The technology was developed by Satoshi Nakamoto back in 2008, although they have been making the concept long back. Bitcoin has been a system that you can send between the users and that will not be passing through a central authority.
This has been the most important feature of Bitcoin. If you think Bitcoin is a currency and you get them as coins or in paper formats, then you are wrong. Bitcoin is just a digital hash key which you need to store safely.
Bitcoins have been the first cryptocurrencies that were introduced. It was also the first product that was built on the blockchain. Let us know more about Mr. Satoshi, the inventor of Bitcoin.
About the Creator / Inventor of Bitcoin
Satoshi Nakamoto proposed the concept of bitcoin back in 2008. He before has been a pseudonymous software developer. The main thing introduced by Mr. Satoshi was the electronic payment system which did have a mathematical proof about the transaction is complete.
The main end result has to be a product which can be used as currency and can be exchanged and transferred and doesn’t have a central authority, and still can be secure, verifiable, and even immutable.
Difference between traditional currencies & Bitcoin
These currencies also are like the one you got in your wallet currently as you can use them to purchase thing as long as both the parties (buyer & seller) agree. Let us start with the differentiation between the traditional currencies & bitcoins, the cryptocurrency:
- Decentralization: Do you know not even Satoshi Nakamoto own bitcoin, or even know the hash key of any of the bitcoin, he just knows the basic fundamentals of working of the product. Bitcoin is decentralized and there is no institution or individual managing the network. The major advantage of the same is that there is no need for banks and government institutions to control anything about their money.
This even solves the issue of double-spending which most of the electronic formats have back in 2010. Bitcoin manages all the transactions which are managed on a distributed and open network, which is typically decentralized.
- Limited Supply: If you had a 10$ note back in the early 50s then the value of it must be 10000x higher than what it is currently. This is due to the central bank making as many currencies as the demand is, and splitting the cost of a single note to 100s of note. This means the actual value of a currency is never with the end-user. With Bitcoin there is only a limited number of combinations hence we are having security about the value of the coins.
- Pseudonymity: Every user is 100% anonymous, and you have total satisfaction that you are not being tracked by the central bank while you are transacting the money. There are protocols made which govern all the different checks and then transfers the money. With the current law, the wallets of bitcoins are forced to track the transactions, but as per bitcoins terms that is not necessary.
- Immutability: There is no button on Bitcoin’s wallet to request back the money, as no one knows the new hash value of the amount you transferred. You cannot claim your bitcoin back once the transaction has proceeded.
These are the difference between the physical currency and cryptocurrency, bitcoin to be precise. If you still have any doubt do let us know in the comment section below. Do you have any bitcoins in your account? Have you been in profit due to bitcoin? Do let us know about the same in the comments.