Friday, July 7, 2017

What is Bitcoin? How does it work?

Basically Bitcoin is a digital currency, created and held electronically. There is no control on Bitcoins. Bitcoins are not in print form like our currency. This digital currency is produced by people, business and all computers running all around the world by using a software that solves mathamatical problems. Bitcoin is also known as Cryptocurrency.


Why it is different from other currencies?

Bitcoin is in digital form, it is not like other printed currencies we have. We can use Bitcoins to buy things electronically. It's like conventional dollars, euros which are also traded digitally.
There is no control on Bitcoins, that is is decentralized. This thing makes it different from other currencies. This puts some people at ease, because large banks control their money.

Who created Bitcoins?

Satoshi Nakamoto created Bitcoin. He is a software developer who proposed idea of Bitcoin. Which is electronic payment system based on mathamatical proof. The actual idea was to produce a currency independent of any central authority, can tranfer electronically and instantly witg=h very low transaction fees.

Who prints it?

Actually no one. Bitcoin isn't physically printed by a central bank, it has its own rules. Bitcoins are created digitally. Bitcoins are Mined with the help of computer software. It is created by a community of people that anyone can join. Bitcoin has its own payment network.

 You cant churn out unlimited bitcoins. There are some rules and protocols that makes Bitcoin work. It says that only 21 millions of bitcoins can be created by miners.

What are characteristics?

1. It is decentralized. That means there is no control on Bitcoin. Every machine that can mine bitcoin and processes transaction make up a part of network and that machines work together.

2. It is very easy to set up.

3. It's anonymous that users can hold multiple bictoin addresses and they are not linked to name, address or other personal information.

4. It is completely transperent. Bitcoins store will tell you every single detail of transaction happened in the network.

5. It is very fast that you can send money anywhere you want and it will arrive in minutes. Most important thing is bitcoin dosen't charge for transactions.

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At September 11, 2017 at 5:05 AM , Anonymous Parveen said...

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At November 15, 2017 at 5:33 PM , Blogger Adrian khan said...

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At January 5, 2018 at 6:34 PM , Blogger shruti haasan said...

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