What You Need to Know About Bitcoin

What is Bitcoin (BTC)?

Bitcoin is a cryptocurrency created in 2009 by someone under the pseudonym Satoshi Nakamoto. The identity of the creator has long since remained a mystery. Bitcoin is the first cryptocurrency and also the first application of blockchain technology. It works on a decentralized system of management.

Bitcoin transactions provide lower transaction fees compared to traditional payments. All of these transactions are verified by a process called mining. Any government authority has not yet undertaken bitcoin, but it is still a very popular cryptocurrency. It has also given rise to a lot of other cryptocurrencies, which are collectively referred to as altcoins.

Understanding Bitcoin

As we know, Bitcoin operates on blockchain technology. It comprises a collection of computers called nodes and stores data on blocks that comprise several transactions. Once these blocks get added to the blockchain after verification, they cannot get altered, which makes the system secure.

The working of the complete system is transparent, and anyone, even someone who isn’t a node of the system, can see all these transactions. To gain access to a bitcoin, you must first generate two keys: a private key and a public key. A public key is a key known to the public and is an address used by others to send bitcoins to the owner. While only the owner knows the private key, which acts like a password to approve the transmission of coins.

Bitcoin Mining

Bitcoin mining is the process by which they add new bitcoins into circulation. It involves solving complex mathematical equations to add a new block to the blockchain. It is the process by which new transactions get verified and then added to the blocks. Miners are then rewarded in the form of bitcoins for mining these blocks.

Final Thoughts

Bitcoin is the most popular cryptocurrency in the market today. It has seen its ups and downs over the years since its advent in 2009, but it seems to be one of the most promising cryptocurrencies of recent times.

At Kointrack, we make blockchain technology accessible to more people and bring you the latest information on the current trends in the crypto market