Quick Brief explanation of: Bitcoin
Bitcoins are a revolutionary concept. With Bitcoins, It enables a person transfer value from one person to another,digitally, without involving ANY 3rd party, bank or payment processor.
All transactions from the very first transactions are recorded on the blockchain.
A secure Decentralized, open source, Distibuted Public Ledger. Which uses cryptographic encryption methods to confirm ans secure the transactions on the network.
The more people that confirm transactions on the network (a mining), the stronger the security.
Bitcoin is a type of electronic digital currency in which P2P (Peer to peer) and encryption methods are used to regulate the creation of units of currency and which uses “Blockchain” technology to publicly verify a transfer of value between two Bitcoin addresses.
It operates independently of any central authority or bank. It is Open source and was invented by an anonymous person or group known as “Satoshi Nakamoto”.
Decentralized, open-source P2P network.
Bitcoins aren’t printed like traditional Fiat currencies, they come into circulation digitally using a process called “mining”.
Essentially, miners put in work in the form of processing power verifying transactions on the network.
Miners who successfully confirm a block of transactions, receive a reward. This reward is the way new Bitcoin come into circulation.
It’s core technology -The Blockchain
The blocks are designed in such a way that each block will take 10 minutes to complete. These blocks make up a chain publicly showing every Bitcoin transaction that has ever been broadcast on the network – We call this the Blockchain. Every single miner will confirm every transaction on the network, this solves the problem of counterfeiting and means that no Bitcoins can ever be sent twice.
Who controls the supply of Bitcoin?
Unlike traditional currencies Bitcoins cannot be printed in unlimited amounts. They were designed so that only 21,000,000 (21 Million) units will ever be mined.
This process is governed by trustless cryptographic protocols which make it secure.
Even though there will only ever be 21 million Bitcoins in existence, each bitcoin is divisible in to 100,000,000 (100mil) segments known affectionately as “Satoshi’s” after the creator. 1 Satoshi = 0.00000001 BTC.
Is it secure?
Bitcoins are sent between people on the network using Bitcoin Addresses and can be sent between parties only if the sender has the private key to match the public address.
The addresses are encrypted using SHA256 encryption methods which are virtually un-hackable meaning that it is almost impossible to steal coins from a known Bitcoin address.
The only way to move the Bitcoins between addresses on a network is if you hold the private key. This key enables you to move the Bitcoin between public wallet addresses.