What is the Aim of Bitcoin?
Known as the fastest-growing cryptocurrency, Bitcoin has been around since January 3rd, 2009. Nakamoto was the brains behind the software, which was to launch a completely new way of trading. To date, it is believed that, that Nakamoto is the proud owner of Bitcoin worth more than $19 billion. This bullion means that he is the 44th richest person, world-wide. The interesting thing is that nobody knows who the developer is. Many people believe that he is several people, instead of just one person. The most outrageous thing some believe is that Nakamoto is someone who has time travelled from somewhere in the future.
The Purpose of Bitcoin
Since Bitcoin is a decentralized ledger, this makes it easier for people to transfer money to each other no matter where in the world they are. The ledger is used to store all financial transactions. These transactions are linked like a chain. Hence the name blockchain, each transaction forms a link or block in the chain. When a certain number of transactions have been recorded, then the block is regarded as completed and is saved in a way that no information contained can be changed or altered in any way.
This ledger is a public platform, much like Immediate Bitcoin, meaning that it is not managed by a single person or government. Even the code used in the software is open and is supported by volunteers. An open matrix of computers, situated all around the world, controls the process. This enables anyone, who has something they feel like adding, to do so. The anonymity aspect allows investors to remain unknown to anyone if they so choose. The funds you have in your account allow you to perform any transactions you wish to, provided you have enough money to do so. You may use your name as your Bitcoin address.
Bitcoin's Authentication Process
Similar to when you go to a bank to either deposit or withdraw funds from your account, you would need to furnish the teller or bank manager with some sort of proof, that you are who you say you are. In this way, nobody else can access your account. So too, Bitcoin has a digital signature, which is unique to you, with the algorithm which is referred to as hashing, which in essence takes inputted information and transforms it into a distinctive output of a specific length. In this way, the transaction or information is only accessible by yourself. This full-proof method of encrypting transactions and messages ensures that nobody can ever hack your account or even withdraw any of your funds.
How Do I Use Bitcoin?
Before you can use bitcoin for anything, you have to first obtain it and another step needs to take place before you can use bitcoin and that is controlling your wallet. There are two methods to obtain bitcoin the most recommended one is to purchase it from a reputable exchange. The other option is to mine it, this, however, can be a costly affair and also takes much longer to do. After you have your bitcoin, the next step would be controlling your wallet, because the private key that you are issued when you purchased your bitcoin and added your address, is unique to you. If you misplace or lose this key, you will have no way of accessing your bitcoin. This is where having a third party that offers wallets. They will retain your key and keep it safe. This is not your safest option though, because these places can be hacked. So the best thing would be to store your address and key offline. Once you have all this in place you can either purchase things with your bitcoin, online at stores that accept bitcoin to purchase products using your wallet.