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Bitcoin isnt the first decentralised money; golden is another case. No longer 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 an entirely digital money. It's the first decentralised peer-to-peer payment network powered by its users 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 electronic. It's more reliably scarce than gold, more transactionally efficient than modern electronic banking, and enables larger financial privacy than money.
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Bitcoin could still fail for one reason or another, but when it doesnt, it has the potential to be very, very revolutionary.
All bitcoin transactions are recorded on a public ledger called the blockchain. All transactions are then checked, verified, and confirmed by miners. Miners do this obligation 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 security measure, which makes it impossible for anyone to spend bitcoin from another users wallet. Cryptography can be used to encrypt a pocket, so it cannot be used without a password.
Bitcoin is not controlled by a central company, bank, or financial institution. For that reason, it cannot be inflated like the dollar. In reality, only 21 million bitcoin can be created.
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To ensure a steady rate of distribution, bitcoins production is modelled on gold mining. As more gold is mined, finding new gold becomes more difficult. Similarly, as more bitcoin is minted, the practice 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 globe.
While developers do work to enhance the applications, any changes whatsoever to the base protocol are scrutinised by the most experienced core developers and the entire bitcoin special info community. All bitcoin consumers are free to choose which software 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 clarified in 1998 by Wei Dai on the cypherpunks mailing list, which suggested the concept of a new sort of money that utilized cryptography - rather than a reliable, central authority - to control its creation and monitor its own transactions. .
The very first bitcoin specification and proof-of-concept were published in 2009 in a cryptography mailing list by Satoshi Nakamoto. Satoshi abandoned the job 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 raised unjustified concerns, many of which can be linked to the misunderstanding of the open-source nature of bitcoin. The bitcoin protocol and applications are published openly, meaning any programmer around the world can review the code and make their own modified version of the bitcoin software.
Satoshis influence was, consequently, dependant on their thoughts being adopted by others, meaning they did not control bitcoin. Therefore, the identity of bitcoins inventor is most likely as relevant today as the identity of the person who invented paper.
Bitcoin () is a cryptocurrency, a form of electronic money. It is a decentralized electronic currency without a central bank or single administrator which can be sent out of user-to-user on the peer reviewed bitcoin network with no need for intermediaries.7
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Transactions are verified by network nodes via cryptography and recorded in a public distributed ledger known as a blockchain. Bitcoin was invented by an unknown person or group of individuals using the name Satoshi Nakamoto9 and published as open-source applications in 2009.10 Bitcoins are made as a reward for a process known as mining.
Bitcoin has been criticized for its use in prohibited transactions, its own high power consumption, cost volatility, thefts from exchanges, and also the possibility that bitcoin is an economic bubble.13 Bitcoin has also been used as an investment, although many regulatory agencies have issued investor alerts about bitcoin.14