About Bitcoin

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What is Bitcoin?

Bitcoin is a partnership network that offers a new payment system and completely digital money. It is the first payment system decentralized peer-to-peer supported by its users without a central authority or intermediaries. From a user perspective, Bitcoin is mostly cash for the Internet. Bitcoin can also be seen as the most prominent triple entry accounting system in place.

Who created Bitcoin?

Bitcoin is the first implementation of a concept called "crypto-currency" which was first announced in 1998 by Wei Dai cypherpunks mail list and suggested a new form of money that uses cryptography to control their issuance and transactions as opposed to relying on a central authority. The first specifications and concept validation in 2009 were published in a cryptography mailing list dedicated to Satoshi Nakamoto by. Satoshi left the project at the end of 2010 without saying so many things about himself. Since then, the community has grown exponentially, with many programmers working on Bitcoin.

Satoshi's anonymity often raised undue concerns, many of them related to open source nature of Bitcoin misunderstanding. Bitcoin protocol and software are freely published and any programmer in the world can see the code or do their own modified version of the software Bitcoin. Like actual programmers, Satoshi's influence was limited by the fact that the changes made to it must be adopted by others and because of that he had no control over Bitcoin. As such, the identity of the inventor Bitcoin is probably as relevant today as the identity of the person who invented the paper.

Who controls the Bitcoin network?

Nobody controls the Bitcoin network as nobody owns the technology behind email. Bitcoin is controlled by all Bitcoin users worldwide. While programmers improve software, they can not force a change in the Bitcoin protocol for all users are free to choose which software and which version to use. To remain compatible with each other, all users must use software that follows the same rules. Bitcoin can work properly only when there is consensus among all users. So, all users and programmers have a strong motivation to protect this consensus.

How does Bitcoin?

From the perspective of an ordinary user, Bitcoin is nothing more than an application on the phone or a computer program that provides personal Bitcoin wallet and allows a user to send and receive Bitcoin through. This is how Bitcoin works for most users.

Backstage, Bitcoin network distributes a public register called the "chain blocks". This register contains every transaction ever processed, allowing a user's computer to verify the validity of each transaction. The authenticity of each transaction is protected by digital signatures that correspond to the addresses where they were sent bitcoinii, allowing all users to have control over sending personal Bitcoin Bitcoin of theirs. Additionally, anyone can process transactions using the computational power of specialized hardware and be rewarded with Bitcoin for this service. This is often called "mined". To learn more about Bitcoin, you can see the page dedicated and original work.

Use the Bitcoin world?

Yes. It is used by a growing number of businesses and individuals. These include physical business, such as restaurants, law firms, fitness and popular online services such as NameCheap, WordPress, Reddit and Flattr. While Bitcoin is still a relatively new phenomenon, it is growing rapidly. In March 2014 all Bitcoin been stabilized in circulation exceeded EUR 8 billion in new readout and Bitcoin million dollars being changed daily.



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