What is Bitcoin

bitcoins and u s dollar bills

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What is Bitcoin?

 Bitcoin is a consolidated network that creates a new payment system and a completely digital currency. It is the first peer-to-peer payment network powered by its users with no moderate or moderate authority. From a user’s point of view, Bitcoin is almost identical to Internet money. Bitcoin can also be seen as the ultimate triple booking system available. Who created Bitcoin? Bitcoin is the first invention of the so-called “cryptocurrency” concept, first described in 1998 by Wei Dai in a list of address cypherpunks, which suggests the idea of ​​a new currency that uses cryptography to control its transactions and transactions, rather than central authority. The first specification of Bitcoin and proof of concept was published in 2009 in the address list of cryptography by Satoshi Nakamoto. Satoshi left the project in late 2010 without revealing much about himself. The community has grown tremendously with many developers working on Bitcoin. Satoshi’s anonymity often raised illegal concerns, many of which were linked to a misunderstanding of the open nature of Bitcoin. The Bitcoin protocol and software are publicly published and any developer around the world can update the code or make their own modified version of the Bitcoin software. Like current developers, Satoshi’s influence was limited to the changes he made and others accepted so he did not control Bitcoin. As such, the identity of the founder of Bitcoin probably works today as the identity of the founder of the paper. What is Bitcoin.

Basic foundations of Bitcoin or Altcoins.

 As a new user, you can start with Bitcoin without understanding the technical details. Once you have installed the Bitcoin wallet on your computer or mobile phone, it will generate your first Bitcoin address and you can create more whenever you need it. You can disclose your addresses to your friends so they can pay you or vice versa. In fact, this is similar to how email works, except that Bitcoin addresses should only be used once.

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Ratings – block chain

 A block chain is a shared public book on which the entire Bitcoin network is based. All guaranteed transactions are included in the block chain. Blockchains allows Bitcoin wallets to calculate their usable balance so that new transactions can be verified and thus verified as the real owner of the user. The integrity and timing of the block chain are enforced by cryptography.

Transactions – private keys

What is being done is the transfer of value between Bitcoin wallets that are placed in a block chain. Bitcoin wallets maintain confidential information called a secret key or seed, which is used to sign a transaction, providing statistical proof that they are from the purse holder. The signature also prevents transactions that can be changed by anyone once they have been released. Everything that is done is broadcast on the network and is usually first verified within 10-20 minutes, through a process called mining.

Processing – mines

Mining is a distributed consensus system that is used to ensure pending transactions by placing them in a block chain. It enforces chronological order in the block chain, protects network neutrality, and allows different computers to adapt to system status. To be sure, transactions must be packaged in a block equivalent to the strictest cryptographic rules that the network will verify. These rules prevent previous blocks from being converted because doing so will disable all subsequent blocks. Mining also creates a competitive lottery that prevents anyone from easily adding new blocks in a row to the block chain. This way, neither the team nor the people can control what is put in the block chain or set up other parts of the repatriation block to recoup the money they have spent.

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Bitcoin payments are irreversible.

 Bitcoin transactions are non-refundable, they can only be refunded by the recipient. This means you should be careful to do business with people and organizations that you know and trust, or have an established reputation. For themselves, businesses need to keep track of the payment requests they offer to their customers. Bitcoin can detect typing and usually does not allow you to send money to the wrong address by mistake, but it is better to have controls in place for added security and retrieval. Additional services may be available in the future to provide more choice and protection for businesses and consumers.

Bitcoin is unknown.

 It takes some effort to protect your privacy with Bitcoin. All Bitcoin transactions are kept public and permanent on the network, which means that anyone can see the balance and transactions of any Bitcoin address. However, the identity of the user behind the address remains unknown until the details are disclosed at the time of purchase or in some cases. This is one of the reasons why Bitcoin addresses are used only once. Always remember that it is your responsibility to embrace good manners in order to protect your privacy.

 Taxes and regulations.

 Bitcoin is not an official currency. That means that many authorities still require you to pay income, sales, payments and income tax on anything of value, including bitcoins. It is your responsibility to ensure that you comply with the tax and other legal or regulatory directives issued by your government and / or local municipalities.

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Choose your wallet.

 Free bitcoin wallets are available for all major apps and devices to suit your various needs. For example, you can install an app on your mobile device for daily use or you can have an online wallet on your computer. In any case, choosing a bag is easy and can be done in minutes.

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