All You Need To Know About Bitcoin
Blockchain Guide

All You Need To Know About Bitcoin

Bitcoin is a platform that has a famous on-platform Token known as BTC. It is a form of payment solution that transcends boundaries, offers convenience, facilitates privacy, and guarantees security.

Emergence Of Bitcoin

bitcoin

The financial crisis of 2008 led to widespread misery as many banks and financial institutions started to collapse due to a credit mismanagement where Banks had used deposits to issue bad loans for the property market. A credit crunch followed and many people could not access their deposits as the banks, venture capital firms, and other financial entities were insolvent. Satoshi Nakamoto then wrote a famous whitepaper that introduced Blockchain technology and Bitcoin concept under the title ‘Bitcoin: A Peer-to-Peer Electronic Cash System’.

  • Bitcoin Is Decentralized

Decentralization removes third parties such as financial institutions in transactions. Peer-to-peer solutions enable users of BTC to transfer coins to each other from their Crypto wallets. They can also use the wallets to purchase for goods and services at points of sale that accept BTC payments.

Additionally, there is no central server or a central storage for the network. This aspect guarantees security against hacking.

  • Bitcoin Is Open Sourced

Participation on Bitcoin network either as mining or transacting has no barriers to anyone. The public network is permissionless and it is the users that determine control the ecosystem from their own end. Users create Blocks by mining and they are awarded BTC for their effort in solving algorithmic problems.

  • Bitcoin Blocks Are Scalable

A block contains information for verifying a BTC transaction. Initially, Satoshi had limited the size of each block to 32 megabytes. This had the effect of delaying the time taking to verify transactions, a challenge that raised speed concerns. However, the segregated witness (SegWit) feature went live in 2017. It contains data to authenticate transactions meaning that it saves on space. SegWit has been able to basically lowers block size to about 1.25 MBs, with a limit of 23 MBs, there is the benefit of scalability. This allows BTC transactions to proffer faster peer-to-peer transactions that the Bitcoin Cash fork was meant to address.

  • Pseudonymous Privacy

Bitcoin transactions are linked to public addresses rather than real entity identities. This has the benefit of ensuring that the privacy of users if safeguarded. Further, Bitcoin Crypto exchanges are protected from third-party privacy breaches through zero-knowledge protocols that allow entities to prove assets, liabilities, and solvency without having to reveal their real identity.

  • All Other Cryptocurrencies Have Been Created on Bitcoin Model

As the first Cryptocurrency on a Blockchain. Bitcoin has inspired developers to create altcoins that offer the same services as Bitcoin on the spectrum of privacy, transparency, global payment solutions, decentralization, and much more. Hence, Bitcoin, as the pioneer Token, has an advantage of being a true Cryptocurrency than the other altcoins.

Bitcoin Comprises Of Two Tokens

There is a dispute of whether Bitcoin Cash (BCH) or Bitcoin Core (BTC) is the valid concept of Satoshi Nakamoto given that Bitcoin Cash was a hard fork of Bitcoin. Nonetheless, the SegWit application has levelled the two and there are few differences that make each Token better than the other.

Arguably, the most outstanding con for BTC is the mining difficulty, but Bitmain and other BTC mining chip developers are producing more efficient hardware for easy mining.

Conclusion

Bitcoin is an open source, decentralized, fast, and reliable peer to peer payment global payment solution. It is easy to use, profitable to trade, and valuable to hold as a Crypto Asset.

November 17, 2018

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Samantha Mitchell


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