Bitcoin is an Electronic Currency, Know How It Works

 Bitcoin not only became the first cryptocurrency, but also the most famous of the more than 5,000 cryptocurrencies in exist today. Many people and also the media eagerly monitor how the movement of this electronic currency, so do not be surprised if the name is now becoming so popular.

Bitcoin is a decentralized digital currency created in January 2009. Bitcoin was born following an idea created by Satoshi Nakamoto, a still mysterious figure. Bitcoin is a currency created by offering the promise of lower transaction fees than traditional online payment mechanisms.

Bitcoin is a type of cryptocurrency because it uses cryptography to keep it safe. Although it is considered a currency, the physical form of Bitcoin itself does not exist, only balances stored in public ledgers are transparently accessible to everyone.

All Bitcoin transactions are verified by a large amount of computing power through a process known as "mining." Bitcoin is not issued or endorsed by any bank or government.

Although not a legal means of payment in most parts of the world, Bitcoin is a very popular virtual currency and has triggered the creation of hundreds of other cryptocurrencies, collectively referred to as altcoins. When traded, the abbreviation of Bitcoin is BTC.

In this article, we will review more about Bitcoin, which is reported from investopedia.com.

Understanding Bitcoin

A Bitcoin system is a collection of computers (also referred to as "nodes" or "miners") that all run Bitcoin code and store it in its blockchain. Figuratively speaking, blockchain can be thought of as a collection of blocks. In each of these blocks is a collection of transactions.

Since all computers running the blockchain have the same list of blocks and transactions, and can see these new blocks when filled with new Bitcoin transactions transparently, no one can cheat the system.

Anyone, whether they are running Bitcoin "nodes" or not, can see these transactions happening in real time. To commit a criminal act against the system, the perpetrator must operate 51% of the computing power that makes up Bitcoin.

However, as of early November 2021, Bitcoin has about 12,809 full nodes, and this number will continue to grow, thus making such an attack would feel highly unlikely.

But in the event of an attack, Bitcoin miners—the people who take part in the Bitcoin network with their computers—will likely break away to the new blockchain, and make the efforts of the perpetrators of the crime futile.

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