The need for an exchange is an ancient human characteristic. First,it all started with the barter system and then moved on to gold, silver and metal coins,paper notes and finally to digital currencies. Digital currencies are like real currency but are not issued by any bank. These currencies are decentralized mediums of exchange that hold a position in an electronic ledger system through the use of bitcoin wallet!
Bitcoin and its Origins
Bitcoin has become popular in recent years though the idea and technology used by it are present since 2009.Bitcoin was created by a programmer or group of programmers named Satoshi Nakamoto. Bitcoin is the world’s first cryptocurrency.It is stored and exchanged over the Internet with the help of a digital ledger called blockchain. Bitcoin is a version of electronic cash that helps you to make online payments without going through the financial processes. 1 bitcoin=5, 00,320.49 Indian rupees.
How do Bitcoin works?
You can use bitcoins to make payments to other people or organizations without involving any third party like a bank for validations. Instead, the transactions are cleared and validated by usingBLOCKCHAIN.A blockchain is a public ledger that stores and publicly displays all the transactions that are made within the Bitcoin system. The blocks of recorded data are kept over each other dating back to the first transaction.Blockchain allows the verification of both the sender and receiver preventing one bitcoin to spend twice.
Advantages
- Faster, cheaper payment
- Purchases are not taxed
- Maintains anonymity
- Greater privacy and security
- Low transaction fees
Conclusion
Today bitcoin is the most valuable and widely adopted digital currencies. A large number of organizations, charities, and companies are accepting bitcoins as payments. However, they address a lot of technical challenges and limitations that need to be resolved.