What Is Bitcoin and How Does it Work?
Bitcoin is an innovative technology that introduces a new monetary system[1], based on a peer-to-peer network of users’ nodes (computers) with no intermediaries like central banks or any type of financial institution.
For the first time in history, anyone can participate in an open network and contribute to empowering it, with no background distinction or permission required by any authority or organization.
What Is Bitcoin?
Bitcoin is a fast-growing evolution of money, an investment, a way out of the current unsound economic system, and a new programmable payment method. Various concepts and disciplines could be approached to fully understand Bitcoin because it can be of different utility to different people.
The various avenues will be revealed when going down the Bitcoin rabbit hole, and the journey will be captivating. With this article, you can start learning about Bitcoin’s purpose, who creates the coins, and if it is real money, including more practical advice about buying bitcoin and how to keep your coins safe.
Bitcoin is an electronic peer-to-peer cash system based on a distributed digital ledger called a blockchain[2] or timechain. The ledger includes transactions approved by the peer-to-peer network instead of a central authority. Bitcoin (with an uppercase letter B) refers to the protocol, software, and network, while bitcoin (with a lowercase b) describes the native monetary asset.
Unveiled by a mysterious person or a group known as Satoshi Nakamoto[3], Bitcoin is the first cryptocurrency ever created and was described in detail in the white paper[4] published on October 28, 2008. A digital version of cash, which in its physical form is inherently peer-to-peer, was the hardest thing to build, and the genius of Satoshi was to
