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How much do you know about Bitcoin?

bitcoin

If you are a person, who in interested in Bitcoin but do not know much about it, then you are in the right place. Read this article thoroughly to understand Bitcoin. Click here to know about біткойн.

Definition of bitcoin

Bitcoin is a virtual currency (or cryptocurrency) created in 2009 by one or more computer programmers using the pseudonym “Satoshi Nakamoto”.

Bitcoin is traded on online platforms from person to person against other money currencies (euro, dollar, yen …), outside traditional banking networks, in a completely “decentralized” way. Unlike other currency currencies, bitcoin is totally devoid of any legal framework:

  • he has no legal tender,
  • its value is not regulated by a central bank (such as, for example, the European Central Bank for the euro). Visit this site to know about bitpay.

How are bitcoins created?

Like other crypto-currencies, bitcoin was created from the Blockchain. The Blockchain (or “data block chain”) is a computer technology for secure storage and transmission of information that operates without a central control body (it is a so-called “decentralized” currency).

The Blockchain is like an immense public and anonymous virtual registry ofall the transactions made by users, which grows with time. The specificity of the Blockchain is to be an encrypted registrythat requires a certain amount of computing power to register and validate transactions between users. Another peculiarity of the Blockchain is to be, as its name indicates, divided into linear blocks, where the last part of each (the cryptographic signature, also called “Hash”) makes it possible to constitute the next block, and therefore of make the entire Blockchain secure and unmodifiable.

What is the difference between Bitcoin and Ethereum?

While the Bitcoin Blockchain allows only simple transactions (exchange of currency currencies), Ethereum can create several types of applications, including executing smartcontracts (smart contracts in the form of computer code).). The Ether is the virtual currency used as payment for these contracts.