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What is Bitcoin ?…. How it works ?
What is Bitcoin ?
Are you curious to know about Bitcoin……What is Bitcoin ? …..Yes, this is the latest most searched question on google…This is because of the popularity of the Bitcoin …from last 1-2 Years. Peoples are curious to know about bitcoin…
What is bitcoin…?
How it works..?
How can we make money from it.. ?
First of all we need to know about the Blockchain Technology. Don’t worry about it…We will clear your dought further in this article…About…WHAT IS BLOCKCHAIN TECHNOLOGY…?
As stated above first of all ….we will clear the term Blockchain Technology.
What is Blockchain Technology ?
block chain is a continuously growing list of records called blocks, which are linked and secured using cryptography. Each block typically contains a hash pointer as a link to a previous block , a timestamp and transaction data. In simple word “an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way”. The blockchain is managed by peer to peer network collectively adhering to a protocol for validating new blocks. Once recorded, the data in any given block cannot be altered retroactively without the alteration of all subsequent blocks, which requires collusion of the network majority.
The first blockchain was conceptualized in 2008 by an anonymous person or group known as Satoshi Nakamoto and implemented in 2009 as a core component of Bitcoin , where it serves as the public ledger for all transactions. Blockchain based exchange of value can be completed more quickly, more safely and more cheaply than with traditional systems.
As a distributed ledger, blockchain reduces the costs involved in verifying transactions, and by removing the need for trusted “third-parties” such as banks to complete transactions, the technology also lowers the cost of networking, therefore allowing several applications. Major applications of blockchain include cryptocurrencies, such as bitcoin and etherium. Since bitcoin was the first kind of cryptocurrency, other ones have been termed altcoins.
What is Bitcoin ?
Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency. In case of Bitcoin the transactions are made directly using peer to peer system , that means no banks are involved for approval of the transaction…It’s done without involvement of the any banks. That means the one person can directly send big amount of money to the other person with very low amount of fees.
The name given to the transaction system is Peer-to-Peer Electronic Cash System. On 18 August 2008, the domain name ” bitcoin.org ” was registered. In November that year, a link to a paper authored by Satoshi Nakamoto.
The question arrises is that…Who is Satoshi Nakamoto..? The identity of this name is still unknown.
In January 2009, the bitcoin network came into existence after Satoshi Nakamoto mined the first ever block on the chain, known as the genesis block.
How Bitcoin Works ?
Imagine you’re buying coke at the supermarket with a debit card. The transaction has three elements…That are : your card, corresponding to your bank account and your money, the bank itself that verifies the transaction and the transfer of money, and the store that accepts the money from the bank and finalizes the sale.
A Bitcoin transaction has, broadly speaking, the same three components.
Each Bitcoin user stores the data that represents his or her amount of coins in a program called a wallet, consisting of a custom password and a connection to the Bitcoin system. The user sends a transaction request to another user, buying or selling, and both users agree. The peer-to-peer Bitcoin system verifies the transaction via the global network, transferring the value from one user to the next and inserting cryptographic checks and verification at many levels. There is no centralized bank or credit system: the peer-to-peer network completes the encrypted transaction with the help of Bitcoin miners.
How can we make money from it ?
There are two major ways from where you can make money..!
First one – By investment
Second one – By mining of coin
If you wants to go with the 2nd method …Then you have to invest big amount of money for building the mining rig…Mining rig is the set of Hardwares …that contains the number of Graphic Cards and other hardwares…That need more computing power to mine a sufficient amount of coins a day.
If you wants to go with 1st one…Then it depends upon you…Yes there is risk of your Hard earned money…Also there are chances that you can loose your money.
If you wants to invest money in Bitcoin Then you should think about Long term profit…Then & then only you can earn big amount of money from it.
That’s all …We hope that you got something beneficial knowledge from above post. We tried to simplify each term so that you can understand easily.
The most important is that you should think twice before you are going to invest your money in bitcoin. Do a proper researach about bitcoin and it’s working….at your own.