Bitcoins are first decentralized cryptocurrency and payment system invented by an alias named Satoshi Nakamoto in 2009. It can be send through internet without going to bank which means fees are much lower, can be used in every country and there is no prerequisite or arbitrary limits.
How Bitcoins work?
Bitcoins are generated all over the internet by anybody using a free application called a Bitcoin Miner. Bitcoin operates as a peer to peer network. Mining requires certain amount of work for each block of coins this amount is automatically adjusted by the network such that bitcoin can always created at predicted and limited rate. If transfer of bitcoin is done an electronic signature will be added after few minutes transaction will be verified by a miner and permanently and anonymously stored in network. Bitcoin software is completely open source and anybody can review the code.
Where do they come from?
Bitcoin miners uses special softwares to solve maths problems and are issued certain number of bitcoins in exchange. The network automatically changes the difficulty of the maths problem depending upon how fast they are being solved. Initially, processors were used to mine but sooner miners found out Graphics cards used for games are faster ways to mine bit coins but consumed lots of electricity. Later ASICs [Application Specific Integrated Circuit Chips] were designed specifically for Bitcoin Mining. It made mining even faster while using very less power. Mining is important and integral part of bitcoins that ensures fairness while keeping bitcoin network stable,safe and secure.
Crazy Facts About Bitcoins
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