Every day you hear or read the word «Bitcoin», you don’t know what it is, what is a cryptocurrency, its purpose, why it is so popular, or you don’t know how to use it. You are not the first person to happen, and you will not be the last.
For many people, talking about or learning to use Bitcoin is a headache because they think Bitcoin is a complicated or insecure system. None of it is true. On the contrary, although it may seem difficult, you have to learn some knowledge before you can start the transfer, and it is usually a safe payment mechanism. Before explaining in detail how Bitcoin works, the first thing to do is to talk about its meaning and basic concepts.
Bitcoin is a digital currency and system. Its abbreviation is BTC.
It needs to be clarified that although the platform itself is written in uppercase B, the word «bitcoin» represents the unit of the currency in lowercase. As a currency, Bitcoin can be used for the same purposes as any other currency, buying, selling, etc. But unlike traditional currencies, it does not rely on the central bank or any government entity to support it, let alone issue it. It operates entirely under the digital platform created by Satoshi Nakamoto, and we will save you this time before you go to Google to find out who he is.
Although there are many speculations about his identity and some people claim to be the creator of Bitcoin, no one knows for sure the real person behind this cryptocurrency.
Therefore, it can be said that Satoshi Nakamoto
is just a pseudonym of a person or a group of people. In October 2008, they released a «white paper» on the peer-to-peer electronic cash system on the Internet, officially called the white paper. A few months later, in January 2009, the first software was released. This is how Bitcoin does not belong to any government or country, and because its inventor is anonymous and established as a free license system, it is not owned by any private company or individual. How to maintain? Well, it is maintained by the users themselves. It’s digital Unlike the U.S. dollar, yen, euro or any regional currency, Bitcoin does not exist in physical form. It is completely digital and can work through blockchain or blockchain. Thanks to its effective verification mechanism or consensus among the parties involved in the transaction, it cannot be spent more than once.
Each bitcoin is unique in whole or in part.
Every transaction enters a public record on the blockchain, which acts as a digital ledger, and anyone can verify whether funds actually exist and whether funds are transferred from one direction to another. Users can manage their bitcoins in digital wallets. These tasks are accomplished through public keys (equivalent to bank account numbers) and private keys (ie passwords). Thanks to them, you can make financial transfers from anywhere on the planet anytime, anywhere. In addition, it can be exchanged for local currency with the help of LocalBitcoins or other exchanges that exist in many countries. Best of all, users will not be restricted by the controls usually established by traditional banks (sometimes frozen accounts), nor will they be affected by the excessive commissions they usually charge. On the other hand, Bitcoin was created to charge little or no commission.
How does this work After getting the proper notification.
the first thing to do is to choose a wallet (also called a wallet, wallet, or wallet) through which you can manage your funds. However, it should be clarified that this is not a place to store money. The coin is registered in the blockchain. The wallet has the function of managing the public key and the private key used to perform sending or receiving transactions. These wallets are divided into three categories. Hardware wallets, used to store private keys in independent systems outside the Internet (such as Ledger or Trezor); software wallets that can be installed on computers or mobile devices to store and encrypt passwords (such as Electrum, Bitpay, Green or Coinomi); and online wallets (such as Bitgo and Blockchain). It is recommended that new users use software, which, in addition to providing complete security, usually does not charge.