Crypto Currency
Bitcoin is a system of currency transfer and verification. It uses a completely decentralized network in that it uses peer to peer (Peer to Peer) and that depends, in fact, no central authority. The Bitcoin protocol originally intended to provide an experimental alternative to electronic payment online. Its unit of account has eight decimal places and is written as a bitcoin. It works with software that allows its users to create electronic payment addresses that can send or receive bitcoins. Its code is completely open since it is Open Source, this allows a universality of the supports, but can also cause problems during the updates. However, Bitcoin is a new protocol for making online payments, But also a new store of value. It is this new protocol that makes it so interesting because it promises a lot of future innovations.An Immaterial Of Bitcoin
The Bitcoin is totally immaterial. The possession of bitcoins can only be expressed immaterially by sequences of figures and letters which are in a portfolio. Portfolios consist of addresses to receive bitcoins. Each wallet holds a certain amount of bitcoins which can be consulted by all on the block chain. On the other hand, the transmission of Bitcoin requires the private key coupled with the public key which serves as the address. Keys can be stored in any way (USB, CD, paper, header ...) because of their nature which is a sequence of numbers and letters. Many software packages with user interfaces exist for a multitude of media.Transparency and Bitcoin
The bitcoin is decentralized and its proper operation is then entrusted to all its users. It regulates itself through exchanges on market places. All exchanges are visible in the chain of blocks, so that its anonymity is relative ( anonymous ). If you have bitcoins and are linked to your public address, you are identifiable. To be the holder of Bitcoin you have to get them either by someone or by monetary creation. The monetary creation is done thanks to the mining of Bitcoin. The other way is to buy bitcoins to someone on a trading platform or in real, or else to be paid in bitcoins for a service or good.The creator of Bitcoin Satoshi Nakamoto describes in his white paper his peculiarities, which can be advantages or disadvantages. He imagines this functioning from a monetary concept of Wei Dai called B-money. He will manage to create with the Bitcoin what people have been trying to create since the 90s. This idea is conceptualized in 2008 and implemented in 2009, however, Satoshi withdraws in 2010 from the project. If you want to know more about this man whose identity remains unknown, consult our file (soon) dedicated to him.
Cryptography
To make these transactions, Bitcoin uses key pair cryptography or asymmetric cryptography. Thus all bitcoins contain the public key of its owner. For a bitcoin to be transmitted from one user to another, the first one must put the recipient's public address and sign it with its own private key. This key is hard to find and easy to prove. In order that there can be no falsification, all these operations are public, except the private keys.
How Does It Work?
P2P + Currency + Cryptography = Bitcoin
The bitcoin is an intangible currency, or crypto-currency, which allows its holder to buy goods and services on the internet. Unlike traditional currencies, the Bitcoin has no central bank or central agency. Instead, the bitcoin relies on an extensive network of over the counter internet.
The bitcoin is in a way the result of the marriage between the idea of a P2P network (over-the-counter), cryptography techniques and the concept of money. The result is that the bitcoin is perhaps in the process of creating a new, completely decentralized, totally free financial system.
How To Start With Bitcoin
To start using the Bitcoin you have to get it. You must first have a portfolio. You can do this by selecting one using our comparison of hardware or hot Bitcoin Wallets.Then you will have to get bitcoins. For this, you can check our page buy bitcoins or go directly to our home page to get more information and see the techniques of buying and earning free Bitcoins.
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