What is Bitcoin, Bitcoin Made Elementary

Bitcoin is digital metselspecie for the internet. With bitcoin, you can send money overheen the Internet directly to another person for the very first time, without needing a credit card or bankgebouw. Instead of the credit card company or canap, thousands of networked computers process bitcoin transactions and verify that they are legitimate.

You can download software called wallets on your smartphone or rekentuig that store your bitcoin and work with the bitcoin network to let you send and receive payments. You own your bitcoin by keeping track of a private key. It’s a digital signature that no one can forge or fake. Because you’re the only one who possesses your password, there is no reset or recovery. You have total control and total responsibility.

Instead of injecting all of your private information when you pay, usually all you need to do is scan a QR code or copy and paste a string of letters and numbers to buy something with bitcoin. Then, with a swipe or the press of button, you can send value to anyone anywhere te the world te minutes.

If you’re good with this explanation and don’t need to know anything else, learn how to get bitcoin and how to keep that bitcoin safe on a bitcoin wallet.

However, if you would like to dive ter deeper, proceed reading:

Bitcoin: A Protocol, a Network, a Ledger, an Asset

Bitcoin is a protocol for transferring value overheen the internet. It involves a network of thousands of computers around the world verifying transactions ter a collective ledger. Bitcoin miners use an incredible amount of computing power to secure those transactions and make sure they are authentic. Because people trust this expansive network of computers and the incredible computing power of the bitcoin miners, they see bitcoin spil valuable and an asset.

Protocol

Protocol can be an intimidating word. But you’ve bot using at least one for years now. You got to this pagina using a protocol called HTTP or Hypertext Transfer Protocol. It’s how computers and smartphones talk to servers and retrieve web pages.

The Bitcoin protocol is a set of rules that permit a massive distributed network of people and computers to agree on the accuracy of a record of transactions.

Network and Ledger

Governments that punt currencies go to fine lengths to prevent counterfeiters from making and spending fake physical money. There is a similar problem for any kleintje of digital money, whether it’s a digital currency or a credit card transaction or a handelsbank transfer. How can the people you pay know that you aren’t attempting to spend the same funds twice?

To solve this problem, banks and credit card companies maintain massive centralized transaction ledgers to keep track of how digital funds switch arms. Those ledgers work for some kinds of payments. Because they’re centralized te the forearms of one group of people, however, they can also be lost, accidentally switched, purposefully manipulated, or ruined.

Bitcoin solves the problem of fraudulent double-spending ter digital payments. And it solves that problem without the weaknesses of a central transaction ledger. Instead of relying on one canap, company, or government to maintain a fair, see-through ledger of transactions, Bitcoin relies on a massive global network of computers. That network of computers is the Bitcoin network, and the computers are called Bitcoin “miners”.

Bitcoin miners solve special mathematical problems to add transactions to Bitcoin’s collective, public transaction ledger, called a “blockchain.” The amount of computing power required to solve thesis mathematical problems is breathtaking. A single human being cannot finish one of thesis mathematical puzzles by arm ter a utter day. The bitcoin network completes a little overheen Five,000,000,000,000,000,000,000 every 2nd.

Once a miner adds a group of transactions to the Bitcoin blockchain, other computers ter the Bitcoin network called “knots” all update their total copies of the Bitcoin blockchain. This is Bitcoin’s built-in protection against fraudulent dual spending and manipulation of transaction history. The miners will not add double-spent transactions to the Bitcoin blockchain. And since so many knots have copies of the true blockchain, no one can track the surplus of the Bitcoin network into using a fake, edited, or corrupted version.

Asset

Because Bitcoin’s blockchain provides the world’s most secure ledger for transactions – or for any kleintje of record – many people value the tokens for using the Bitcoin blockchain. Those tokens are what you most likely think of spil “bitcoin.” They’re the bitcoin you have ter your wallet. Since 2009, millions of people have bought, sold, saved, invested, and shopped using this digital asset, just like they would with dollars or euros.

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