What is Bitcoin About
What Is Bitcoin About?
This is one of the most frequently asked questions in the world right now. To make it simple, Bitcoin is a digital version of money where the transactions are done online.
“It is a medium of exchange just like your normal everyday currency such as the USD, but designed for the purpose of exchanging digital information through a process known as cryptography”.
What this means is that these transactions don’t need validation from the banks or the government to work or thrive, due to its decentralized nature. The digital transactions take place directly between buyer and seller without an intermediary, such as a bank, to collect and distribute funds. The transactions are recorded in a distributed ledger called a blockchain.
This blockchain technology may be the most important single development since the invention of the internet itself. So, what is Bitcoin about? Well, it’s going to change the way business gets done, how documents are exchanged, how real estate is sold and registered, how stocks and bonds are tracked, how inventory is managed and how people transact their financial affairs. It’s going to be a game changer.
Bitcoin has certain rules, also known as the Bitcoin protocol, which makes it work. The ingenious part of Bitcoin is not necessarily the creation of the currency but rather the creation of the Bitcoin protocol.
Bitcoin successfully found a way to build a decentralized digital transmission system which means the network is powered by its users without having any third party, central authority or middleman controlling it. Neither the central bank, nor the government has any power over this distribution system.
History Making Technology
After decades of over-regulation and central bank meddling, the financial markets are anything but free. The problem with a centralized network in a payment system is that it’s done by a central server that keeps track of your balances and they charge you expensive transaction fees for the ‘pleasure of doing business‘ with them.
Now this oppressive government controlled system has reached a tipping point. For the first time in history, technology makes it possible to transfer ‘property rights‘ (such as shares, certificates, digital money, etc.) in a fast, transparent and very secure way regardless of acceptance or approval of governments or the participation of traditional banks.
The first ever-successful cryptocurrency (Bitcoin) emerged from the invention by Satoshi Nakamoto. This was then followed by other types of crytocurrencies competing with Bitcoin.