What you must know about bitcoin
There is a massive outbreak in the number
of users in the technology and digitalization realm as people all over the
globe rely on this extensively. This transition is what has resulted in the
invention of cryptocurrency and bitcoin. The invention and existence of these two happened merely by
serendipity in 2009, by Satoshi Nakamoto who developed the bitcoin with the
motive of introducing a new electronic cash system that uses peer to peer
network to prevent double spending. It is also a decentralized digital cash
system which does not require a server as such ,but requires absolute consensus
amongst its peers, failing which the block chain of events is broken. This is
what invoked the concept of having a cryptocurrency.
A cryptocurrency is a medium of exchange
created and stored electronically in a blockchain using cryptography methods
which enables high security and privacy .It is intangible and can’t be redeemed
for other valuable assets in return. The cryptocurrency functioning solely
depends on the miners as they are the one’s who confirm the transactions and
propagate it in the network. In return they are awarded a unit of the
cryptocurrency . The fact that anyone can be a miner poses potential risks of
misusing this privilege, but this is avoided by the proof of work technique.
This is a mathematical puzzle which is solved by the miner including a lot of
hard calculations and algorithms to decipher. The miner who deciphers the
puzzle first, gains a unit of the cryptocurrency. The difficulty of this puzzle
increases the amount of computer power the whole miner’s invest and there is only a specific amount of
cryptocurrency token that can be created in a given amount of time. This is
part of the consensus which cannot be broken by any peer.
The pros of cryptocurrency are that it is irreversible,
pseudonymous, fast, secure and permission less.
Cryptocurrencies have the spotlight on them and have set a new trend in
the market globally. People are immensely fascinated and enthusiastic about it.
Bitcoin was the first decentralized
cryptocurrency that came into existence around 2008-2009 invented by Satoshi
Nakamoto. The bitcoin is used as a global means of payment and is majorly used
in the dark web and ransomware. Bitcoin has seen a drastic increase in it’s
price in the past 7 years. It’s present worth is about 650 dollars or more and
the number of users have shot up to 2,00,000 a day . The bitcoin is the leader
of the cryptocurrency world with ethereum, ripple and litecoin trailing behind.
There are many apps which act as interfaces
in buying these currency. The prominent apps being coinbase and blockchain.
These apps allow exchange of cash for a bitcoin in return. The blockchain actslike a ledger in the digital world which records every valuable transaction.
The fact that it is incorruptible, robust and transparent make it all the more
trust worthy and reliable. The blockchain comprises of various node networks
.These nodes act as voluntary administrators in order to ensure a decentralized
network. In return, they are provided with a bitcoin as remuneration for
working on solving complex math puzzles and deciphering codes.
All these factors and components are what
govern the cryptocurrency world. The
introduction of cryptocurrency has revolutionized the whole economy and its
outreach has left everyone spellbound. The value of the bitcoin cryptocurrency
reached its pinnacle in 15th December 2017 with a value of 17,900
dollars. The price has been seeing fluctuations post this phase of its highest
growth. The potential of cryptocurrency in the economy is still abundant and
plays a very pivotal role in the economy on the whole.
Comments
Post a Comment