What is Bitcoin?
Bitcoin is a cryptocurrency, based on blockchain technology. Crypto is called one of the types of virtual currency, for the creation, functioning, and protection of which cryptography is used. Cryptocurrencies could be centralized or decentralized. The main feature of decentralized crypto is the lack of control by the public, judicial and private bodies.

How does this work?

In a decentralized system, all clients are equal. This means that it does not have a single emission center and a decision center. All performed operations are written into data blocks and connected built-in sequence. The information in these blocks, up to the very first transaction, can be viewed by any user on the network.

Where do the coins come from?

We already know that Bitcoin transactions are organized into blocks of data. So, for the proper operation of the network, it is necessary to confirm that the information about the completed transactions is reliable. To do so, you need to calculate the cryptographic signature of this block. This is a complex computer task. Network users called miners, perform this task using the computing power of their equipment. Whoever's the first to do the job gets a reward. This process is referred to as bitcoin mining and anyone can do it.

It is worth noting that the total number of coins that exist in the network or will be extracted is limited. This condition is specified in the code of Bitcoin.

Why is Bitcoin used?

· Allows direct transfers without intermediaries.
· Easy to use. The only thing you need to work with him is to create a Bitcoin wallet. Access to the wallet is provided at any time of the day.
· Anonymous. You can create an unlimited number of wallets without specifying personal data.
· The transaction can be sent to anyone anywhere in the world. At the same time, the transfer will take place within minutes after the Bitcoin network processes the payment.
· Your funds cannot be frozen or blocked, because no one controls them except you.
· With Bitcoin, you can buy anything, including fiat currency, as well as material assets.
· Bitcoin is protected from forgery.
· Allows you to make any transfers with a minimum fixed fee.

Visit other posts: