1. Bitcoin Overview
It is a cryptocurrency that allows individuals to send and receive money online without the intervention of governments, central banks or financial companies.
Developed by a programmer named Satoshi Nakamoto in January 2009, Bitcoin is a multidimensional combination of technologies such as P2P network, hash, encryption, and proof-of-work.
The maximum number of issuance is 21 million, and 1615 million were issued as of May 2017. The average / final confirmation time is 10 minutes / 60 minutes, which enables fast and safe transactions between individuals without financial institutions unlike traditional currencies.
2. Issuer
Bitcoin has no central authority to issue and manage them.
Whenever a new transaction occurs, the transaction history is sent to all users, and the transaction is prevented by counterfeiting each transaction so that the book operation is extremely difficult to maintain strong security.
Issuance and management of Bitcoin is done through mining.
Mining means 'finding a hash (password) that meets certain conditions' by the participants in the network to verify bitcoin transactions.
Mining is done by computer programs to solve difficult math problems. Expensive graphics units (GPUs) are mobilized to consume large amounts of electricity.
Instead, miners can earn Bitcoin as a reward, so many miners are jumping into it.
3. Function and features
-Unlike existing currencies, it is possible to make fast and safe transactions between individuals (P2P) without the intervention of the government, central banks or financial institutions, and has a limited amount of circulation like gold.
-Bitcoin transactions are protected by military level crypto. No one can charge you or impersonate you.
As long as you follow the steps necessary to protect your wallet, Bitcoin provides you with a high level of control over the money you own and prepared security for many kinds of illegal activities.
-Bitcoin can be sent from Africa to Canada in just 10 minutes.
You won't be slow to process, charge a lot, or stop sending money like a bank.
This is because payments are made to family members in other countries in the same way as payments to neighbors.
-Bitcoin doesn't have anything like a credit card that a bad guy can steal to impersonate you.
Like cash, payment can be made without revealing your identity.
But to do that, you need to know how to protect your identity when using Bitcoin.
Bitcoin includes a multi-signature feature that allows Bitcoin to be used when subgroups authenticate transactions.
It can be used by the board to find out which of the members used the money, as well as to prevent expenses incurred without sufficient consent from other members.
Many companies must prepare accounting documents for their activities.
Using Bitcoin provides the highest level of transparency for your business because it gives business members information about account balances and transactions.
Nonprofits can also transparently disclose information about donations in this way.
4. Mining method
Mining is the process of using your computer's computing power to process transactions, secure your network, and keep everything in sync within the system.
This can be understood as a bitcoin data center.
Except that miners and anyone working in all countries are designed to be fully decentralized so that they do not have control of the network.
This process is called "mining" in addition to gold mining because it is also a temporary mechanism for issuing new Bitcoins.
But unlike gold mining, Bitcoin mining rewards you for the useful services you need to run a secure payment network. Mining will be required even after the last Bitcoin is issued.