The crypto-currencies are highly valued by companies and individuals as they can be a very good alternative to fiat money. The use of cryptocurrency can however be very complicated for novices. Therefore, it is strongly advised to know all the information about the cryptocurrency in which you want to invest and especially understand how it works.
Bitcoin is the first cryptocurrency. It makes it possible to carry out various operations and offers a lot of advantages but also significant disadvantages. You can know, through this guide, what Bitcoin is exactly and what its functions are.
What is a cryptocurrency?
The cryptocurrency (or crypto-currency) is a virtual currency that cannot be used in a physical way. Virtual currency is therefore a digital currency which is internet based and which may very well be an alternative to fiat money. Digital coins therefore do not really exist on the market but in computer form.
When you use cryptocurrency, your money is not managed by any central entity like the bank or the government. This is explained by the fact that almost all cryptocurrencies are decentralized. The decentralization of cryptocurrencies is a plus for all users who are the only controllers of their account unlike the bank.
Cryptocurrencies are based on cryptographic technology that makes different transactions possible. By using blockchain, virtual currencies can develop optimally and can make the speed and security of transfers possible. https://bitcoinslifestyle.com provides the all transaction regarding bitcoin.
The most used cryptocurrency today is Bitcoin. This is why we are going to dedicate the rest of this text to this revolutionary currency which can be used worldwide.
Presentation and operation of Bitcoin cryptocurrency (BTC)
The Bitcoin cryptocurrency (BTC) was implemented by an unknown person under the pseudonym Satoshi Nakamo in 2009. It is a new generation electronic money which allows its users to carry out peer to peer transactions and without any intermediary.
Bitcoin (BTC) is completely decentralized and its network is not managed by any central body such as the government or the bank. Bitcoin is used on a computer network that requires an internet connection.
Bitcoin cryptocurrency is also based on blockchain technology so that transactions made by users can pass instantly.
The main purpose of Bitcoin cryptocurrency (BCT) is to allow everyone to send and receive money from a third party without going through intermediaries. Bitcoin (BCT) also allows you to make various payments for purchases of goods and services online. This virtual currency therefore helps not only individuals but also traders in their work.
The Bitcoin cryptocurrency (BCT) was financed thanks to an ICO (Initial Coin Offering) which allowed it to position itself among the Top 3 and attract many users.
Bitcoin cryptocurrency blockchain
The Bitcoin cryptocurrency (BTC) is, as we saw above, a decentralized currency which has a database not managed by any financial entity. This database is shared on a peer-to-peer network and is open source. This explains the fact that all Bitcoin (BTC) users can receive a copy of the database and all the information regarding the transactions that are carried out on the platform. All users can also register transactions at any time and from anywhere in the world in this network with several nodes.
Blockchain operation is quite complicated but we will explain it to you in a simple way. When a transaction is registered on the network,all the nodes of the network communicate with each other to make possible the passage of information. This step is done instantly.
Bitcoin (BTC) has implemented two technologies that are specialized to avoid as much as possible fraudulent actions like piracy or counterfeits in transactions. The first technology is the electric signature. It allows the identification of users by means of a signature in the transaction files. The second technology is based on asymmetric cryptography.
When you make transactions, all copies of the database synchronize and each of the nodes in this database records the transfer. A list is put on hold and then shared. Every 10 minutes, one of the different nodes on the network validates the pending transactions. This then gives a chain of blocks, hence the name of blockchain technology.
All user information stored in the Blockchain goes through a block check. With the use of cryptography, these blocks form a very secure and reliable chain. It is, therefore, a database where you can find all your transactions since the opening of your account.
Blockchain is therefore a revolutionary technology, very studied and also a system allowing to store and transmit information without organs taking control.