitcoins. The bitcoins that are exposed as a result of each block being mined are called mine rewards.

Mine rewards are halved every 210,000 blocks in a row or every 4 years. Block Reward 50 started in 2009. At present in 2016 the amount is 12.5. Thus, at least 21 million bitcoins will be exposed at a time, which is the highest number of bitcoins. Many may be wondering how complex are the mathematical problems of bitcoin mining? There is a funny thing here. The complexity of the problems depends on the ability of the solver. The complexity of the mathematical problems changes every 2016 block.

This method is followed to keep the number of block inventions unchanged. The greater the resolution of the hardware, the greater the complexity of the problem. Again, the lower the hardware resolution, the less complex the problems. Following this method, the number of exposed blocks in bitcoin mining is kept unchanged. Hardware with a lot of processing power is needed to unlock the blocks. As soon as each block is exposed the message goes to the mining network and is verified by the users of the network.

Early computer CPUs were used for mining in the early days. Later it was seen that GPU mining is more successful than CPU. As a result, GPUs became increasingly popular in mining. Later, hardware called "ASIC" became the most popular for bitcoin mining. It was first opened in the market in 2013. Later many more improved versions of it came on the market. However, if you can't use the new hardware, you can't make a lot of money by mining bitcoin. Because it requires a lot of electrical power.

How Safe is Bitcoin and Blockchain?

Many may be wondering how safe is an economy that cannot be caught or touched? It is normal to have such questions in my mind. I am also giving the answer to the question.

Each user's bitcoins are stored in their own wallet. We have already discussed the type of this wallet. Each wallet has a unique address. When bitcoin is transacted from one wallet to another, it is recorded in an open ledger called a blockchain. This blockchain is a self-auditing ecosystem. It updates itself every ten minutes. As this ledger is open to all, there is no chance of any fraud here. Due to this method, it is not possible for anyone to create fake bitcoin or provide wrong information about the transaction.

This is because in order to illegally modify or correct any information within the blockchain, the entire blockchain must be controlled at the same time. It is not possible to achieve the amount of hardware required to do this. Although each bitcoin contains information about its wallet, Bitcoin does not contain any personal information of the user of that wallet.

Why do we need to know about Bitcoin?

Bitcoin is a modern epoch-making currency system. Digitization of everything is happening in the current age of technology. This digitization will have a touch in our monetary system as well. According to technologists, in the near future, digital currency will be the only means of transaction. Although Bitcoin has been banned in many countries, including Bangladesh, due to various legal complications, it is hoped that in the future it will become well-known as a conventional currency system. So in order to keep pace with the technological revolution, it is good to know about this new groundbreaking innovation.

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