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An Overview of Bitcoin

What is Bitcoin? Bitcoin is the type of cryptocurrency. Cryptocurrencies are virtual currency. Bitcoin is not authorized by the bank. It uses the peer-to-peer techniques for the transaction. Bitcoin is based on blockchain technology. Which is used to provide the platform for it. Bitcoin uses the asymmetric cryptography method for the transaction.

 

Bitcoin is a decentralized currency. The government doesn't have to involve in bitcoin. What is asymmetric cryptography and how it is used by bitcoin? Asymmetric cryptography is used to secure our data. In this method, two key is used, public and private key. The function of the private key is for encryption. The public key is shareable with anyone. A public key is used to perform decryption. So that receiver can get the original message sent by the sender.

 

As we know that bitcoin is based on blockchain technology. So it uses the function of the blockchain. Function refers to techniques for encryption. As well as it uses the digital signature. A digital signature is used to hide the information of the sender. It is different from a handwritten signature. Now we will take an overview of bitcoin.

 

Overview of Bitcoin

Bitcoin is first invented by Satoshi Nakamoto in 2008. $250 Billion is the total market cap of bitcoin until January 2018. Its network first released on 3 Jan, 2009. Blockchain provides the platform for bitcoin. Bitcoin provides a digital wallet to make the transaction. It can be run on mobile or computer. Also, it assigns a unique address for your bitcoin. A user can access this wallet with three types. It can be accessed from computer as a software or website. Also, it is available for mobile use as a mobile wallet.

 

Bitcoin uses the cryptography technology for security. It provides the facility to buy or exchange of bitcoin. As it uses cryptography technology every time it generates a public and private key for every address. The public key is accessible to anyone. If someone wants to know the public key, then buy bitcoin or exchange bitcoin term is used. Bitcoin is stored in bitcoin network. Anyone can purchase the bitcoin or exchange it using public key. Many of company provide the facility to accept the bitcoin. All transaction is shown publicly. 

 

It is work on a peer-to-peer network system. So if a transaction is made once, it cannot be reversed. It is because of a decentralized environment. As well as it cannot provide the facility to modify the transaction.