Coinmonks
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Bitcoin Characteristics

All you need to know…

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Bitcoin is a global digital decentralized currency that runs on a distributed network of computers (nodes), was created in January 2009 by Satoshi Nakamoto. Bitcoin’s creator originally described the need for “an electronic payment system based on cryptographic proof instead of trust”. BTC operates free of any central control or the oversight of governments or banks.

Transactions are verified from a cryptographic system through nodes located around the world and recorded on a public ledger which is called blockchain.

Bitcoin the first cryptocurrency.

Bitcoin is changing the whole world. It’s going to be the future currency.

Bitcoin is digital money that allows secure peer-to-peer transactions on the internet.

Bitcoin Aspects — Characteristics

  • Decentralization
  • Transparency
  • Open Sourced
  • Fast, Easy & Safe
  • Privacy
  • Value
  • Permissionless

Decentralization

The entire network of Bitcoin is decentralized.

One of the most crucial characteristics of bitcoin is decentralization. Bitcoin Nodes are distributed globally by millions of miners, there is no central power as there is in traditional currencies (FIAT), which are issued by a central authority (bank, government), no one entity can stop it. There is no central entity that shuts down the network, changes its protocols, or edits the ledger. These are based on consensus protocols. This means that network changes of any type can be achieved only if 51% of the users agree to it.

Everyone in the entire world can become a member of this network.

Transparency

As we already mentioned every transaction is stored in a public ledger, the blockchain, this automatically means transparency. People who utilize this digital currency can remain anonymous; nobody can know personal or financial information, although transactions are all recorded on this ledger and are publicly available in the ecosystem. Users of the network must be incentivized to trust the network.

Open Sourced

Bitcoin is open-sourced. Bitcoin’s design is public, developers from the whole world can participate in the improvement and development of the network. Nobody owns or controls Bitcoin.

Fast, Easy & Safe

One of the most important characteristics is the quick and safe process of transactions. Bitcoin has the possibility to send money across the globe with low transaction costs and just in a few seconds or minutes. Bitcoin is faster than any other method of transaction. It is important to mention that transactions are Peer-to-Peer or P2P, this means that no one-third party is needed to complete and verify the transactions. Then, users can make an address in the bitcoin network in just a few minutes. Users don’t need any legal documents (such as in banks), the only thing is to create a very strong password and it is important to remember it because it is not getting back!

Privacy

It is not important to mention again and again anonymity, due to the fact that there is no way to track everything about the user. There are no requirements of any legal paper that can help to identify the person. So, the government can’t know who is behind from every account.

Value

Bitcoin’s price has risen exponentially in just over a decade, from less than $1 in 2011 to more than $68,000 as of November 2021. Its value is derived from several sources, including its relative scarcity, market demand and cost of production through the mining process.

Permissionless

Bitcoin Mining is allowed to anyone to transact and join as a validator in the network through proof of work or node mechanism. The data on these blockchains is publicly available, and complete copies of the ledgers are stored across the globe. This is what makes it hard to censor or hack these systems. This blockchain does not have anyone who controls it and keeps your privacy as there is no need for identifying themselves to get an address and perform transactions.

Bitcoin is available to everyone!

To conclude…

The main aspects-characteristics of Bitcoin are mentioned above, which makes it different from the traditional currencies. From 2009 until now, every aspect of the Bitcoin network is in a constant process of optimization, maturation and specialization.

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