What is Bitcoin?
Bitcoin (BTC) is the first cryptocurrency created using blockchain technology. It is a decentralized digital currency that operates independently of any central authority, unlike traditional fiat currencies like the US dollar or Euro, which are regulated by governments. Bitcoin enables peer-to-peer transactions, allowing users to send and receive funds directly without intermediaries.
Who Created Bitcoin?
The enigmatic creator of Bitcoin remains shrouded in mystery. An individual or group known as Satoshi Nakamoto introduced the concept in a whitepaper, envisioning a revolutionary electronic cash system. The genesis block of BTC was mined on January 9, 2009, marking the official inception of cryptocurrencies. Despite numerous speculations, Satoshi Nakamoto’s true identity has yet to be confirmed.
How Does Bitcoin Work?
Many people perceive Bitcoin as a physical coin, but it functions as a distributed ledger, organized into blocks—a system known as blockchain. Bitcoin miners use powerful computer rigs to validate transactions and add them to this digital ledger. They solve complex mathematical puzzles (proof of work) to ensure transaction accuracy. Successful miners receive newly issued Bitcoin as a reward, creating a monetary incentive to secure the network against fraud. While the Bitcoin system is robust, it faces challenges like the potential for a 51% attack, where a group of miners could gain control over the network’s computation power.
