Bitcoin is the original digital asset, created by Satoshi Nakamoto. The network prides itself because it is peer-to-peer, decentralized, and it offers irreversible transactions.
Satoshi Nakamoto introduced the Bitcoin network as a concept in 2008, hoping to decentralize online payment processing. Unfortunately, Satoshi Nakamoto is just a pen name. While some have claimed to be the person behind the Bitcoin network concept, the true identity of Satoshi Nakamoto is still unconfirmed.
There are a number of positives when it comes to using the Bitcoin payment network. For many, decentralization is the most important factor when using the digital asset.
While Satoshi Nakamoto is the creator of the concept, the Bitcoin network is not controlled by any single entity. Instead, volunteers use their personal computers to run the network. These people, commonly referred to as miners, receive a minimal amount of bitcoin in return. This process allows the network to remain uncontrolled by large banks.
Cryptography deters users from double-spending their digital assets. Because this issue is usually halted by banks, Bitcoin implements a unique solution instead. Since the network is maintained by a number of computers and the individuals controlling them, there is no need for a bank. It is self-maintaining.
While fiat transactions can be reversed, bitcoin transactions cannot be. This assures that nobody can modify transactions to disadvantage others. This also means that anyone using the network should be absolutely certain they want to start and finish a transaction before they send any bitcoins.
These irreversible transactions are listed on the blockchain, which is a completely digital ledger. Transactions are listed in chronological order to assure that bitcoins cannot be double-spent.
Bitcoin has a limited supply available. Only 21 million bitcoins will be issued over time, meaning new bitcoins will only be created until this number is reached. It is this system that encourages bitcoins to grow in value. It is best compared to gold, as its value continuously increases as new gold resources decline.
Public, Yet Private
While the blockchain is publicly displayed information, users do not have to tie their identity to transactions. Instead of having a name attached to an account, an alphanumeric string is used to create a unique address. This address can be used to send or receive bitcoins without a user having to identify themselves.
To create your own address, you will need a digital wallet. Then, you can send and receive your very own bitcoins!
We know that the Bitcoin network can be hard to understand, as it is a complicated subject. You can learn more on the Bitcoin website.