Bitcoins are also called crypto currencies.To solve some of the confusion about bitcoin, we need to seperate it into two categories.On the one hand, you have bitcoin-the-token, a snippet of code that represents ownership of a digital concept – sort of like a virtual IOU. On the other hand, you have bitcoin-the-protocol, a distributed network that maintains a ledger of balances of bitcoin-the-token. Both are referred to as “bitcoin.”
The system allows payments to sent between users without passing through bank or payment gateway. It is created and held electronically. Bitcoins aren’t printed, like rupees or dollars- they are produced by computers all around the world using free software.
A software developer name of Satoshi nakamoto proposed bitcoin in 2008, as an electronic system based on mathematical proof.Nakamoto wrote that such a currency uses “cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party”.This sort of stateless, bank-free currency uses a distributed, cryptographically secure “blockchain” to record payment transactions.It can be used yo pay for things electronically.These are forms of digital money that use encryption to secure transactions and control the creation of new units.The plan was to make a form of currency not controlled by governments or businesses, that you could trade globally with no cost and without having to reveal your identity.The popularity of Bitcoin has spawned many copycats – sometimes called “altcoins”.To make things more confusing, there are also “second generation” virtual currencies like Ethereum and Bitcoin Cash.Mining is a tricky process that involves solving a complex maths problem that takes both time and computing power. The more powerful your computer (and thus, the quicker you can crunch the numbers) means a more difficult problem.
Custom-built Bitcoin mining hardware and software is now available, allowing miners to find Bitcoins even faster.Bitcoin wallets are simply specially-designed programs that store your Bitcoin, the same way a regular wallet would store your cash.They can be used either on a desktop computer or a smartphone and can be stored securely on the web so they can be accessed from anywhere.



Leave a Reply
