Bitcoin currency is world’s first decentralized virtual currency , a digital money which is transferred from one person to other via online network. As its digital , it can’t be obtained physically rather it remains in your online wallet. Its an open source software, which uses peer to peer technology to perform the transactions. Bitcoin software uses Encryption techniques to generate the units of currency.
As bitcoin is decentralized there is no controlling body or authority which governs the bitcoin network.
Bitcoin software was developed in 2009 by Satoshi Nakamoto. Not much is known about the identity of Satoshi. Infact, multiple people have claimed to be Satoshi, it isn’t sure who the real person is.
1 Bitcoin = 167867.91 Indian Rupee
1 Bitcoin = 2609.46 US Dollar
Working of Bitcoin
Just download the bitcoin app on your mobile or computer , sign up and it would generate your bitcoin wallet address. This is somewhat similar to email id. To receive money from someone you just need to provide them your wallet address.
From the technical front, Bitcoin uses cryptography technology to make the transactions secure, authentic and transparent. Bitcoin uses a public ledger which stores each and every confirmed transaction. Its a kind of database which holds all approved transactions. This public ledger is known as Block Chain.
Now, the question arises who approves these transactions since there isn’t any third party involvement.
Whenever a bitcoin transaction occurs, bitcoin wallet attaches a mathematical equation to it which serves as a digital signature. This ensures the authenticity of the transactions. For approving these transactions, there is a group of coders called miners who tries to solve the mathematical equation attached to the transaction. As soon as the equation is decoded, the transaction is considered approved and entry for that is made in block chain. This process of approving the transaction by decoding the equation is known as mining. Anyone who performs the decoding successfully gets a reward in form of bitcoin. Mining involves the use of the computing power for decoding these equations.
Some other facts about Bitcoin Currency
- No controlling body.
- Transaction can happen 24*7, even of weekends and public holidays.
- The process is transparent and each transaction log is available in block chain
- This new online payment system is still not accepted in most of countries.
- The value of bitcoin fluctuate more as compared to other units of currency as there isn’t a governing body. So more the demand higher goes the bitcoin value.