March 28th, 2018
The recent trend in the push for digital currency has created a worldwide buzz. People from all around the globe are starting to notice that Bitcoin, the latest digital currency is changing the global financial market. Currently many goods and services both on and offline, can be bought with Bitcoin
In 2008, a programmer named Satoshi Nakamoto, released an article about Bitcoin and it’s overall design. Later, in 2009, this software was released and can now be used to exchange, buy, and sell Bitcoins. Bitcoin and it’s blockchain, is a maintained by an open-source community. This decentralized form of currency attracts people from all corners of the world who are looking for a new, independent way to spend and invest their money.
Satoshi Nakamoto created Bitcoin so that people could exchange money electronically, safely, and securely; without needing to involve a third party entity, such as banks or financial institutes. Bitcoin is based on a cryptographic ledger that allows users to be 100% sure that their money (either being sent or received) is always authentic.
Once the Bitcoin software has been downloaded it connect to an internet network where all Bitcoin users can generate a pair of mathematically linked keys. This helps users to buy, sell or exchange Bitcoins. One key is kept private and hidden on your system or digital wallet and the other key is like a public “ address” that you give others in order to receive or send Bitcoins.
When a Bitcoin transaction takes place, Bitcoin software carries out the mathematical operation which combines the other public key with user’s private key. Once an amount is agreed upon or exchanged the result of this equation is then sent out across the public ledger so that the transaction can be verified by “miners” who are usually not involved in the actual transaction taking place.
There are two main checks made for each transaction. One uses the public key to confirm that the owner of the key sent the money and the second refers to the transaction log stored Blockchain, so that every Bitcoin user can see every confirmed transaction made in Bitcoin history.
Once the client verified this transaction, the details are then forwarded to other miners in the Bitcoin network for a “double check”. This is how a Bitcoin transaction takes place and is verified by the miner/ Miners try to add a new transfer to the distributed public ledger (Blockchain) by solving complex math equations in the puzzle. When one of them wins, the log is updated and passed along the Bitcoin network. When the software receives this log, it knows that the transaction has been successful.
Bitcoin transactions are highly secure, it’s practically impossible to create or generate a false transaction or to spend Bitcoin you don’t own. On top of that, the public ledger of transactions provides a natural deterrent against money laundering. Every single Bitcoin transaction ever made can be traced through the blockchain.
There are currently many online exchanges as well as Bitcoin ATMs for people to trade Bitcoins using any traditional currency of choice. Many major businesses and online websites have started to accept Bitcoin as a form of payment. Bitcoin miners are able to generate more Bitcoins by solving complex mathematical problems. Over the past few years, many more sophisticated devices are being created for mining Bitcoins.
With so many businesses beginning to accept Bitcoin, it’s only a matter of time until more and maybe all businesses accept Bitcoin as payment. You can use this digital currency to buy plane tickets, food, pay bills and more just like you would with any other currency.
It is to early to assume that Bitcoin might threaten traditional currencies. As it it still in its early stage, there’s no telling. This digital currency has been successful in grabbing the attention of people from all parts of the world, but there are still place and people that know very little about Bitcoin.