Bitcoin is a digital payment system. The Bitcoin cryptocurrency is the most popular virtual currency in the world and the largest in terms of market capitalization and volume. An increasing amount of companies, shops and stores are accepting Bitcoin as a method of payment around the world, proving that it is more than just an asset to trade.
Bitcoin was created in 2009 by a so-called software developer or group of people named “Satoshi Nakamoto”. Its price skyrocketed in 2017 from about $1.000 to more than $5,000.
Bitcoins are based on Blockchain technology, which is used for storing and transmitting information. This technology is transparent, secure and is not controlled by any central organization.
How does Blockchain technology work?
Let’s say “A” wants to send 10 Bitcoins to “B”. A block is created alongside other transactions. This is then validated by nodes in the network (also called miners) with a cryptography technique using both private and public keys. Each block of transactions is confirmed by miners while storing records of them in a general ledger. After validation, the block is added to the chain (hence the name of the Blockchain technology) and all users are given access to the transactions. “B” will then receive the 10 Bitcoins from “A”.