Bitcoin is a type of cryptocurrency it was created in 2008 as a digital currency by an anonymous individual or group of individuals using the identity of Satoshi Nakamoto.
Although throughout the years’ many people claimed to be the creator of bitcoin the identity of the individual or persons it is still a mystery.
In contrast to the Government’s currencies, Bitcoin provides the promise to pay lower transaction costs than conventional on-line payment systems.
The currency was first used in 2009 when its implementation was published as open-source software.
Related News: Tesla invests $1.5 billion in cryptocurrency, Bitcoin leaps to record $48,000.
How Bitcoin Works?
You will be creating your first bitcoin address once you install a Bitcoin wallet on your computer or mobile phone.
You receive your first bitcoin once your address is done and you can generate more as needed.
You can give your friends your addresses so that they can pay you, or do the opposite.
Basically, this is somewhat similar to how e-mail works, but Bitcoin addresses can only be used once i.e, for one transaction.
A transaction involves the transfer of value through a blockchain to Bitcoin wallets.
Bitcoin wallets hold a hidden piece of data known as a private key or seed used to sign the transactions, offering cryptographic evidence that they came from the wallet’s owner.
The signature prohibits others from altering the transaction after it is released.
One thought on “What is bitcoin? How it works?”