Almost each of us has heard about the term “Bitcoin” but only a few of us are out there in the world who actually knows how the bitcoins work exactly. While very often expanded by the media houses as a currency that is for traffickers and the terrorists, bitcoins stays as an origin of revolution that will truly transform the entire society.
The bitcoin was first created by Satoshi NAKAMOTO in the year 2009. Whether a group of individuals or an individual alone, the identity is yet not known to the world till date.
Bitcoin is the first-ever created cryptocurrency and is definitely a revolutionary simply because it allows an instant and secure circulation of value over the internet. Prolly this is one of the reasons why it is also called as the CYBER-CASH.
Today, if you are to engage yourself in an international transfer of money, you need to use the banking system which are not even connected. The information is basically transmitted using an internet chain, but the ledger of banks are independent and may need an update manually on each transfer which is why these exchanges are pretty time-consuming and are expensive too.
Whereas, the bitcoin is above protocol, very similar to SMTP, that connects any individual who has an access to an internet which makes the exchange of any amount very much possible.
But there is a technology which undermines bitcoin, the blockchain, will have a larger impact on the organisations, that only facilitates the International monetary funds.
Blockchain is basically a new form of data base, that a ledger which records all the transactions that take place between the various members of the same network. The major difference lies on the fact that blockchain is dispersed and updated by the individuals of a network.
Hope this little introduction will give you a better idea on the bitcoin and its functioning. Know more at Bitcoin Superstar.