What is Bitcoin

Bitcoin is a decentralized digital currency that enables peer-to-peer transactions without the need for a central authority such as a bank or government. It was invented in 2008 by an anonymous person or group known as Satoshi Nakamoto and was released as open-source software in 2009.

Bitcoin operates on a technology called blockchain, which is a public ledger containing all transaction data from anyone who uses bitcoin. Transactions are verified by network nodes through cryptography and recorded in this distributed ledger.

How Bitcoin Works

Bitcoin users can send and receive coins using wallet software on a computer or mobile device. Each transaction is secured with cryptographic keys and is added to the blockchain by a process called mining, which involves solving complex mathematical problems.

Miners are rewarded with newly created bitcoins and transaction fees. This process ensures the integrity and chronological order of the blockchain.

Key Features of Bitcoin

• Decentralized: No central authority controls Bitcoin, making it resistant to censorship and interference.
• Limited Supply: There will only ever be 21 million bitcoins in existence, which helps protect against inflation.
• Borderless: Bitcoin can be sent and received anywhere in the world without relying on traditional financial systems.
• Transparent: All transactions are recorded on a public ledger accessible to anyone.

Conclusion

Bitcoin represents a new form of money that is digital, secure, and independent from traditional financial institutions. As it continues to grow in popularity and use, it is reshaping the way people think about currency and financial freedom.