Bitcoin- What is it and How It Is Used

Bitcoin - 

Bitcoin is a CryptoCurrency and a digital payment system. It is an innovative payment network and a new kind of money. Who exactly created it is still unknown but it was created by some or a group of programmers and it was released in 2009.



Bitcoin is nothing more than a mobile app or computer program that provides a personal Bitcoin wallet and allows a user to send and receive bitcoins with them.

Basically it is a digital currency based on peer to peer system. The transaction of Bitcoin takes place between the users directly without any intermediary. There is no central authority or Banks to manage these transactions. The issuing of bitcoin is carried out collectively by the network. 

Bitcoin is an open source currency, it is publicly designed and no one exactly owns it but everyone can use it.

Blockchain: 

The transaction of Bitcoins are recorded in a public digital ledger which is called a Blockchain. It is maintained by a nodes which are communicating and running the bitcoin software.


Mining:

Mining is done to keep the Blockchain consistent and complete. Basically it is a record keeping service for Bitcoin.

With Bitcoin, miners use special software to solve math problems and are issued a certain number of bitcoins in exchange. This provides a smart way to issue the currency and also creates an incentive for more people to mine.

Bitcoin miners help keep the Bitcoin network secure by approving transactions. Mining is an important and integral part of Bitcoin that ensures fairness while keeping the Bitcoin network stable, safe and secure.

Uses:

Bitcoin can be used as a normal currency and the merchants accepting Bitcoin has been increasing day by day. Since the payment fees for Bitcoins are much lesser as compared to Credit Card or Payment Gateways so the merchants and many payment gateways has started using it instead of the traditional currency.
  

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