Bitcoin- What Is Bitcoin, and How Does It Work?

econkhan (25)in #bitcoin • 7 years ago

Hello Everyone!!

Bitcoin, a concept called "cryptococcerny", was first implemented in 1998 by a person called Wei Dai who uses cryptography in the cypherpunks mailing list to create a new concept that is used for the construction and trading of transactions. In 2009, Satoshi Nakamoto was published in a cryptographical mailing list of a Japanese man by proving the first bitcane specification and concepts of central authority. At the end of Satoshi 2010, leaving the project and disappearing with many mysteries.

Bitcoin. the digital currency, has been all over the news for years. But because it’s entirely digital and doesn’t necessarily correspond to any existing fiat currency,If you find the concept of Bitcoin confusing, you are not alone . Let’s break down the basis of exactly what Bitcoin is, how it works, and its possible future in the global economy.
Currently, the average price of one Bitcoin is about $7,564, according to Blockchain.info, a news and data site.

How Bitcoin Works
In layman’s terms: Bitcoin is a digital currency. That’s a concept that might be more complex than you realize: it isn’t simply an assigned value of money stored in a digital account, like your bank account or credit line. Bitcoin has no corresponding physical element, like coins or paper bills (despite the popular image of an actual coin, above, to illustrate it). The value and verification of individual Bitcoins are provided by a global peer-to-peer network.
A Bitcoin is a digital token — with no physical backing — that can be sent electronically from one user to another, anywhere in the world. A Bitcoin can be divided out to eight decimal places, so you can send someone 0.00000001 Bitcoins. This smallest fraction of a Bitcoin — the penny of the Bitcoin world — is referred to as a Satoshi, after the anonymous creator of Bitcoin.

The advanced explanation: Imagine it as BitTorrent, the peer-to-peer network that you definitely didn’t use to download thousands of songs in the early 2000s. Except instead of moving files from one place to another, the Bitcoin network generates and verifies blocks of information that are expressed in the form of a proprietary currency.

Bitcoin and its many derivatives are known as cryptocurrencies. The system uses cryptography—extremely advanced cryptography called a blockchain—to generate new “coins” and verify the ones that are transferred from one user to another. The cryptographic sequences serve several purposes: making the transactions virtually impossible to fake, making “banks” or “wallets” of coins easily transferable as data, and authenticating the transfer of Bitcoin value from one person to another.