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Thursday, June 7, 2018

What is Bitcoin?, What is Bitcoin technology? and How Bitcoin works?

What is Bitcoin?


Bitcoin is a cryptocurrency, or a digital currency, that uses rules of cryptography for regulation and generation of units of currency. Bitcoin falls under the scope of cryptocurrency and was the first and most valuable among them. It is commonly called a decentralised digital currency. 
Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part. Through many of its unique properties, Bitcoin allows exciting uses that could not be covered by any previous payment system.


  • Fast peer-to-peer transactions
  • Worldwide payments
  • Low processing fees
It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. 


Video by: WeUseCoins
Who created it?
Satoshi Nakamoto is the name used by the unknown person or persons who developed bitcoin, authored the bitcoin white paper, and created and deployed bitcoin's original reference implementation. 
The idea was to produce a means of exchange, independent of any central authority that could be transferred electronically in a secure, verifiable and immutable way.
As part of the implementation, they also devised the first blockchain database. In the process they were the first to solve the double-spending problem for digital currency using a peer-to-peer network. They were active in the development of bitcoin up until December 2010.

What is Blockchain?
Blockchain is the shared public ledger on which the entire decentralised distributed peer-to-peer bitcoin network relies. All confirmed transactions are included in the blockchain so that the bitcoin wallet can calculate the spendable balance and new transactions can be verified.

Video by: WeUseCoins
What is Bitcoin technology?


Once you have installed wallet on your computer or mobile device, it will generate your first bitcoin address and you can create more whenever you need one.
A Transaction is transfer of value between bitcoin addresses that get included used to digitally sign transactions to provide a mathematical proof that they are valid. Bitcoin wallets keep a secret piece of data called the private key or seed which is used to sign transaction provide a mathematical proof that they came from the owner of the wallet.
A digital signature prevents the transaction from being altered by anyone once it has been signed. All transactions are broadcast between users and usually begin to be validated and confirmed by the bitcoin network within a few minutes and mostly within an hour.
How Bitcoin works?
Bitcoin’s are completely virtual coins designed to be ‘self-contained’ for their value, with no need for banks to move and store the money.
Once you own bitcoin’s, they possess value and trade just as if they were nuggets of gold in your pocket. You can use your bitcoin’s to purchase goods and services online, or you can tuck them away and hope that their value increases over the years. 
How bitcoin is different from traditional currencies?
Bitcoin can be used to pay for things electronically, if both parties are willing. In that sense, it's like conventional dollars, euros, or yen, which are also traded digitally.
Is Bitcoin Legal? 
In most countries, bitcoin mining is legal. Of course, there are legal ways to mine bitcoin, which generally means using your own resources, such as electricity and processing power. In this case, mining bitcoin’s is legal, but you're stealing the resources needed to mine them, which is illegal Click here to know more about.
India: The Indian central bank has issued a couple of official warnings on bitcoin, and at the end of 2017 the country's finance minister clarified in an interview that bitcoin is not legal tender. The government does not yet have any regulations that cover cryptocurrencies, although it is looking at recommendations.
The central bank, however, has barred Indian financial institutions from working with cryptocurrency exchanges and other related services (although this is being contested in the judicial system).
What world leaders are say about Bitcoin?
·        I'm a big fan of Bitcoin... Regulation of money supply needs to be depoliticized. - Al Gore (Former US vice president and winner of Nobel Peace prize)

·        Bitcoin is a technological tour de force. (Bill Gates - Microsoft Co-founder).

·        Every informed person needs to know about Bitcoin because it might be one of the world's most important developments. (Leon Louw - Nobel Peace prize nominee)

Know more about visit Bitcoin: Click here
Know about Bitcoin India™ :  Click here
Bitcoin India™ is the world's largest platform for buying and selling bitcoin for INR at the current market rate. As both an exchange and a bitcoin wallet, Bitcoin India™ offers a place to securely store, send and receive bitcoin with minimal fees, and can process bitcoin payments to any merchant even without a Bitcoin India™ account. 

So now you have got the basics about bitcoin, hope you are excited about the potential and now you want to buy some. We would suggest before proceeding to buy Bitcoin, it is important to understand what it is, and its advantages and disadvantages. 


Reference: Wikipedia, wikihow.com and weusecoins.com.

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