What is Bitcoin?

Bitcoin is a cryptocurrency, created by its pseudonymous developer Satoshi Nakamoto (Who is Satoshi Nakamoto?). It is a form of digital currency which is decentralised and enables instant payments to anyone across the globe. The primary objective behind the development of Bitcoin was to encourage cross-country payment system without the control of any government organisation.

Properties of Bitcoin include its decentralised architecture, a complete peer-to-peer network which supports different levels of securities to keep the entire system tamper-proof with no interference of any central authority. It is based on Blockchain technology (What is Blockchain Technology?). Blockchain is a list of records called blocks and is ever growing. Each block is linked to the other block using cryptography.

As mentioned earlier, one of the most important features of Bitcoin is its transaction can be carried out without any dependency on any government, banks or person (How do Bitcoin transaction works?). Bitcoins can be used as a medium of exchange, using cryptography to secure the financial transaction. No third party or trust secures the transaction, but by pure mathematical calculations making it more secure and irreversible.

Bitcoin transaction is fast and global. It generally takes few minutes to complete a transaction irrespective of any global location. For example, you can transfer Bitcoin from the USA to practically anyone across the globe almost instantly without worrying about the time zone differences.

Bitcoin is the king of all cryptocurrencies. It is by far the most stable cryptocurrency compared to other Alt Coins (What are Altcoins?). It is attracting new investors day by day adding to the pool of investors. The scope in the coming years is enormous.

Previous articleWhat is Blockchain?
Next articleHow does Ethereum Work

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