Bitcoin is a digital currency which operates free of any central control or the oversight of banks of government . Instead it reliefs on peer-to-peer software and cryptography .
A public ledger records all bitcoin transactions and copies are held on serves around the world .Anyone with a spare computer can set up one of these serves, known as a node . consensus on who owns which coins is reached cryptographically across these nodes rather than relying on a central source of trust like a bank .
Every transaction is publicly board cast to the network and shared from node to node . Every ten minutes or so these transactions are collection together by miners into a group called a block and added permanently to the blockchain . this is the definitive account book of bitcoin.
In much the save way you would keep traditional coins in a physical wallet, virtual currencies are el in digit wallets and can can be a range accessed from client hardware tools.
Bitcoin can currently be subdivided by seven decimal places : a thousand of a bitcoin is known as a mini and a hundred millionth of a bitcoin is known as a Santoshi.
In truth there is no such things as a bitcoin or a wallet , just agreement among the network about ownership of a coin. A private key is used to prove ownership of funds to the network when making a transaction .A person could simply learn their private key and need nothing else to retrieve or spend their virtual cash , a concept which is known as a "brain wallet"
Can Bitcoin be converted to cash?
bitcoin can be exchanged for cash just like any asset . There are numerous . Cryptocurrency exchange online where people can do this but transaction can also be carried out in person or over any communication platform , allowing even small business to accept bitcoin . There is no official mechanism built into bitcoin to convert to another currency.
Nothing inherently valuable underpins the bitcoin network. but this is true for may of the world's most stable national currencies since leaving the gold standard such as the US dollar and UK pound.
What is the use of bitcoin?
Bitcoin was created as a way for people to send money over the internet. The digital currency was inteded to provide an alternative payment system that would operate free of central control but otherwise be used just like traditional currencies.
Who invented bitcoin?
In 2018 the domain name .org was bought and an academic white paper titled . Bitcoin: a peer to peer Electronic cash system was uploaded. It set out the theory and design of a system for a digital currency free of control from any Organization or government .
The author, going by the name SANTOSHI NAKAMOTO, wrote ; "the root problem with conventional currencies is all the trust that's required to make it work . The central, bank must be trusted not to debase the currency , but the history of fiat currencies is full of breaches of that trust ."
The following year the software described in the paper was finished and released publicly , launching the bitcoin network on 9 January 2009 .
Nakamoto continue working on the project with various developers until 2010 when he or she withdraw from the project and left it to its own devices .The real identity of Nakamoto has never been revealed and they have not made any public statement in years.
Now the software is open source , meaning that anyone can view or contribute to the code for free . Many companies and organizations work to improve the software , including MIT.
NAKAMOTO.
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