Now, let’s dive deeper into the history of Bitcoin.
Overview of Bitcoin – A Decentralized Cryptocurrency
To begin our investigation into Bitcoin, we begin with a definition of the term currency, which is defined by:
a monetary unit of account that is typically denominated in fixed amounts; a major use of which is as a medium of exchange in transactions of economic value.
As an explanation on Bitcoin, a decentralized cryptocurrency, explains:
First, there is no one person or central authority that holds the full record of all the transactions. Instead, transactions are confirmed and stored across a secure network of computers that keeps all copies of the ledger in line. In addition, that network itself distributes the work of maintaining the network among its users. This prevents the need for any central authority and also prevents any single individual or party from manipulating the network for personal profit.
Bitcoin is the first instance of a viable, decentralized, cryptographic currency with the ability to be globalized.
Bitcoin opened the global economy for the first time. Bitcoin, being decentralized, will take the world by storm by giving everyone access to a sound economic base through the inclusion of Bitcoin.
Bitcoin is a private permission-free cryptocurrency that evolved from the backbone of the Internet. This is the first-ever private decentralized currency.
In this virtual currency, users mint coins through investing their computing power in solving cryptographic puzzles.
The native public ledger, or the block chain, facilitates the generation of Bitcoin currency.
Each puzzle contains a unique solution, code, and a timestamp. Once all the puzzle solutions have been solved, the solutions are verified and added to the block chain for all to see.
After that, the “minerв” – a term for those who invest in computers to complete puzzles is rewarded. The first time Bitcoin was mined, it was possible to earn approximately 25 BTC.
Any time someone wants to buy or sell an item, they send a digital message to the Bitcoin network. This message contains an order for the transfer of funds.
The network sets a time limit for how long it will take to reach a confirmation that the transaction went through. If the transaction takes longer than that period, the network will not allow it to be verified until the specified time.
These message and order notifications are broadcasted to listening Bitcoin nodes.