Bitcoin

Bitcoin (₿) is the world's first open-source cryptocurrency known as a decentralized digital currency. No financial institution or clearing house is required for transactions and it is not a currency issued by the government of any country. [1] . [2] [3]



Bitcoin logo

Bitcoin transactions are conducted online directly from the sender to the recipient's computer. [4] These transactions are authenticated through cryptography and are publicly recorded in a ledger that is distributed to all. This open and distributed ledger is called a blockchain. [5] Bitcoin is produced through mining where transactions are recorded and verified based on the processing power of the computer. [6] The total amount of bitcoin that will be generated from the transaction decreases every four years. Thus, a total of 210,000,000 bitcoins will be created by 2140 and no new bitcoins will be created in the future. [6]

Since no financial institution is required to complete the Bitcoin transaction, detailed information about the actual credentials of the sender and receiver of the transaction cannot be followed. [8] [9] Bitcoin is becoming increasingly popular in more than one country. [10] Bitcoin is currently used as a digital currency, product or service. In addition to legal goods transactions, Bitcoin is also used for drug smuggling and money laundering. Although Bitcoin has gained popularity as a digital currency, it has been criticized by many for its sharp fluctuations against various international currencies, its scarcity, and its limited business use. [11] [12]

Bitcoin's first ATM machine was recently launched in Vancouver, Canada. [13] The United States and the Canadian government are considering registering Bitcoin customers to curb drug trafficking, illegal arms trade and other illegal uses. [14] [15]

History

The bitcoin.org domain name was registered on August 16, 2006. [18] In November of the same year, Satoshi Nakamoto, author, published what and how Bitcoin works on the mailing list on the metzdowd.com website. Then in 2009 Satoshi unveiled the source code of Bitcoin on a platform called SourceFory. [17] The Bitcoin network was broadcast this month and Satoshi mined the first blockchain in the blockchain known as the "Genesis Block". [18] [19] With a man named Nakamoto and Hal Fini. Satoshi gave 10 bitcoins to Han Fini in the transaction. [20] In the first year, Satoshi mined about 1 million bitcoins. [21] The acquisition was handed over to a software developer named Gavin Andresen. [22] Gavin Andresen later became the chief developer of the Bitcoin Foundation. Satoshi Nakamoto has not been found since the year.

Procedures



Image of a bitcoin transaction log.

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 processing is done 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 this stored bitcoin is sent by the customer to someone else's account, a unique electronic signature is created for this transaction which is monitored by other miners and stored secretly 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.

Bitcoin is considered by many to be the future money.

Validation

Bitcoin transactions were declared illegal by Bangladesh Bank in 2014. [23] According to them, "transactions in these currencies are not authorized by Bangladesh Bank or any other regulatory body. And is not supported by the Prevention of Money Laundering Act, 2012. "[24]