Well, this is already a rhetorical question to ask since Bitcoin has been topping the list and gaining popularity rapidly. Aside from that, it is a favorite topic discussed by media, as well as other media platforms. However, some are not yet aware of it despite its claimed popularity. Some are still intimidated by the technical nature, which is unknown by other people.
Given that, we aim to help out by providing an in-depth guide to understand bitcoin and its related concepts. In this way, the block can be cut to allow an easy-to-grasp manner to flow effectively to a bigger population.
Let us start with its inventor.
Who Invented Bitcoin?
The pseudonym Satoshi Nakamoto was the only clue about the anonymous inventor of Bitcoin. A paper was published by Nakamoto in October 2008 that circulated throughout the community of cryptography. Following that, in 2009, he completed the Bitcoin software code and invited people to contribute to it from an open-source community.
The first block was mined by himself in January 2009. Based on the Bitcoin addresses, Nakamoto owns over $19 billion amount of Bitcoin. This then makes him the 44th in the rank of richest persons around the world. But behind all of these, no one has an idea about who Nakamoto is. Several investigations by journalists were conducted, as well as speculations that he’s either a celebrity or student, yet nothing was proven true. Another thing, it may be ridiculous, but some claimed that Nakamoto is a time traveler and he came from the future. For more information, you can visit here evolution.
Above all these, Satoshi Nakamoto revolutionized money concepts and solved problems involving traditional currency usage.
Bitcoin an Answer to Centralized Currencies Problems
Problems that are associated with fiat currencies are aimed to be solved by Bitcoin. Using this, you are allowed to transfer funds to anyone in just seconds and with only little transaction fees. This is made possible through the decentralized system of Bitcoin.
Moreover, Bitcoin is defined as a distributed decentralized ledger that records any financial transaction. The ledger uses blockchain technology for it to be implemented. Here, each block represents a series of transactions. When there is enough carried out transaction, it will complete the block and can’t be altered. If you use this, Bitcoin then will help you solve the following problems:
1. Decentralization
Decentralization is considered the best and most vital feature of Bitcoin. This means that there is no control after a single person or authority. The software’s code is maintained and open-sourced by responsible volunteers. Also, the system is operated by an open network of computer systems spread around the whole world. So, whoever wants to pitch in and contribute can participate.
2. Immutability
The network of Bitcoin and its underlying blockchain are all immutable. This means that there’s no reversing can be done once a transaction is completed. This is to ensure that receiver of money will eventually and safely receive it. Others may think of this as a problem in ecommerce when the buyer addresses improved security. But, Bitcoin can also make it possible with escrow accounts.
3. Anonymity
Unlike other traditional financial systems, the software of Bitcoin does not need confirmation of one’s personality. It simply puts the Bitcoin address as your identity. It only now depends on you to carry out your financial transactions through sufficient account funds or other else.
4. Limited Supply
Unlimited supply is expected from the traditional fiat currencies. This is because of the reverse banks that can mint any amount of needed money. However, the Bitcoin number to produce is capped only at 21 million. Thus, the currency value is determined by the demand and perceived benefit that people saw.
