Today the Article is going through some key points and brief
explanation on Bitcoin. Hope it is helpful.
What is Bitcoin and Its History
Bitcoin is a digital currency which designed to clear away
with all the problems we have paying for things online. you may think that the
system we have is pretty good and safe, but everything we buy today has to go
through a Bank or Credit card company who take a cut of the transaction
and who rely on our trust that they'll do everything right. After a while those
payments start to build up and you have to trust your card company to keep your
details safe. many people have tried to work out how to have a payment system
without that middleman or broker. but then there's another problem comes up. How
do you prove that you've paid for something or even that you have that money in
your bank or card at all without someone vouching for you. In 2008 a solution
was offered by an anonymous programmer going by the name of Satoshi Nakamoto.
He left a paper on a popular cryptography blog which proposed a system of
currency that solved all of these complicated problems. His proposal was that
instead of a bank or credit card company recording every transaction in one
central ledger, all of the users would record all of the transactions at the
same time. as a result, any attempt to fool the community would be noticed and
the payment would be rejected. Not any user, government or bank can force a fee
on a payment or control its flow. the result is a cheaper quicker and easier
way to spend money even across national borders.
What Would Bitcoin do
so, this is Bitcoin and it's already starting to have an
impact on people's lives. within several months, it was being used to buy and
sell goods although not always from the most popular of traders but it's was
gradually upcoming and in 2023 the bitcoin and other crypto accepted merchants
are widely available in the world. as you might have heard there are problems,
while some are profiting from getting involved early others are losing out from
this volatile and young market. And people are founding companies to buy up
lots of bitcoins but as it's designed to have a limited amount ever in
circulation that might cause problems down the road. there's so much
uncertainty around bitcoin. some people genuinely think this is the future, others
are terrified it could destroy our economy. but many from both sides agree that
if we could get bitcoin to work or something like it, if we can trust a digital
currency to work without the middlemen. Then the way the world economy
functions could be transformed for the better.
How does this Bitcoin work
how will someone send me value or bitcoins? For that we will
have to give each person a unique identifier, or address to keep track of which
address or person holds which value. These addresses are known as wallets. It
would record ledger which address or wallet holds which amount of value. So in
Bitcoin or Crypto world this ledger is called on the blockchain, and it keeps
all of the transactions from the beginning of time. I mentioned earlier that
any attempt to fool the community would be noticed and the payment would be
rejected. So how can we ensure that no one cheats and says that their address
has more value than what they actually own? This ledger is shared around to
tens of thousands of people, so whenever someone wants to transfer some of his
value in order to get something we can check to see if his story adds up to
what everyone else think. He's good for his value. We will let him spend it.
Then for these so called legers has to be kept eye on and updated regularly as I
mentioned earlier. That’s why “Miners” are existed. They verify all of these transactions.
Miners are being rewarded for their valuable job Tens of thousands of people
who get paid in bitcoins for going through the ledger making sure that
everything is order and that no one is cheating including themselves.
Conclusion
Bitcoin just invented a modern solution for money, and
that's exactly what Bitcoin is. A digital decentralized currency. This is a
very brief and limited narrowed down explanation on Bitcoin and there are lots
of information and thorough topics out there. Be sure to research more if you
are interested in Crypto. And always remember to get best guidance and knowledge
before you jump in this Crypto or Invest in it.
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