Bitcoins represent impressive advantages
When we talk about Bitcoin, we refer to a digital currency distributed and used electronically. This currency has a decentralized peer-to-peer network that frees both institutions and individuals from control. In practice, nobody can keep it under control, but the only thing that determines its value is the intersection of supply and demand. It is an economic system that cannot be printed, let alone become physical, but is digital and intangible.
The characteristics of bitcoin
The amount of Bitcoin is minimal; in fact, it is not possible to create more than 21 million of these titles. Satoshi Nakamoto created this digital currency several years ago, i.e., in 2019. It is not known yet if he is the only creator of this system but in reality, it would seem that he is able to obtain paternity.
So when we talk about Bitcoin, we are referring to an open-source software created by the programmer residing in Japan. In mid-2010, the project passed into the hands of Gavin Andresen, the real developer and head of the project.
What is certain is that everything has changed since then. Nowadays, it is enough to look for one of the Bitcoin-Billionaire platforms to understand how high the value of Bitcoin is and that it will probably continue to grow.
Control over Bitcoin
Bitcoins represent impressive advantages from a traditional currency point of view. In fact, there is no authority or institution capable of interfering with transactions, with exchanges of expenses or with any type of transaction for users. Bitcoin movements are very transparent and every transaction is filed in an accounting book that is known by the name of blockchain.
That’s why the Bitcoin network is very interesting because it cannot be controlled by anyone except by the intersection of supply and demand. So it is the network itself that controls the totally decentralized system. The blockchain in turn is completely secure and reliable. Every transaction is absolutely under control thanks to a token and block system.
The possibility of using it as a secure payment system over the Internet and its possible inclusion in some payment platforms show the interest that exists for this cryptocurrency that governments do not know how to regulate. If it does not become an alternative currency in common use, it can become an intermediate currency and a fast, reliable and cheap Internet payment system.
The other characteristics of Bitcoin
Other of the main advantages of cryptocurrencies lie in the fact that they do not have a commission, they can also be used by those who do not have a bank account and then it is an anonymous and absolutely secure payment system. Another interesting point is the environmental impact of this system.
In fact, thanks to the transactions made in this way, you avoid printing plastic credit cards and in addition, you save a lot on ink and paper, as well as everything you need to produce cash instead.
What happens in a Bitcoin transaction?
The mechanism under which the parties to an address operate during a transaction is called a “digital signature” and it is the same one that online banking, the Spanish electronic DNI and many other services use to verify our identity. The concept approach is really simple:
Basically, complex mathematical operations are applied to the transaction message using the private key. This gives a result that bears absolutely no resemblance to the private key, which always remains secret. The result, however, can be verified using the public address and therefore demonstrate that the owner of the private key is the one who actually issued the transaction order.
Only the knower of a private key can sign a valid message for the corresponding public address. The transaction message is then broadcast across the network and reaches the recipient who checks the validity of the signature. The rest of the network also verifies the message and includes it in the unalterable record that we discussed in the previous chapter. Once this occurs, the transaction receives a confirmation.
If the signature is invalid or an attempt is being made to spend unavailable funds, the verification and verification process would fail and the transaction would be rejected by both the beneficiary and the rest of the network.