Crypto Academy Season 3 Beginners' Course - Task 3: Bitcoin, Cryptocurrencies, Public chains @bubbling

Today, I'm starting the third assignment of the Crypto Academy Season 3 for Beginners created by professor @stream4u. I think this assignment is a continuation of the second assignment. I would like to thank all the professors for the curriculum prepared in a very organized and beautiful order.

The subject of assignment;
What Is Bitcoin and what was the aim behind Bitcoin invention? Is Cryptocurrency Good For A Business To accept As Payment? Why?

WHAT IS BITCOIN?

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Bitcoin (BTC) is a decentralized cryptocurrency as we mentioned the term of decentralization in the second assignment. It is an open code; identified by encrypted and anonymous codes. Since it uses peer-to-peer (P2P) technology, it enables all kinds of financial transactions to be recorded easily between peers in a secure environment.

On October 31, 2008, a white paper titled “Bitcoin: A Peer-to-Peer Electronic Cash Payment System” was published by a person or group using the name of Satoshi Nakamoto. This study claimed that a digital currency would come to life with an encryption system called cryptology. This cryptocurrency would work without being connected to any central system, and could not be manipulated by anyone due to the transparency of the distributed database.

On January 3, 2009, the first block on the blockchain was revealed. On February 12, 2009, the first BTC transfer was made between Satoshi Nakamoto and Hal Finney.

THE AIM BEHIND BITCOIN INVENTION

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The most important reason for the emergence of this innovation that started the digital transformation came from the idea of money that central banks cannot manage. Especially after the 2008 Mortgage Crisis, this idea accelerated and bitcoin entered our lives. We have witnessed the liberalization of controlled money to restrain greed and monopoly, and the entry of bitcoin into our lives for this reason. Satoshi Nakamoto, who thinks that central banks violate trust, emphasized that the main problem against fiat currency is trust, stating that bitcoin is the solution to divisibility, portability, and scarcity.

Based on these data, we can say that bitcoin was created in order to extract money from an authority-driven and trust-based basis. Thus, a democratic cryptocurrency was created that can be seen by everyone, where the transaction takes place directly between the parties, which can only be managed by the people involved.

IS CRYPTOCURRENCY GOOD FOR A BUSINESS TO ACCEPT AS PAYMENT?

WHY?

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Yes, it is good for a business to accept cryptocurrency as payment, because;

• There is no authority:With the money supply and constraint, governments can make financial decisions that will affect the value of money in the bank (inflation and deflation). However, banks and governments have no influence on the supply of Bitcoin. No money can be supplied to the system from outside, so inflation does not occur.

• Transactions are transparent, fast, and global: Since the first Bitcoin offering in 2009, all transactions are visible to anyone who wants to. Transactions are distributed almost instantly to the worldwide bitcoin network and are confirmed within a reasonable time.

• Transactions cannot be canceled: No authority, state, person, computer programmer, or even those who designed the system, can change or undo a transaction approved by one of the miners, accepted by the others, and written to the Blockchain.

• The system is secure: Security is achieved using 17 cryptographic digital signing methods that have been mathematically proven to be reliable. It is not possible for malicious people to manipulate data, due to the use of private/public key encryption methods. Bitcoin holders are in control of all their wealth. Their wealth is not entrusted to any bank or financial system.

• Broaden Market:Since Bitcoin is a worldwide known and used currency, it can appeal to a wide customer base. In this way, sales can increase and it creates the impression of a company that follows technology.

I learned a lot about Bitcoin while preparing the homework, I hope you also enjoyed and learned while reading it. Thank you!

Best regards,
Aslı