What Is Bitcoin | What Is Working Of Bitcoin | Bitcoin Wallet

what is bitcoin


what is bitcoin

In today’s Era where everything is going to be digital and online there is also need for currency to be digital and make its transition online. Which will help us to save our time and efforts.

Also there we want have freedom of transferring our money from one person to other person directly. We do not want any Centralized Entity to restrict us for transferring money from one person to another person. Also these entity takes time for transferring our money from one person to another person with lot of formalities. These entities can be banks which is a centralized system.

To avoid these kind of problems in this article we will discuss What Is Bitcoin in brief.

What Is Bitcoin

what is bitcoin

Bitcoin is a Cryptocurreny launched in 2009. It is a open source software. It is said over internet that Bitcoin was invented by a Japanese man Satoshi Nakamoto . But in actual who is this Satoshi Nakamoto nobody knows.  Because there may be a single man or a group of people who invented Bitcoin. It’s ticker is BTC.

In Other Words,

Bitcoin is a Virtual Currency which can be seen in Bitcoin Wallets only. We can not touch bitcoin we can not feel bitcoin like gold and silver.  Because it is a Digital Currency. Even it is called as Digital Gold. Because BTC price is increasing Rapidly year by year. There are limited number of bitcoins which can be generated online are 21 Million.

Working Of Bitcoin

working of bitcoin

Working Of Bitcoin is based on Blockchain Technology. Blockchain Technology is rapidly growing technology and also implementing in various sectors like Farming, Banking and Data Verification.  Many countries have adopted this Blockchain Technology and others are going to implement it on large sector.

Blockchain Technology is based on Distributed Network. This distributed network contains various node connected to each other. If one of the node gets fail then other node can be run to continue the data processing. These nodes gets updated after a specific period of time. We will explain Blockchain Technology individually in brief in our upcoming articles.

So Bitcoin is a blockchain technology based digital coin used to send and receive from one person to another person. Generally It takes 10 minutes in transition of bitcoin from one BTC wallet to other BTC wallet also it depends upon the difficulty level of network.

What is Bitcoin Mining

bitcoin mining

Let us assume there are two person named as Mr. Ujjwal and Ms Kuvira. Now Mr. Ujjwal want to send his Bitcoin to Ms. Kuvira. If Mr. Ujjwal will send his Bitcoin to Ms. Kuvira then there is need for third party who will verify this transition.

Here third parties are known as BTC Miners. These miners uses high power CPU and GPU devices to verify these transitions. This process is known as BTC Mining or BTC Minting.

This transition contains a complex mathematical equation or problem which these high end Mining devices needs to resolve by using Algorithms. So there are lot of miners are available across the world. The one miner which verify this transition by resolving this equation get the rewards for that. This reward is in the form of BTC.

Aim Of Bitcoin

aim of bitcoin

Aim Of Bitcoin was to give freedom to public for transferring the money from person to person. No matter sender and receiver are from same country or not. By doing so we can reduce the banking charges for sending the money from one country to another country.

So BTC provide us freedom to send and receive money on P2P model. It takes very less time and very less amount of charge for transferring the BTC from one person to another person.

“Keep in mind here is that we are not transferring the fiat physically from one person to another person it is online process where amount of Bitcoins are send from one bitcoin wallet to another bitcoin wallet which later on can be converted in FIAT currency”

So it was launched to resolve these cross border transition problems. But now BTC have also became a asset. Because people started trading on BTC.

What Is Bitcoin Wallet

bitcoin wallet

Bitcoin wallet is Online Digitally Generated Hash Code using cryptography technique. BTC Wallet is used to save your bitcoins. Whenever we generate a BTC Wallet then three things are generated named as,

(1) Private Key (Confidential Key)

(2) Public key

(3) Wallet Address

       “private key is our confidential key we should not share it with others”

So after signing up for a bitcoin wallet above mentioned three things are generated virtually online. It is a one way process because we can generate public key from private key but cant generate private key from public key.

Likewise, we can generate Bitcoin Wallet Address from Public Key but we cant generate Public Key back from Bitcoin Wallet Address.

Where Generation of Public Key from Private Key is a highly mathematical function while generation of BTC Wallet Address from Public Key is hash function.

In other words,

BTC Wallet Address is a Hash Value of Public Key.

How To Buy Bitcoin & Sell Bitcoin

buy bitcoin

There are various Exchanges where you can buy BTC and sell BTC. Bitcoin Exchanges facilitate you to convert your BTC into USD and USD into BTC too. Some of these BTC exchanges are listed below,

Wazirx (India Based) (Recommended)

Bittrex  (International) (Recommended)

Binance (International)

Coinbase  (US & Canada)

Coinsqure (US & Canada)

“If you are new to cryptocurrency then for security point of view, It is recommended that use the above links to sign up Exchanges because these links are trusted do not directly search these websites online because sometimes misleading ads there which can redirect you somewhere else”

In the above exchanges Binance is very good for trading bitcoins. Because it is very fast and easy to use. Otherwise you can also go for Bittrex and Coinbase these exchanges also provide you good services.

You need to just sign up for these exchanges online and then verify you identity. We recommended you to buy BTC or sell BTC on these exchanges after verification of your identity only for security point of view.

Advantages Of BTC

  • It take very less time for making one transition i e around 10 minutes.
  • It is very secure nearly cant be hacked.
  • No manpower is needed for transition
  • It saves lot of money in transition like banking charges etc.
  • It is anonymous
  • It is decentralized cryptocurrency

Disadvantages Of BTC

  • Its prices goes up and down very fastly
  • It follows irreversible process if we sent BTC by mistake we cant get it back from receiver.

Conclusion Of What Is BTC

Bitcoin is a world’s first generate Concurrency used for sending and receiving of money (no matter how far you are) from one place to another place in less period of time which is approximate 10 Minutes.

BTC use case was just to transition of money from one place to another in small period of time but now it have also became a source of income. Because BTC is working as a asset now it is trading on large platforms. Whereas Bitcoin ETF is going to launch soon. After launching this ETF its price will be to moon it is expected by industry experts.

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