We have seen so many new technological changes in the recent past which have improved our life significantly and solved our various problems. There is a new form of currency that has gained a good amount of publicity that is internet based currency.
Bitcoin is a digital based currency that is a completely secure way of exchanging money all over the world by keeping anonymity. It is created by Santosi Nakamoto. A good thing about it is that users are in the control of the flow of currency not the bank, in other words, there is no central authority. For its security, it uses cryptography from the mathematical field. There are about 21 million bitcoin that ever will circulate in the network and owner of this
The public key is used to send and receive money which is shared with the public is very much alike email address or ID number. With the help of public key ownership of bitcoin is determined.
Just like you don’t share your password with anyone, you don’t share your private key with anyone. It is used to login to or controls your account.
Every transaction of money that has ever taken place in bitcoin is shown on the public record known as blockchain. It also keeps a record of the newly generated coins.
In bitcoin, it is the term given to the process of generating new bitcoin which requires unique software that runs on a computer with the very powerful processor. The miners who generate new bitcoin are rewarded with the small percentage of bitcoin.
Just like the bar code technology, bitcoin uses the QR codes that are different to barcode because they use 2-dimensional codes where one is public key and other is a private key. An advantage of this technology is the amount of information it can save on the small area.
Just like the physical money exchange, exchanges are the number of sites from where we can convert or exchange any form of money into bitcoin or the other way around.
Additional service they offer is “wallet” where a user keeps information of all its different private or public keys as address is not made on names of person so they can own multiple addresses
How it works
A user starts with installing software called wallet after installation it will create your two keys.
If a user wants to send the bitcoin to the person so all user need is to ask public key of another user then a user can send the amount of bitcoin to his public key, after login in with your private key.
after you send the amount you have to wait for a time for miners to confirm the transaction using a hash function which is a mathematical algorithm which takes information about previous and adds new information in it to verify a transaction, after verification you receive bitcoin.
Acceptance of bitcoin
Initially, bitcoin was not accepted as mean of exchange but now because of its popularity it is gaining acceptance as a form of currency
Here are some companies and celebrities who accept bitcoin as a currency.
The famous company computer company Dell accepts the bitcoin and if a user buys higher end PC will get 10% of discount.
Microsoft is another big company which accepts bitcoin as the form of currency from which you can buy their software, games and videos.
Overstock is a retail company which first started to accept bitcoin as a form of currency; you can buy different furniture, bedding and jewellery in low price.
Anyone who loves travelling knows what expedia is, it is the biggest travelling site from where you can book hotel, flights and other travelling means.
Some musicians have announced that user can buy their songs using bitcoin like Mel B and Snoop Dogg.
Bitcoin has become a widely recognise form of currency after some difficulties and the in future it will gain more acceptance due to its secure way of transferring money anywhere in world and popularity. Some people has made a huge profit from it buying it when it was cheap and selling it for millions.
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