Bitcoin: The Present and Next Generation Digital Currency
What is the Bitcoin cryptocurrency, which is also called the BTC, Bitcoin, or BTC, in simple words? It is a new decentralized digital currency, while its formation and the entire range of actions is carried out directly on the Internet. It is noteworthy that the Bitcoin system is not under the control of anyone. The issue of Bitcoin requires the work of millions of computers around the world, where a program aimed at calculating mathematical algorithms is installed and launched. All of the above is the main purpose and essence of the digital Bitcoin.
What is Bitcoin (Bitcoin, BTC)?
So, bitcoin is money in digital terms. Registries in the world of cryptocurrencies are called the blockchain. The principle of bitcoins is very similar to cashless bank payments. So, when paying with a card in a cafe or a store, the transfer of physical money does not occur. Instead, the bank register makes changes regarding the operation. The main thing here is the decentralized storage of the first registries. So, storage is not carried out in payment systems and banks, simultaneously on all PCs that work with bitcoins. It means that absolutely anyone has the opportunity to get all the information for the entire cryptocurrency existence period. It is noteworthy that registries provide additional protection through cryptography.
It is impossible to fake it simultaneously for all users. It is also unacceptable to rewrite the information in blocks and announce information that someone has now become the owner of millions. Bitcoin is an electronic currency that protects against such fraud. However, experts urge users to exercise caution, as cases of re-payment by the same coins have already been identified. It suggests that Bitcoin is still not an entirely safe currency.
Existence of the of bitcoins
Speaking about the appearance of bitcoins, it is immediately worth noting that they are not tied to any state. For example, the issue of ordinary currency occurs within the framework of a particular state. This process is closely interconnected with gold reserves, but on the other hand, it is not framed by any framework. Therefore, as much as the state needs money, it will print as much. Bitcoins are money that in no way relates to any state in the world.
The appearance of new coins occurs as a result of servicing a given payment network within the same network. For example, somewhere in Italy, a person paid for dinner at a restaurant with bitcoins. The operation must be recorded in the general registry on all PCs connected to the Bitcoin network.
It will require a special signature resembling a wax seal. Notably that the signature must be calculated, and this is a complicated mathematical problem. So, somewhere in America, there is a PC that is connected to the Bitcoin network and has just calculated the cryptographic signature made.
The computer in the mode of calculating cryptographic signatures, and now the technique itself works, and the owner’s account is periodically replenished. Bitcoins are mined by encrypting and retyping other people’s operations. This process is called mining, which means “mining” bitcoins. The computer in the mode of calculating cryptographic signatures, and now the technique itself works, and the owner’s account is periodically replenished. In other words, bitcoins are mined by encrypting and retyping other people’s operations.
However, it is not bitcoins that are mined but sealing wax necessary to protect the registries. As a result, the user is accrued a kind of incentive for the service. It is worth saying that mining is a separate large section. But in a nutshell, this process can be described as follows: Expensive equipment, low efficiency, competition with mining megawatt clusters, built based on power plants.