I was randomly going through some newsletters and saw this term ‘Bitcoins’. I felt it as a pretty interesting topic and started diving into some sources where I could get some idea about it. We have heard about coins but what does the ‘bit’ signify. Yeah, that is exactly what defines it, Bitcoin is a cryptocurrency which is made digitally in binary format. It is a digital asset which works as a medium of exchange using cryptography to secure transactions.
As per the sources, back in 2009, an anonymous programmer Santhoshi Nakamoto has discovered bitcoins which brought a revolution in the digital community. The first documentation on bitcoins is the research paper published by Santhoshi Nakamoto on 31st October 2008,”Bitcoin:A peer to peer electronic cash system”.
Bitcoin is the first decentralized cryptocurrency. This can be used in any country and there are no limits on the usage. Developed using software programs that follow mathematical formulas and implemented as an open source code, bitcoins provides access to users to review the code and understand the workflow. This can be stored in digital wallets in our computers or mobiles.
The Bitcoin network is secured by computers called miners which verify transactions. After the verification, the records are kept in a transparent public ledger which is called blockchains (record of past transactions). This network is unhackable and is secured by cryptographic techniques.
This discovery created a growing impact in the lives of citizens. A recent survey shows that about 45 % of people in the USA are comfortable of using an independent currency like bitcoin. This has a reason, there are no middlemen in the whole transaction process and the loss of money through exchanges can be saved. Even the services like Reddit and WordPress has started accepting bitcoins as a payment currency now. Bitcoiners are working to make it much easier to use the currency, building everything from point-of-service machines to PayPal alternatives.