Sunday 20 July 2014

Bitcoin: Open Source P2P Money: Kind of Interesting

Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network.

Courtesy of Wikipedia

Bitcoin is a software-based payment system described by Satoshi Nakamoto[note 1] in 2008,[4] and introduced as open-source software in 2009.[5] Payments are recorded in a public ledger using its own unit of account,[6] which is also called bitcoin.[note 2] Payments work peer-to-peer without a central repository or single administrator, which has led the US Treasury to call bitcoin a decentralized virtual currency.[9] Although its status as a currency is disputed, media reports often refer to bitcoin as a cryptocurrency or digital currency.[10]

Bitcoins are created as a reward for payment processing work in which users offer their computing power to verify and record payments into the public ledger. Called mining, individuals or companies engage in this activity in exchange for transaction fees and newly created bitcoins.[11] Besides mining, bitcoins can be obtained in exchange for fiat money, products, and services.[12] Users can send and receive bitcoins electronically for an optional transaction fee[13] using wallet software on a personal computer, mobile device, or a web application.

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