In fact the answer to the question “What is bitcoin?” It is not as complicated as it appears, but it is often superficial or technical, which causes the questioner to be in a form of confusion or a complete and complete lack of understanding of this technological revolution. And the multiplicity and difference of answers is considered normal due to the difference in people and the difference in their angle of view on bitcoin! There are those who see it as just a currency, and there are those who see it as an alternative global financial system, while some consider it a revolutionary technology that has radically transformed the Internet, by moving it from just a way to communicate and exchange information and electronic messages, to a way to exchange value as well…!
Bitcoin was invented by a person, or group of people, and (they) called themselves “Satoshi Nakamoto” in 2009, one year after the global financial crisis. It is an online payment system only between two customers without the need of a third party, “a banking institution, for example.”
The anonymity of the Bitcoin inventor was a good choice, regardless of the reasons behind this choice. Because this contributed to the decentralization of bitcoin, and the feeling of the bitcoin community that this technology belongs to everyone, which encouraged the demand for it by users and programmers, and work to develop it, in addition to getting rid of the “conspiracy theory” that would have been caused by the religion or ethnic origins of the inventor! This helped accelerate the pace of technology adoption by the digital community.
But despite this did not prevent the existence of a skeptical group, considering that Bitcoin is only a questionable digital entity and who is behind it!
Most people only know about Bitcoin but it is a digital currency that is exchanged over the Internet, frankly, this is true to some extent! Because Bitcoin is more than just a digital currency! It is an open source decentralized platform, network, currency, and ecosystem (distributed) that is revolutionary and technological precedent.
Before getting into more detail, here are the questions we will answer that will make you understand the Bitcoin issue well and smoothly.
What is the Bitcoin mining process?
The mining process is the process of verifying the transactions that take place inside the network and recording them in the distributed registry “Blockchain “, which is a basic process in the bitcoin system, which is used in issuing new currencies on the concept of “proving work” where any computer connected to the network can do it in theory. It has a massive computer power that enables it to mine bitcoin.
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Currently, your home computer cannot perform this operation no matter how powerful it is, because it simply cannot perform the complex calculations that the mining process requires before any other computer in the network, and thus obtain the reward represented by new bitcoins the system makes for you. Therefore, the miners clump together in groups in order to form a large computational force that enables them to compete with other groups to obtain the bonus of recording transactions on the Bitcoin network and thus share the bonus upon obtaining it among the members of the winning group.
What is the Bitcoin protocol?
Bitcoin is a unique and successful form of online payment. So, this success and distinction must have strict rules to which the Bitcoin system is subject, and these rules or laws are what are called the “Bitcoin Protocol”.
To simplify the issue, the protocol is a set of rules programmed in the code running for the Bitcoin network program, whereby any Bitcoin transaction can only take place according to the rules and conditions specified in the protocol’s “code”. Taking into account that it is not possible for anyone to amend the protocol, and then the Bitcoin community must agree to any amendment and accept it before its approval, which is a difficult and complicated process due to the decentralization adopted by the system.