Bitcoin which is a form of digital payment currency utilizes cryptocurrency and person-to-person (P2P) technology to create and manage the monetary transactions as opposed to any central authority. The open source P2P network of Bitcoin creates all the bitcoins and manages all its transactions.
It is often referred to as “cash of the Internet,” Bitcoin is one such several and popular digital payment currency along with the Litecoin, Namecoin, and Peercoin. When the word Bitcoin is capitalized with B it usually refers to like the software and systems used for the bitcoin and in lowercase, it means the cryptocurrency.
History of Bitcoin:
Bitcoin which is considered as the biggest cryptocurrency was first introduced in 2009 and is the most widely-traded and used cryptocurrency. Bitcoin was actually an implementation of the cryptocurrency concept which was described by Wei Dai in the year 1998 on the cypherpunks list. Dai has suggested a new form of money which uses cryptography to control the creation and transactions, rather than a central entity. In 2009, the specification and the proof of concept of Bitcoin were published in a cryptography mailing list by the pseudonym Satoshi Nakamoto. As observed in the official Bitcoin list, Satoshi Nakamoto left the project in late 2010 without revealing much information about him.
How does it work?
The Payments using Bitcoins can be made via the Bitcoin wallet application which resides on the user’s computer or their mobile devices, and the user only needs to enter the recipient’s Bitcoin address information and the payment amount before entering the send option to complete the payment.
The new bitcoins are actually created by a competitive and decentralized process or method
called “mining”. The Bitcoin miners are process the transactions and secure the network using a specialized hardware and then collect new bitcoins in exchange to it. The Bitcoin protocol sees to that the new bitcoins are created at a fixed rate and also makes the process of bitcoin mining a competitive business.
Efforts are being put to improve the Bitcoin mining and are now under way; they are working under the basic assumptions that the cheaper they can mine Bitcoins, the more the money they can make.
Most of the attackers are going behind the Bitcoin-related sites; there is actually an important distinction between the securities of the Bitcoin network and Bitcoin exchanges. According to a news portal, none can ever found a critical vulnerability within the Bitcoin protocol that would allow its user within the Bitcoin network to fraudulently create the coins or forge the transactions. Being said, there have been many compromises from various Bitcoin exchanges throughout the cryptocurrency’s lifetime. As the value of the Bitcoin increases, so does the risk in using the exchanges also increases.
Today, we have 2000+ cryptocurrencies, the top 33 cryptocurrencies are discussed in the following infographic titled – 33 cryptocurrencies described in four words or less. This was created by Mrbtc.org team, check out the infographic and let us know the feedback.