What is Bitcoin ?
Bitcoin is an advance concept which has been introduced as later as in 2008, it was introduced by a pseudonymous development, and in common words it is called peer to peer electronic cash system. Bitcoins is in fact a crytocurrency, where the creation and transfer of bitcoins is based on open source and independent of central authority
It is easily accessible to everyone. These bitcoins can be transferred through computer or smart phones. One of the more important things is that we can transfer the bitcoins without any intermediate source or some sort of financial institution.
The process of this cash transfer is secured by bitcoins miners these are the servers. This process is internet base and the servers communicate with each other and make a ledger, which is later update periodically. It was introduced in January 2009.
How Bitcoin Work ?
As for as the transaction is concerned, a user who ever wish to have the transaction he can have one or more bitcoins addresses from which bitcoins are sent or received. These bitcoins can be sent or received through a website or it can be downloaded software which is called Bitcoin client or wallet. A user can have more than one address for that purpose. A user can take an address whenever it is needed. The bitcoins services also provide joint address to hold the funds.
Bitcoins is an excellent way for the decentralization of the currency, and it has helped out to make peer to peer very easily. It has been created to provide solution for many of the conventional problems and specifically it has solved the problems of double spending.
The process of the payment includes, digitally signed transactions which are started through bitcoins mining. The owner needs to transfer bitcoins to the next person through digitally signing. The person who receives the amount has to verify each transaction to verify the chain of ownership.
Bitcoin is the first ever and the foremost cryptocurrency, for understanding of a layman it is a form of money which uses cryptography in order to control its creation and management. One of the most important aspects of it is that it does not involve any of the central authority. This is the result of the technological advancement. It is worth mentioning that all the technologies and the concepts which make up bitcoins are new. Many of the technological companies have integrated some concepts for making bitcoins.
When we go through the time line of it, it has been introduced as late as in 2008; the first company which introduced it was Satoshi Nakamoto which published a paper describing bitcoins minor feature on the web. However a year later in 2009, bitcoins network came into existence and for the first time bitcoins were issued and the first open source bitcoin client was released.
With the passage of time, this concept has been making progress and becoming more and more advance. From the start of this year it is also advancing with a satisfactory pace. In the early January Bitcoin based payment reported to be a large extent and a selling of $ 1 million in bitcoins in a single month. In the same year it was also announced that the internet achive announce that they will accept donations as bitcoins and it was also announced that employees were given option if they want to get their salaries in bitcoin currency. Same as this it has been recognizing through the time, it is now recognize by the Germany Finance Ministry as a unit of account and a financial instrument.
In conclusion, bitcoins exchange is in fact bringing digital currency to the market, which is easy accessible. In the near future it is going to make the transactions very much easy.