Bitcoin
Bitcoin, which became popular on the internet, was revealed in 2009 by a group of programmers disguised as Satoshi Nakamoto. The exact identity of the person or the institution that invented this crypto currency is yet to be ascertained. Bitcoin is currently very popular in economic investment. So almost all the gross investors are now coming forward to invest in this digital currency. That's why the big question in everyone's mind now is – what is Bitcoin? But before you know about Bitcoin, it is important to first know what the cryptocurrency is and how it works:
- Cryptocurrencies are mainly used as a means of digital and virtual transaction systems.
- This transaction is done through a method called cryptograph which is very safe.
Bitcoin is called a crypto currency because it is a means of transaction where it is not possible to determine who is dealing with whom. The word "crypto" means thief. That is, it can be used for secret transactions. And that's why one name is crypt currency. Bitcoin has been created based on how to make transactions while maintaining the confidentiality of transactions.
In other words, cryptocurrency is an online secure transaction system that protects us from all kinds of third means.
What is Bitcoin and how does its transaction work?
Technically speaking, Bitcoin is a kind of digital property that is a part of the cryptocurrency and the value of Bitcoin is the same all over the world. Its transaction system does not require any public or private authorities.
Its transaction system is operated through peer-to-peer system. Let's try to understand this whole system by example. Suppose you send some money from New York to California. In our general system you must seek the help of a bank but there is no need for any bank in terms of digital property as well as bitcoin transactions. Only you and the person you send money to have a wallet account here. You will also be surprised to know that some people work internally to get money from you to a particular person who is called bitcoin miner and internal system is operated through blockchain technology. It is said that good Bitcoin mining is one of the several methods of earning Bitcoin. So to put the whole thing in one word, Bitcoin is a very powerful safe digital currency. According to the latest data, 21 million bitcoins are currently in the market and miners are working hard to bring the remaining 6 million bitcoins to the market.
How is Bitcoin made?
We have understood by now that miners have a lot of role to play in the Bitcoin transaction system. Basically, there are numerous miners employed in this transaction system under the state-of-the-art safe technology of blockchain. As a result, whenever a new miner joins this particular network or block of blockchain, he becomes the owner of a small number of Bitcoins and this amount is changed every four years. Basically every block here is made up of a certain amount of Bitcoin. Interestingly, it is not as easy as you think of adding blocks. Here a new block can be connected to an algorithm called SHA256 and this complex mathematical solution requires a computer with very high capacity. As a result, whenever a new miner joins this particular network or block of blockchain, he becomes the owner of a small number of Bitcoins and this amount is changed every four years. Basically every block here is made up of a certain amount of Bitcoin. Interestingly, it is not as easy as you think of adding blocks. Here a new block can be connected to an algorithm called SHA256 and this complex mathematical solution requires a computer with very high capacity.
Bitcoin mining has become much harder now with the passage of time. In the early days of Bitcoin, a desktop computer was enough to mine a Bitcoin. But with the number of miners being very high, it is now difficult to mine bitcoin and the process of mining bitcoin is now becoming much more time consuming. Each mining consumes more electricity which is very expensive.
Success and Failure of Bitcoin:
Success:
Quick payments, low fees:
In the case of traditional banking practices, it takes a lot of time for currency transactions, especially for money to reach from one person to another. Bitcoin makes transactions significantly faster because it does not involve third parties. Even in many cases the bitcoin transaction fee is lower than the bank's transaction fee.
Read More: Doraemon - The reason of Doraemon creation