IT'S NOT A COIN!
Despite it's name, bitcoins are not actual coins. They are a virtual currency that is used as a form of payment for products and services. The system is peer-to-peer; which means users can transact directly without needing an intermediary. Unlike credit cards or checks that are governed by your banking institution. Bitcoin is regarded as the first major decentralized currency. For that reason, the currency is gaining mainstream momentum with companies the likes of backpage.com, fiverr.com, overstock.com, among others accepting the currency to pay for their services.
HOW IT WORKS |
Bitcoin uses P2P technology without a central authority: Bitcoin is a decentralized currency managed by peer-to-peer technology (P2P2), without a central authority. All functions such as Bitcoin issuance, transaction processing and verification are carried out collectively by the network, without a central supervisor or agency to oversee operations. In contrast, a conventional currency is issued by a central bank as part of its mandate to manage national monetary policy. In the U.S., only the Federal Reserve has the power to issue dollars; it is also the central authority that conducts monetary policy, supervises banks, maintains financial system stability, and provides financial services to depository institutions.
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History |
Bitcoin was invented by Satoshi Nakamoto, who published the invention on 31 October 2008 in a research paper called "Bitcoin: A Peer-to-Peer Electronic Cash system". It was implemented as open source code and released on January 2009.
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