What Is Bitcoin
Bitcoin is undoubtedly one of the technologies that have most attracted attention in the media around the world lately. Many have heard or read an article about it, but few really understand what it is and why Bitcoin is an important technology.
For the Bitcoin user it is fundamentally two things:
- A payment network (Bitcoin with a capital ‘B’)
- The digital currency used in this payment network (bitcoins with a lowercase ‘b’)
The “Bitcoin” payment network is therefore used to send and receive “bitcoins” over the Internet. To understand it better, let’s make a comparison with PayPal and the Euro. PayPal is a payment network, but it is not a currency. On the contrary, the Euro is a currency, but it is not a payment network. The PayPal payment network is usually used to make transactions with other people using currencies such as the Euro or the USD. As Bitcoin meets both facets, it is both a payment network and a currency.
It is important to note that the PayPal payment network is operated and managed by a single private company (PayPal Inc.). The Euro, the USD and the different currencies of each country are also created and controlled centrally by the corresponding governments or central banks. On the contrary, Bitcoin is a fully decentralized payment network. Bitcoin is not controlled by any company or organization.
Who is the creator of Bitcoin?
Its creator (or group of creators) is known under the pseudonym of Satoshi Nakamoto. Nobody knows for sure who is behind this pseudonym. Satoshi Nakamoto designed the Bitcoin protocol in 2008 and the network was launched in 2009. In 2011, Nakamoto announced his definitive disengagement from the project, leaving it in the hands of the opensource community, that is, in the hands of all of us. Put another way; today Bitcoin belongs to users who use it.
Why does Bitcoin matter?
Bitcoin is essentially a peer-to-peer payment network. And its main benefit lies in allowing two people, anywhere in the world, to make a monetary transaction between them directly and freely without intermediaries and with very low commissions. You can for example transfer to someone 5’000 Euros with bitcoins paying only a few cents of commissions and almost instantaneously. We all know that international bank transfers usually take many days and that the fees charged are very high.
It is impossible to censor, block or prevent a transaction in bitcoin. Bitcoin brings for the first time in history the financial sovereignty for people; it is no longer necessary (in theory) to ask permission from a bank, a government or a financial intermediary to carry out a transaction with bitcoins.
Unlike the Internet, which allows information to be freely transmitted and exchanged, Bitcoin proposes to be able to transmit and freely exchange value. Bitcoin is a value transfer protocol.
Source of the article from the site http://www.waslanews.com