Bitcoin

Bitcoin-BTC P2P Money

Bitcoin (BTC) is a decentralized digital or virtual currency that is not controlled by any central bank or government; it operates on a technology called blockchainand was created in 2009 by an anonymous individual (or group) named "Satoshi Nakamoto" , allowing transactions to take place directly between individuals over a computer network and is used as an investment and currency, with new coins created through the process of "mining".

Key Features:


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  • 1. Decentralized: It has no owner, it is not under the control of any bank or government, but is operated by a huge computer network.
  • 2. Digital & Virtual: It does not have physical coins or notes; it exists entirely as electronic data.
  • 3. Blockchain: All transactions are recorded in a public ledger (blockchain), ensuring transparency and security.
  • 4. Cryptography: Cryptographic techniques are used to secure transactions and create new bitcoins.
  • 5. Mining: New bitcoins are created and verified by solving complex mathematical problems by powerful computers.
  • 6. Limited Supply: Only 21 million bitcoins can be created, making them rare and valuable.
  • 7. Anonymity: Transactions can be conducted anonymously, as users' identities are not directly linked to their addresses.

    • How it Works:


    Wallet: Your bitcoins are stored in a digital wallet, like a bank account, but it's completely digital.

    Transaction: When you send Bitcoin to someone, it gets broadcast on the network.

    Private Key: This transaction is signed with your wallet's 'private key', which proves it was sent by the owner and cannot be changed.

    Mining: 'Miners' (computer networks) collect these transactions to form 'blocks' and solve complex mathematical problems.

    Blockchain: The first miner who solves the problem gets the right to add the block to the blockchain (the public record of all transactions) and receives a reward (new bitcoins).

    Decentralization: All this work is done by computers (nodes) spread across the network, rather than by a single central authority (bank), which keeps it secure and transparent.