What is bitcoin?

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bitcoin

Bitcoin is first of all a currency like any other, but with the main difference that it is a digital currency. This digital currency is created based on a sequence of codes known as “blockchain”, which is a cryptographic variant of computer software on which it works.

Created in 2009 by an unknown person using an alias – Satoshi Nakamoto – bitcoin allows transactions without brokers (ie without banks). It is created through an algorithmic process known as “mined” and carried out directly by computers, and although there is no need to reveal your true identity given that the transactions are anonymous, they are digitally recorded.

The technology that drives the Bitcoin system is known as a “blockchain”; Is a computer software that automatically processes transactions and creates a perfect and reliable digital record, which is a measure in the right direction to achieve more transparency.

The bitcoin as currency consists of 100 million satoshis per unit, an expression that constitutes its unit of measure, as much as the cents are to the dollar. Another important fact is that bitcoin is not an unlimited currency, since in no case will there be more than 21 million coins in circulation.

Its biggest difference compared to other currencies, is that it is a decentralized currency, so nobody controls it. Bitcoin does not have a central issuer like it happens with the currencies of the countries. Cryptocurrency is produced by people and companies from around the world devoting large amounts of resources to mining it through their own computers.

Bitcoin in addition to the above, is also characterized by:

  • It does not belong to any particular State and can be used around the world equally.
  • You can change bitcoins to any other currency and vice versa.
  • No intermediaries: Transactions are made directly from person to person.
  • It is decentralized: it is not controlled by any state, bank, financial institution or company.
  • It is impossible to falsify or duplicate it thanks to its sophisticated cryptographic system.
  • Transactions are irreversible and traceable.
  • It is not necessary to reveal your identity when doing business and preserving your privacy.
  • Money belongs to you 100%; It cannot be interfered by anyone and accounts cannot be frozen.

Thanks to a complex cryptographic system, it is possible to make sure that nobody cheats and that the currency is safe from attacks, attempts at forgery or duplication.

As for its use, in practice the different applications of bitcoin simplify the process in such a way that sending and receiving bitcoins is as easy as sending and receiving an email.

In addition Bitcoin’s protocol is completely open and transparent. Anyone can review it and make sure everything is going well. In fact, it has thus gained the confidence of millions of people around the world who use it for their business, shopping or sending money to their families.

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