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Bitcoin isnt the first decentralised money; golden is another example. No longer gold can be made, and the ledger of gold - that is, the gold itself - cannot be manipulated or counterfeited. Golds hefty 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 very first decentralised peer-to-peer payment network powered by its own customers with no central authority or middleman. From an individual perspective, bitcoin is money 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 money.
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Bitcoin could still fail for one reason or another, but if it doesnt, it has the potential to be very, very 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 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, which makes 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. For that reason, it cannot be inflated just like the dollar. In fact, only 21 million bitcoin can ever 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 grows more difficult. Likewise, as more bitcoin is minted, the practice of production becomes more difficult. The final bitcoin will probably be mined around the year 2140.
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Nobody. The bitcoin network additional info 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 software, any changes whatsoever to the base protocol are scrutinised from the most experienced core programmers and the entire bitcoin community. All bitcoin consumers are free to choose which applications and version they use, and, for bitcoin to function properly, these versions must 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 indicated the concept of a new sort of money that used cryptography - rather than the usual trusted, central authority - to control its creation and monitor its transactions. .
The first bitcoin specification and proof-of-concept were printed in 2009 in a cryptography mailing list by Satoshi Nakamoto. Satoshi abandoned the job in late 2010 without revealing anything about himself, herself, or themselves. The community has since grown exponentially, with thousands of developers working on bitcoin global.
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 developer around the globe can review the code and make their own modified version of their bitcoin software.
Satoshis influence was, therefore, dependant on their thoughts being adopted by others, meaning that they did not control bitcoin. As such, the identity of bitcoins inventor is probably as relevant now as the identity of the person who invented newspaper.
Bitcoin () is a cryptocurrency, a form of electronic money. It is a decentralized digital currency without a central bank or single administrator which can be sent from user-to-user on the peer-to-peer bitcoin network with no need for intermediaries.7
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Transactions are confirmed by network nodes through cryptography and recorded 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 software in 2009.10 Bitcoins are made as a reward for a procedure known as mining.
Bitcoin has been criticized because of its use in illegal transactions, its high electricity consumption, cost volatility, thefts from exchanges, and the possibility that bitcoin is an economic bubble.13 Bitcoin has also been used as an investment, although several regulatory agencies have issued investor alerts about bitcoin.14