Understand once for all what Bitcoin is – Bruno Roland

First of all, where did Bitcoin come from?

Bitcoin was created in 2008, and was elaborated by a person titled Satoshi Nakamoto, but there is no confirmation that this person really exists or existed. There is a theory that Bitcoin was created by a group of libertarian ideals people who sought to design a payment system that did not require government regulation.

How did the first transaction occur?

The first buy and sell operation completed using Bitcoin took place in May 2010, Laszlo Hanyecz sent 10,000 Bitcoins to a friend in the UK in exchange for 2 pizzas. In fact the friend bought the pizzas with his credit card and received the Bitcoins in return.

And finally, what does the coin do?

Bitcoin is a currency like any other, real, dollar or euro, but 100% digital. Other features commonly linked to Bitcoin are: decentralized, encrypted currency that eliminates the need for intermediaries. Let’s discuss each of these characteristics.

Decentralized Currency?

Decentralization takes place by the division of a power that was once absolute, that is, the worldwide computer network that is responsible for confirming and verifying all transactions that take place with Bitcoin.

Encrypted?

Encryption is a study of technical principles aimed at secure communication between third parties. Generally, it is linked to information security protocols, confidentiality, authentication, among others. Bitcoin, being encrypted, ensures greater security in transactions between its users.

Intermediates?

Bitcoin transactions only need the miner, meaning transactions with digital currency eliminate the need for a financial transaction to go through a bank that charges fees and has extremely slow processes.

There is no government, central bank or company that issues Bitcoins, ie it is not possible to generate new currencies.

Normally, the fees charged by companies for making a Bitcoin financial transaction are much cheaper than the usual financial process, where hidden fees are paid for any and all payments.

What’s cool to mention too is that Bitcoin has a limited number of coins, there will only be 21 million Bitcoins and about 80% of those coins have been mined.

And how does a transaction with Bitcoin work?

Bitcoin transactions have their inputs and outputs recorded in blocks, which appear every 10 minutes. These new blocks are linked to the previous block forming a chain of blocks, there is the famous Blockchain.

The first 50 coin block of Bitcoin, known as Genesis Block, was mined in January 2009 by Nakamoto himself. After this first step, other hackers, programmers, and new technology enthusiasts began panning and using their coins.

So if I want to transfer 1 Bitcoin to a friend, the block would record “Bruno sent 1 Bitcoin to Mario on 12/10/2019 at 10:00 AM”, this is exactly how a Bitcoin transaction is recorded.

Benefits to the user

Bitcoin is designed to make purchases and transactions safely and quickly. Interestingly enough, Bitcoin has become a high-risk investment and is considered by many experts to be a store of value, such as gold and other precious metals.

The system is FULLY transparent and it is possible for anyone to see its integrity. And yet transactions are unchanging, transactions and data on the network cannot be changed.

I hope I helped you understand better what is the most widely used digital currency in the world. Many people have a preconception about Bitcoin and end up not using incredible technology for fear. The purpose of this blog is to to facilitate your understanding about this new economy and discuss with you the best ways to use it.