Bitcoin is the first pseudonymous open-source, decentralized, P2P digital currency relying on cryptographic algorithms for the validation of all transactions and the (limited) generation of new coins. It is also deflationary, the opposite of most fiat currencies. Bitcoin transactions are intentionally designed to be irreversible, unlike chargebacks allowed with Paypal and most credit card companies. This offers a unique level of protection for anyone selling goods (merchants or individuals) for BTC. What is Bitcoin?How does it work?Is it legitimate? Decentralized means that Bitcoin is not controlled or run by any centralized authority (think- governments). Bitcoin is a currency (money), just like U.S. Dollars, British Pounds, and the Euro. However, these other currencies are produced, controlled, and distributed by their respective governments. Bitcoin has no centralized authority, and because of this, your accounts (wallets) cannot be frozen, taxed, or otherwise regulated. Bitcoin is free from political motives and turmoil. Economic freedoms starting to sound better and better huh? Although some have tried (and are probably still trying), Bitcoin cannot be shut down by any government. This is because there is no central web server or site that can be taken down. Instead, Bitcoin is run on a P2P network. Decentralized Peer-to-peer. Instead of going through a central server, middleman company, or third-party, as all other payment processing is done, Bitcoin is sent straight from sender to receiver. Each node on the network (your wallet/computer) is able to connect to any other node and act as both a server and a client sharing updates to the blockchain (public ledger). The blockchain is open-door and cant be altered or tampered with. Essentially this means that Bitcoin cannot be counterfeited, transactions cannot be forged/hacked, and there is proof and confirmation of every legit transaction publicly available. The Blockchain tells no lies. Because there is no third-party payment processor, transactions are virtually free. This is great for both the buyer and the seller. P2P Network Cryptographic algorithms Cryptography relates to the study and use of secret codes and encryption technology, while an algorithm is an advanced mathematic problem. When Bitcoin is sent through the network, the transactions are encrypted in a cryptographic hash function known as SHA256. Every transaction has to be signed by a private key for security, which makes fraud and counterfeiting nearly impossible. Helpful Links Common BTC Myths from the Bitcoin Wiki Bitcoin.org,a useful resource site maintained by the Bitcoin Foundation Blockchain.info- You can search the blockchain, view stats, charts, and markets, utilize free applications such as payment processing, create a wallet, and much more! Bitcointalk.org- Join the BTC community and add your voice to the discussions! A great source for verifying the legitimacy of companies and hearing the latest news as it hits. Bitcoins Subreddit- Another voice of the Bitcoin comm
Posted on: Wed, 08 Oct 2014 08:53:57 +0000
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