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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 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 first decentralised peer-to-peer payment network powered by its users with no central authority or middleman. From a user 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 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 if it doesnt, it has got the potential to be very, very revolutionary.
All of bitcoin transactions are recorded on a public ledger called the blockchain. All transactions are then assessed, 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 procured.
Cryptography is an additional safety measure, making it impossible for anyone to spend bitcoin from another users wallet. Cryptography can be used to encrypt a pocket, so it cannot be utilized without a password.
Bitcoin is not controlled by a central company, bank, or financial institution. For that reason, it cannot be inflated just like the dollar. In reality, only 21 million bitcoin can 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. Likewise, as more bitcoin is minted, the process of production grows more difficult. The final bitcoin is going to probably be mined around the year 2140.
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Nobody. The bitcoin network has no owner, just like the technology behind email has no owner. Instead, bitcoin is controlled by all bitcoin users around the globe.
While programmers do work to improve the applications, any changes whatsoever to the base protocol are scrutinised by the many experienced core developers and the entire bitcoin community. All bitcoin consumers are free to decide on which software and version they use, and, for bitcoin to function properly, these versions must be compatible.
Bitcoin is your primary 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 form of money that utilized cryptography - rather than the usual reliable, central authority - to control its creation and monitor its own transactions. .
The first bitcoin specification and proof-of-concept were published in 2009 in a cryptography mailing list by Satoshi Nakamoto. Satoshi left the project in late 2010 without revealing anything about himself, herself, or even themselves. The community has since grown exponentially, with thousands of programmers working on bitcoin global.
Satoshis anonymity has raised unjustified concerns, many of which are company website 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 the bitcoin software.
Satoshis influence was, therefore, dependant on their ideas being adopted by others, meaning 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 electronic currency with no central bank or single administrator which can be sent from user-to-user on the peer reviewed 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 dispersed 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 applications in 2009.10 Bitcoins are made as a reward for a process known as mining.
Bitcoin has been criticized because of 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 several regulatory agencies have issued investor alarms about bitcoin.14