How Bitcoin Works

• Bitcoin is a digital currency, a decentralized system which records transactions in a distributed ledger called a blockchain.

Top Bitcoins in 2021:

• Wrapped Bitcoin
• Bitcoin
• Huobi BTC
• Yearn Finance
• Maker
• Ethereum
• Bitcoin Cash
• Compound
• Binnacle Coin
• Aave
• Monero

BITCOIN Info

Bitcoin

Bitcoin is a cryptocurrency invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto. The currency began use in 2009 when its implementation was released as open-source software. 

According to the Bitcoin Foundation, the word “Bitcoin” is capitalized when it refers to the cryptocurrency as an entity, and it is given as “bitcoin” when it refers to a quantity of the currency or the units themselves. Bitcoin is also abbreviated as “BTC.” 

There are many different Bitcoins on the Market today to invest in, trade and sell.

On the left we have listed some of the most expensive in 2021.  The original BTC = Bitcoin, while ETH = Ethereum the next most popular in use.  So do not get confused Bitcoin is the overall community of different bitcoins.  While BTC stands for the original bitcoin being sold.  

KEY CONCEPTS

The Blockchain

Bitcoin is a network that runs on a protocol known as the blockchain. A 2008 paper by a person or people calling themselves Satoshi Nakamoto first described both the blockchain and Bitcoin and for a while the two terms were all but synonymous.

The blockchain​ has since evolved into a separate concept, and thousands of blockchains have been created using similar cryptographic techniques. This history can make the nomenclature confusing. Blockchain sometimes refers to the original, Bitcoin blockchain. At other times it refers to blockchain technology in general, or to any other specific blockchain, such as the one that powers Ethereum​.

The basics of blockchain technology are mercifully straightforward. Any given blockchain consists of a single chain of discrete blocks of information, arranged chronologically. In principle this information can be any string of 1s and 0s, meaning it could include emails, contracts, land titles, marriage certificates, or bond trades. In theory, any type of contract between two parties can be established on a blockchain as long as both parties agree on the contract. This takes away any need for a third party to be involved in any contract. This opens a world of possibilities including peer-to-peer financial products, like loans or decentralized savings and checking accounts, where banks or any intermediary is irrelevant.

The original BTC is currently a form of alternative currency and be used as a payment system. The use of Bitcoin technology in the future has no limit. 

The main goal of the Ethereum project was to have a platform where these “smart contracts” can occur, therefore creating a whole realm of decentralized financial products without any middlemen and the fees and potential data breaches that come along with them. Now with other coins on the market and ETH version 2 in the wings the uses of Bitcoin technology continues to grow and become more accepted each year.

The versatility of block chain technology has caught the eye of governments and private corporations. Some analysts believe that blockchain technology will ultimately be the most impactful aspect of the cryptocurrency expansion.  Many banks in the USA have heavily patented block chain technology to start offering different services related to them.

Many forms of bitcoin are being developed for the sole purpose as to help Banks move money faster, more cost effectively, and with better security than ever before.  Coins like XRP, and new coins like FORTH hope to do just that in the future.

A Bitcoin at it core is really just a list of transactions and it is shared and confirmed multiple times by multiple computers system to keep the data accurate and secure, yet at the same time public.

Anything can access and use the Bitcoin network and your ethnicity, gender, religion, species, or political leaning are completely irrelevant. This makes the coins more agnostic in use and by its very nature immune to discrimination because the system is blind to common factors where discrimination comes into play.

The block chain technology is a record is publicly available, but it also means that there are complicated measures in place for updating the blockchain ledger. There is no central authority to keep tabs on all bitcoin transactions, so the participants themselves do so by creating and verifying “blocks” of transaction data. 

In general, those keeping the data processing on the block chain are in general called miners, or stakers depending on the type of bitcoin. They are the ones using computers to keep the calculations going and ensuring the data is accurate.  Because it is decentralized and in most cases open to the public even if a few computers go down or loss the internet the others will pickup the load and continue the processes on the block chain for that coin that they have chosen to service.  In most cases those computers doing the heavy lifting for the bitcoin is rewarded by creating new coins of their own or by interest on the coins that they have staked (invested) into the system to keep the block chain running along with the processes and calculations.

Being decentralized allow for freedom of use and keeps particular banks, governments, or agencies from controlling the coins, or who can use them.

The possibilities for Bitcoin technology continue to grow each year and almost as quickly hackers and governments have tried to impact the growth of these technology.

Our hope is as the technology continues to improve so does the security, and acceptance of this new form of financial services.