Bitcoin is a digital currency (aka digital currency), and it was 1st created in 2009. The people who created it are still a mystery, but it uses peer-to-peer technology, and that’s for sure. It is a unique payment method and is a new kind of money. It is open-source, and its design is public. Everyone can be a part of it, and nobody has authority over it. It is a decentralized currency that you can earn bitcoin and doesn’t have headquarter (central bank) or a single administrator.
It is a form of cryptocurrency, and there are no physical bitcoins. On the contrary, it’s balanced on a public log that everyone can access. It is known worldwide and especially in the Chinese and Japanese markets along with the other Asian countries. It was invented by a group of brilliant mathematicians who used the pseudonym SatoskiNakamoto.
How does it work?
The concept it uses is that of a blockchain (a collection of blocks), and blocks are made up of transactions. Since all the machines (mostly computers) managing the blockchain contain an identical list of transactions and can see through new blocks being filled with new bitcoin transactions, there is no scope of cheating through this system. The balance between the bitcoins is maintained by using Public and Private Keys (these are lists or series of encrypted using an algorithm). The public key is what is published for the world to see, while a private key is just like an ATM pin and used for carrying out transactions.
Another interesting term that you often hear associated with the bitcoin network is Bitcoin Mining. This is a process through which the coins are liberated in circulation. Commonly, it refers to solving a huge puzzle used to find a new block that is then added to the blockchain. A lot of different types of hardware are used to make a bitcoin, some chips like ASIC (Application Specific Integrated Circuits), GPUs (Graphics Processing Units) are certainly more effective, and these processors are called “Mining Rigs”.