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Bitcoin isnt the first decentralised money; gold is another example. No more gold can be produced, and the ledger of gold - that is, the physical gold itself - cannot be manipulated or counterfeited. Golds heavy physical nature make it an inefficient and unrealistic currency solution.
Bitcoin is a consensus network that enables a new payment system and a completely digital money. It's the very first decentralised peer-to-peer payment network powered by its customers with no central authority or middleman. From an individual perspective, bitcoin is cash for the internet.
Bitcoin can also be seen as the most prominent triple-entry bookkeeping system in existence. Its the very first currency that's both decentralised and digital. It is more reliably rare than gold, more transactionally efficient than modern digital banking, and enables greater financial privacy than money.
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Bitcoin could still fail for one reason or another, but if it doesnt, it has the potential to be very, quite revolutionary.
All bitcoin transactions are listed on a public ledger called the blockchain. All transactions are then checked, verified, and confirmed by miners. Miners do this duty on incredibly powerful computers in exchange for newly minted bitcoin. With tens of thousands of miners contributing to the community, transactions run smoothly, and the network is secured.
Cryptography is an additional safety step, making it impossible for anyone to spend bitcoin from another pocket. Cryptography can be used to encrypt a wallet, therefore it cannot be used without a password.
Bitcoin is not controlled by a central company, bank, or financial institution. Therefore, it cannot be inflated just like the dollar. In fact, only 21 million bitcoin can be created.
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To ensure a steady speed of distribution, bitcoins production is modelled on gold mining. As more gold is mined, finding new gold grows more difficult. Likewise, as more bitcoin is minted, the process of production grows more difficult. The final bitcoin is going to be mined around the year 2140.
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Nobody. The bitcoin network has no owner, exactly like the technology behind email has no owner. Instead, bitcoin is controlled by all bitcoin users around the world.
While programmers do work to improve the applications, any changes at all to the base protocol are scrutinised from the many experienced core developers and the entire bitcoin community. All bitcoin users are free to decide on which applications and version they use, and, for bitcoin to function properly, these versions must be compatible.
Bitcoin is your first application of a concept called cryptocurrency. Cryptocurrency was described in 1998 by Wei Dai on the cypherpunks mailing list, which suggested the concept of a new form of money that utilized cryptography - rather than the usual trusted, central authority - to control its creation and monitor its own transactions. .
The very first bitcoin specification and proof-of-concept were printed in 2009 in a cryptography mailing list by Satoshi Nakamoto. Satoshi abandoned the project in late 2010 without revealing anything about himself, herself, or even themselves. The community has since grown exponentially, with thousands of developers working on bitcoin global.
Satoshis anonymity has increased unjustified concerns, many of which see here are linked to the misunderstanding of this open-source nature of bitcoin. The bitcoin protocol and applications are published openly, meaning any developer around the globe can review the code and create their own modified version of their bitcoin computer software.
Satoshis influence was, therefore, dependant on their thoughts being embraced by other people, meaning that they did not control bitcoin. As such, the identity of bitcoins inventor is probably as relevant today as the identity of the person who invented paper.
Bitcoin () is a cryptocurrency, a form of electronic money. It's a decentralized digital currency without a central bank or single administrator which can be sent out of user-to-user on the peer-to-peer bitcoin network without the need for intermediaries.7
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Transactions are confirmed by network nodes via cryptography and listed in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people using the name Satoshi Nakamoto9 and released as open-source software in 2009.10 Bitcoins are made as a reward for a procedure known as mining.
Bitcoin has been criticized because of its use in prohibited transactions, its high electricity consumption, price volatility, thefts from exchanges, and the possibility that bitcoin is an economic bubble.13 Bitcoin has also been used as an investment, even though many regulatory agencies have issued investor alarms about bitcoin.14