Bitcoin is the first and best known cryptocurrency, the key symbol of the digital world, and the form of payment of the same name that circulates within the system.
Bitcoin has created a furor in the economy. This digital asset comes with a limited supply, its algorithm is designed so that a maximum of 21 million units can exist in the system, each of which is also called a "bitcoin".
The issuance schedule is software-defined and known in advance. Once the last coins have been generated, there will be no change in their number. The Bitcoin economy is built on a deflationary model, which many economists fear. But they find no practical justification. In fact, such a relatively small number of coins is quite sufficient for day-to-day calculations, as 1 bitcoin is divided into 100,000,000 pieces, which are called "satoshi" (after the creator of the system).
The bitcoin issuance schedule itself began with a document published on 31 October 2008 by a mysterious individual working under the pseudonym Satoshi Nakamoto. Who the real developer is is still unknown, despite numerous investigations by journalists. On 3 January 2009, the concept was put into practice in software code.
Distinctive features of bitcoin
- Accessibility and decentralization. The Bitcoin network is a combination of all client programs and a distributed blockchain database that is stored on every computer where a full client is installed. The blockchain is a fully open-access register of all transactions in the system.
- Transparency of settlement. The history of any payment can be traced back to the very moment of coin generation, it will never be deleted from the database. Knowing only the Bitcoin address, it is possible to know at any time all transactions accepted by or sent from that address.
- Free choice of involvement in participation. You can install an official Bitcoin Core client, which stores all transaction history. If you don't need offline operation and blockchain analysis, you can install one of the lightweight or mobile wallets, which require significantly fewer resources.
- Lack of control. Blockchain is a distributed base based on peer-to-peer nodes, so Bitcoin has no control centre that can freeze an account, change the number of units in the system, or block or cancel a payment.
- Anonymous settlement. Bitcoin provides a convenient and, if desired, anonymous means of settlement; the address and account number in the system are not linked to the account holder, and no documentation is required to open an account.
- Reward for supporting the network. New bitcoins come into circulation as a reward for those who perform the computational operations that enable the transfer of transactions. The computations are called "mining". Those who carry out these computations are called "miners". Their job is to record in one block all the transactions that have occurred on the network since the previous one was issued, and to "seal" it with a complex cryptographic signature.
- An impeccable defence. With each new block, the processing power required for miners to calculate the entire chain from scratch grows, and the longer the chain, the harder it is to "hack" the network.
Today, Bitcoin is the most advanced digital currency, and it's perfect for online payments. More and more shops are accepting Bitcoin as a payment option. The ease and simplicity of opening a Bitcoin account is attracting more and more people from developing countries to this digital currency.
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