Money is an essential part of our lives yet a never-ending fantasy to be fulfilled. The more you see, the more you want it through by all common means by lottery. Be it in any form- gold, cash or even online money! Yes, you heard that right. With the advancing times, we now have virtual currencies too!
What is Bitcoin?
- It is a digital currency that is cryptography-based and was created by an anonymous person in 2009.
- The numerous use of applications- booking tickets online, buying and selling things to the companies which accept bitcoin as payment and exchanging currencies in a whole peer to peer network.
- As the title suggests, it is a virtual currency meaning that is doesn’t happen to exist in real life. Unlike the other currencies like dollars, yen, etc., which are produced by banking institutions and there is no such intermediate bank in bitcoin. It is entirely based online.
How does it work?
Mathematics and cryptography are used to create the regulation of new bitcoins. The bitcoin network is decentralized meaning that instead of transactions and account balances being stored at a central computer or database, bitcoins ledgers of accounts more commonly known as the blockchain. It is distributed across tens and thousands of computers around the world.
All bitcoin transactions are cryptographically verified by thousands of computers in the bitcoin network. These very powerful computers as ‘Miners’ a massive amount of energy and processing power to verify the integrity of each and every transaction.
The blockchain keeps track of every transaction that has been ever made in its network. For each such transaction, the miner has to get to terms with a small arithmetic issue. In return, the miner gets the desired bracket of bitcoins as a reward.