Introduction: Bitcoin – Cryptocurrency
Bitcoin is a cryptocurrency, the currency that is hidden, secret, or not known to the public. It is a kind of digital currency that, created in 2009. Transactions are made online, from computer to computer or mobile phone. It has no physical existence. It is just a computer file stored in a computer having a link from person to person.
Most salient feature of Bitcoins is, it is not controlled by any government authority. Bitcoins are not issued by any bank or government. It has no legal tender. Transactions are made directly from user to user without the mediation of any bank or financial agency. And just like mobile gaming innovations, virtual money is also the next big thing. So let’s learn about Bitcoin more, in the next section.
Who Introduced Bitcoins?
This is still unknown who has the idea behind it, but Satoshi Nakamoto is considered to associate with the people who released the original Bitcoin white paper in 2008. They started to develop bitcoin software, which introduced in 2009. Since then many people have a claim to be or considered as the actual people behind it.
How Does it Work?
Bitcoin currency exchange has the same procedure to make transections as banks do. But here, banks are not involving. And the system works person to person. As mentioned above that, it has no physical value, it is just a computer file that is stored on a computer. People send or receive bitcoins through a computer to a computer or mobile phone. Every single transaction is recorded in a public list called the Blockchain.
How to Get Bitcoins?
- By using actual money.
- After selling things and receiving Bitcoins
- Making transactions through a computer.
How to Open an Account and Make Transactions?
Installation of software
-
Bitcoin Wallet
The first step is to install a software bitcoin wallet on a computer or mobile. It will generate a bitcoin address. When the account holder has an address, it means he has an account operated in the Bitcoin wallet.
Blockchain Blockchain is a ledger through which all the transactions are processed. In blockchain transactions of Bitcoin wallets are calculated so that, the balance of new transactions can be verified, making sure that transactions are owned by the actual account holder. The transaction is a transfer of data between Bitcoin wallets that also recorded in the blockchain.
-
Private Key
Bitcoin has a secret key called the private key, to use for making transactions. A security thing that notifies the user that the completed transaction, is successful.
-
Cryptographic Signature
A cryptographic signature is a mathematical process that allows someone to prove ownership. Such a signature also aborts the alteration of transactions.
-
Mining
A blockchain that is included in mining, is used to confirm transactions that are pending. This runs chronological order in a blockchain that allows different systems or devices to agree on a state of the system, to protect the neutral state of the network.
Is Investment in Bitcoins Useful or Risky?
One shade of opinion is that future is of digital currency, in their opinion, it is the fastest currency to move from one place to another. And also, has a low fee payment system for transactions across the globe. In case of fraud, no one can file a suit in court.
