Bitcoin just for simple understanding can be termed as a digital or virtual form of currency which we use in our day to day life. Under the current financial system, while making a transaction a person uses cheque, wiring, or cash. Bitcoin (BTC) as a digital currency provides a person a more secure and encrypted way of doing transactions.
Bitcoin was introduced to the world on 3 rd January 2009 by Satoshi Nakamoto. This cryptocurrency gains huge popularity due to the technology on which this digital currency is based upon. Blockchain technology allows bitcoin to maintain complete transparency, immutability, and decentralization.
Cryptocurrency can be simplified as an exchange of digital information that allows its users to buy or sell goods and services just like any other currency in the world. The reason behind the popularity is the trust and security which this technology offers by running on peer to peer topology similar to skype or BitTorrent ( popular file-sharing website). Here are some of the transactional properties which made bitcoin extremely popular and reliable-
Irreversible Nature of Transaction:
Bitcoin has an irreversible nature of the transaction which means that after someone confirms a transaction there is no way going back to it. For a transaction, once confirmed can’t be reversed by not by the sender, not by a central bank, not by the miner or even the Satoshi, no one in the world has the power to stop a transaction once confirmed.
No real-world identity required:
Bitcoin doesn’t require any real-world identities neither for transactions nor for accounts. Users will receive bitcoins on addresses which are a random chain of around 30 characters. Bitcoin allows its users to analyze the flow of a transaction but for someone to connect real-world identities with a transaction or an address is not possible.
Global money transfer:
Bitcoin allows its users to do transactions in almost any part of the world. The transaction is distributed almost immediately across the network and validated in just a few minutes. When they happen in a global computer network they are totally oblivious to your physical position. It doesn’t matter if the user is sending Bitcoin to my friend or someone on the other side of the world.
Secure medium of transferring funds:
Bitcoins are safely kept within a network of public-key cryptography. Only the owner of the private key has the authority to do any sort of transaction in a cryptocurrency. Cryptography technology and larger numbers or symbols make Bitcoins hard to hack. A bitcoin address is better than a Fort Knox and extremely secure and impossible to be hacked.
Easy permissionless access:
For anyone interested in owning or trading in bitcoin just need to download free software. You don’t require any permission to trade, invest, send or receive bitcoins or any other cryptocurrencies. There is no permission required to transfer or receive bitcoins from anyone, anywhere around the world. You just need a mobile and internet access to send or receive a bitcoin.
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