Should we talk about Bitcoin today?
Let me dive deeper into the crypto and blockchain tree's roots - Bitcoin.
If cryptocurrencies and blockchain applications are the branches and fruits of this industry tree, Bitcoin is the trunk. While previous attempts at digital currencies were made, Bitcoin is the first successful cryptocurrency that has achieved remarkable success and popularity. Tens of thousands of digital assets exist in the market today, but Bitcoin continues to dominate the crypto market.
We will go over Bitcoin's fundamentals and features in the following lessons to better understand its value as a digital asset.
• What is Bitcoin?
• What is the origin of Bitcoin?
• What are the unique features of Bitcoin?
What is Bitcoin?
Bitcoin is a type of digital currency that allows you to buy, sell, or exchange it without the use of intermediaries such as banks or other financial institutions.
Bitcoin, the most popular cryptocurrency, was the first to use blockchain technology in real time. It paved the way for all subsequent alternative coins, also known as altcoins. Bitcoin is also known as digital currency because it exists solely on the internet.
Bitcoin transactions are recorded and stored on a decentralized public ledger.
In other words, the Bitcoin blockchain nodes (participants) manage and operate the ledger and network. Because the Bitcoin network has no gatekeepers, anyone from anywhere in the world can join the blockchain without seeking permission.
The cryptographic methods used to create this digital currency make it impossible to double-spend Bitcoin. To put it another way, one Bitcoin can never be spent twice.
Origin of Bitcoin
Following the 2008 global financial crisis, an anonymous individual or institution published a white paper titled Bitcoin: A Peer-to-Peer Electronic Cash System. It was released on October 31, 2008, under the pen name "Satoshi Nakamoto."
Open-source software for developing Bitcoin was released in early 2009. Because it is a permissionless network, anyone can join and contribute to the software's development. The first transaction was made in January 2009 between Nakamoto and an early Bitcoin adopter.
The primary goal of Bitcoin is to enable peer-to-peer or person-to-person global payment without relying on any third-party institution such as banks or brokerages.
Bitcoin, according to the original white paper, is a method of sending money from one party to another without using a financial institution. Bitcoin had no value when it was first introduced in 2009. Bitcoin's value has skyrocketed in the decade since its inception.
Bitcoin has a finite or limited supply, according to the source code used to create it. Bitcoin's total supply is limited to 21 million coins. The supply is expected to reach its limit by the year 2140.
Unique features of Bitcoin?
Bitcoin, the world's largest cryptocurrency by market capitalization, has distinct architectural features.
However, centralized exchanges that provide services to buy and sell digital currencies must adhere to regulatory requirements such as KYC and AML. Legal compliance adds an extra layer of protection against bad actors.
Transactions in Bitcoin are irreversible. In other words, once you send a Bitcoin to someone, you cannot reverse the transaction.
Bitcoin transactions are near-instant and take only a few minutes to complete, regardless of geographical location or time.
Today I covered the basics of what Bitcoin is. In our upcoming days, I decode this cryptocurrency into further detail.
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