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Bitcoin isnt the first decentralised money; golden is another example. No more gold can be produced, and the ledger of gold - that is, the 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 method and a completely digital money. It is the very first decentralised peer-to-peer payment network powered by its customers with no central authority or middleman. From a user standpoint, bitcoin is cash for the internet.
Bitcoin can also be seen as the very prominent triple-entry bookkeeping system in existence. Its the first currency that is 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's got the potential to be very, quite revolutionary.
All of bitcoin transactions are listed on a public ledger known as the blockchain. All transactions are then assessed, verified, and confirmed by miners. Miners perform 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 procured.
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 like the dollar. In fact, only 21 million bitcoin can ever be created.
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To ensure a steady speed of distribution, bitcoins production is modelled on stone mining. As more gold is mined, finding new gold grows more difficult. Similarly, as more bitcoin is minted, the process of production becomes more difficult. The final bitcoin is going to be mined around the year 2140.
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Nobody. The bitcoin network has no Go Here owner, just 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 from the many experienced core developers and the entire bitcoin community. All bitcoin consumers are free to decide on which applications and version they use, and, for bitcoin to function properly, these versions have to be compatible.
Bitcoin is the 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 used cryptography - rather than a trusted, central authority - to control its creation and monitor its 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 worldwide.
Satoshis anonymity has raised unjustified concerns, many of which are linked to the misunderstanding of this open-source nature of bitcoin. The bitcoin protocol and applications are published openly, meaning any programmer around the globe can review the code and make their own modified version of the bitcoin software.
Satoshis influence was, therefore, dependant on their thoughts being embraced by others, their website meaning they did not control bitcoin. As such, the identity of bitcoins inventor is most likely as relevant now as the identity of the person who invented newspaper.
Bitcoin () is a cryptocurrency, a kind of electronic cash. It is a decentralized electronic currency without a central bank or single administrator that can be sent from 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 through cryptography and recorded 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 published as open-source software in 2009.10 Bitcoins are made as a reward for a procedure known as mining.
Bitcoin has been criticized for its use in illegal transactions, its high power consumption, price volatility, thefts from exchanges, and the possibility that bitcoin is an economic bubble.13 Bitcoin has also been utilized as an investment, although many regulatory agencies have issued investor alarms about bitcoin.14