What is bitcoin?

Date: 30 July 2018, 13:07

Bitcoin is a digital or electronic currency, invented by ingenious programmers, to change the very essence of the online payment system.

Perhaps you will say: the existing system is already quite good! But, in reality, all our purchases are made through a bank that takes a commission from the transaction, and takes into account all such transactions by name, in relation to your personality. Over time, spending grows, so the commission of the bank also grows.

Also do not forget about security. The bank or credit company must be entrusted with personal data, and you do it every time.
Some people interested in this problem have tried to come up with a payment system with a sufficient level of security and without intermediaries. But it was not possible to implement this at the proper level, as they could not guarantee payment by the buyer of any products or goods, the system could not itself become a guarantor.

Everything changed after finding the right solution

In 2008, a programmer introduced himself as a certain Satoshi Nakamoto was able to describe the algorithm of the payment system and currency, in which all these difficulties would be solved. In his blog, he described the principle that ensures the safety and confidentiality of all users. Thus, instead of a bank that marks all transactions with money in one general book, all users will mark operations simultaneously, but each other. It turns out that any attempt to deceive the network will be prevented, a counterfeit or fake payment will be rejected. It is called the system a block system, i.е. chain of blocks.

The advantages of such an algorithm of calculations in the network are obvious: all users are involved in the turnover of operations, no one can demand a commission for payments or manage them. Everyone can perform the operations of transferring and receiving funds to his account.

What does it mean bitcoin?

In essence, this currency allows you to quickly and easily spend money, avoiding any difficulties, as small, like the speed of payments and withdrawal of commission, and quite significant, related to the limitations of the physical currency, i.e. fiat.
At the moment, many online shops accept such currencies, they can buy clothes for them and even pay for their studies at the university, go to the cinema or take a plane ticket.

The decision of Satoshi Nakamoto was very successful and marked the beginning of a new era of calculations in the network.

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