Bitcoin is a very trendy topic which is taking the current world by storm. This is one of the buzzwords of internet right now. People are very interested towards bitcoins for its astronomical value. Bitcoins are basically a certain sort of digital currency that can be transferred through a digital wallet. It is often described as cryptocurrency. Any physical representation of bitcoin is for naught. It is completely online. It is just basically an online alternative of other mediums of exchange such as, cash, cheque and such. But how so? But as we have seen in past history, people have used objects as a medium of exchange. Bitcoin is just like that. You can buy things with bitcoin. You can also buy bitcoinwith regular cash. And you can sell bitcoin for regular cash as well. Not every country accepts bitcoin as a proper alternative to cash though. To know about how to buy and sell bitcoin check this blog.
The network through which bitcoin functions is not that easy to understand for newcomers. People are toiling to get some bitcoins in their hands. People try to mine these bitcoins using high-end computers. But they often fail to do so for it is not easy.
The network that is used for bitcoin transaction is called the blockchain. It incorporates all completed transactions using bitcoins between people. This ledger is basically made sustainable with cryptography. When you open a bitcoin wallet in your mobile phone or in your personal computer you will be equipped with a bitcoin address. Then if you want to pay or receive bitcoins from people, you have to disclose your address to those specific people. Then with the addresses in hand, the transaction can be completed in a matter of minutes.
Every transaction that gets recorded in the blockchain has a special signature. This is the key distinguishable feature in every record. It is called the “seed” of a transaction. This authenticates the sender and the receiver’s information.
A very interesting feat about bitcoins is people can get access to it anonymously. You don’t necessarily need to give your authentic information while getting yourself a bitcoin wallet. You can get yourself a bitcoin address without needing to giveany of your social information. And these blockchains are not exactly maintained by the government. There are specific servers all around the country which help sustain the system. And as there is no imposing authority on this matter, you can easily get away with any transactions. Also, while the seed of the transaction is accessible, one can not get the account number the bitcoin was sent from or received in unless it is revealed explicitly. Considering all this, bitcoins became increasingly popular among criminals for they could mask their identity while transferring huge sums of money right under the nose of law enforcing agencies.
So, this is a rough overview of what bitcoin is and how it works. People can buy bitcoin or sell bitcoin or exchange bitcoin to make this medium of exchange seamless.
