Recent days,we are all heard about one thing BITCOIN.
so,What is called Bitcoin?
Actually it is an cryptocurrency or digital currency created in 2009 by mysterious person using the alias Satoshi Nakamoto.It does not exist as a physical currency or coin.It's exist only in online.
Real world currency like our INR is actually managing by a central bank like Reserve Bank of India,Centralized one.In centralized banking system they generating money and distributed among peoples.
But bitcoin is decentralized,it has no central bank either it is not controlled by any country or state.It can only increased by the process called Mining.Mining is done by miners.For every bitcoin transaction,an miner solves a difficult mathematical problem to complete one transaction. So some of the bitcoin amount goes to miner as processing fee.If you have access to the internet and an computer with suitable configuration you can also done mining.And each of the bitcoin transaction is addressed by one long strings of numbers and it is stored in a public ledger called BlockChain.Bitcoin is the first digital money built in BlockChain.
BlockChain is works like torrent.Your transaction can processed on any computer in any part of the world through miners.That cannot traceable and one of the main advantage of blockchain is tamper-proof.It eliminates the major risk of centralized system vulnerability,your data cannot held by someone like banks and it has no central point failure.
But blockchain also has some disadvantages like,centralized system is more controllable than blockchain,transactions are private and most manipulative one.But blockchain makes your transaction public to everyone.Signature verification is possible but more complex to process.There is more computational process happening while an transaction compare than banking system,so blockchain transactions are comparatively slower than centralized one.And blockchain consume more power for mining and require more transaction fee for complete one transaction.
I hope you understand this terms about bitcoin,next we will meet with how bitcoin transaction occurs?.Thank you
so,What is called Bitcoin?
Actually it is an cryptocurrency or digital currency created in 2009 by mysterious person using the alias Satoshi Nakamoto.It does not exist as a physical currency or coin.It's exist only in online.
Real world currency like our INR is actually managing by a central bank like Reserve Bank of India,Centralized one.In centralized banking system they generating money and distributed among peoples.
But bitcoin is decentralized,it has no central bank either it is not controlled by any country or state.It can only increased by the process called Mining.Mining is done by miners.For every bitcoin transaction,an miner solves a difficult mathematical problem to complete one transaction. So some of the bitcoin amount goes to miner as processing fee.If you have access to the internet and an computer with suitable configuration you can also done mining.And each of the bitcoin transaction is addressed by one long strings of numbers and it is stored in a public ledger called BlockChain.Bitcoin is the first digital money built in BlockChain.
BlockChain is works like torrent.Your transaction can processed on any computer in any part of the world through miners.That cannot traceable and one of the main advantage of blockchain is tamper-proof.It eliminates the major risk of centralized system vulnerability,your data cannot held by someone like banks and it has no central point failure.
I hope you understand this terms about bitcoin,next we will meet with how bitcoin transaction occurs?.Thank you
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