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Bitcoin isnt the first decentralised money; gold is another example. No longer 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 system and a completely digital money. It is the first decentralised peer reviewed payment network powered by its own users 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 electronic. It's more reliably scarce than gold, more transactionally efficient than modern digital banking, and enables greater financial privacy than cash.
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Bitcoin could still fail for one reason or another, but when it doesnt, it has got the potential to be very, quite revolutionary.
All bitcoin transactions are recorded on a public ledger called 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 measure, making it impossible for anyone to spend bitcoin from another pocket. 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. Therefore, it cannot be inflated like the dollar. In fact, 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. 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 enhance the software, any changes at all to the base protocol are scrutinised by the most experienced core developers and the whole 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 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 sort of money that utilized cryptography - rather than the usual reliable, central authority - to control its creation and monitor its own transactions. .
The very first bitcoin specification more information and proof-of-concept were printed in 2009 in a cryptography mailing list by Satoshi Nakamoto. Satoshi left the project in late 2010 without revealing anything about himself, herself, or themselves. The community has since grown exponentially, with thousands of developers working on bitcoin worldwide.
Satoshis anonymity has increased unjustified concerns, many of which can be 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 their bitcoin computer software.
Satoshis influence was, consequently, dependant on their ideas being adopted by other people, meaning they did not control bitcoin. Therefore, the identity of bitcoins inventor is most likely as relevant now as the identity of the person who invented paper.
Bitcoin () is a cryptocurrency, a kind of electronic money. It is a decentralized electronic currency with no central bank or single administrator that 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 verified by network nodes through cryptography and recorded in a public distributed ledger known as a blockchain. Bitcoin was invented by an unknown person or group of people using the name Satoshi Nakamoto9 and released as open-source software in 2009.10 Bitcoins are created as a reward for a process known as mining.
Bitcoin has been criticized for its use in illegal transactions, its own high electricity consumption, cost volatility, thefts from exchanges, and the chance that bitcoin is an economic bubble.13 Bitcoin has also been used as an investment, even though several regulatory agencies have issued investor alarms about bitcoin.14