Bitcoin what it is and how it works

what is a Cryptocurrency?
What is Bitcoin and how does it work?

Dear reader, in this article I am going to tell you everything related to Bitcoin. But do not suffer, I will do it in a very simple way, this is a guide on Bitcoin for all audiences. Here is a brief summary of what you will find in this article:

  1. Definition.
  2. Information about the creator of Bitcoin.
  3. Main features of Bitcoin.

Bitcoin Definition

Bitcoin is the set formed by a protocol and a peer-to-peer network that is used as a crypto currency. In short, Bitcoin is a cryptocurrency.

If you want to know more about crypto coins do not hesitate to click on the following link: What is a cryptocurrency?

Who created Bitcoin?

The first time that crypto currencies were discussed was in a mailing list called cypherpunks in the year 1998..

A computer scientist named Wei Dai named the concept of cryptocurrency for the first time in a conversation between several members of the mailing list. The idea that Wei Dai wanted to express was that of a new type of money with the following characteristics:

  1. A currency that by means of cryptography will be controlled its creation and the transactions that will be carried out with it.
  2. A kind of money that depended absolutely on no one, that was decentralized..

Years later, a programmer under the pseudonym Satoshi Nakamoto introduced Bitcoin into society. In a press release, Satoshi Nakamoto explained the main reasons for creating Bitcoin:

  1. The economic crisis that the financial sector was going through.
  2. The decision taken by governments through their central banks to print money to bail out banks.

There has been much speculation about the true identity of Satoshi Nakamoto, who himself claimed to be a 37-year-old male resident in Japan.

The nationality of Satoshi Nakamoto has been questioned by many Internet users who claim that it is impossible for him to be Japanese for the following reasons:

  1. The perfect English that Satoshi Nakamoto uses when expressing himself.
  2. The hours Satoshi Nakamoto participated in forums that coincided with someone living in the United States and not in Japan.
  3. The code programmed by Satoshi Nakamoto has the comments written in English and not in Japanese.

Satoshi Nakamoto’s true identity is still a mystery today.

Bitcoin Features

  1. No physical currency: There are no coins or legal tender notes.
  2. Decentralized: It has no backing from any country or central bank.
  3. Anonymous: When a transaction is made, the information of the payer and beneficiary is kept anonymous.
  4. Safe: The transactions are safe because they use encrypted codes and confirmation of all members of the blockchain network.
  5. Mined: Are created through a computational process called minado.
  6. Limited: There can only be 21 million, that is the maximum number of this cryptocurrency that can be in the market.
  7. Without intermediaries: Transactions do not need intermediaries since they are carried out directly between the interested parties.
  8. Transparent: All transactions within the Blockchain network are recorded in a Public Book and are visible around the world.
  9. Quick: Operations within the Blockchain network are resolved in a matter of minutes, regardless of the location of the participating parties to the operation.
  10. Irreversible: The operations carried out are irreversible, once a transaction is carried out within the Blockchain there is no way to reverse it.