So, friends, we are back again and we will jump to next step, in the previous article we told you about the concept of blockchain and today we will be discussing BITCOIN yes you heard it right bitcoin.Everyone has heard about bitcoin has seen its advertise on various social media, but what exactly it is.
Let get it started………..
In today’s world, we are using currency to do transactions in the day to day life. Currency that we all use worldwide is been verified by the central bank that is been certified by the government to take the decision and control the flow of currency in the market.
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India is using Rs as the currency and RBI is the one which manages the printing and controls the flow.
I.e. every country has a centralized authority to control its currency.Now I guess you all must have gained some knowledge about currency and its centralized management.
So moving to further step…
Bitcoin came into existence in the year 2009; it was released as open source software by an unknown person or group of the person named Satoshi Nakamoto. The Identity of Satoshi Nakamoto is still a question mark. Talking in more simple language bitcoin is a digital currency which cannot be touched. Even bitcoin is not controlled by any central agency which means its work by the phenomena of decentralization method and no bank or country can control it.
Also Check : Know what is Block Chain & How it’s Work
Bitcoin is a reward that is generated by the mining process. Every minute details of bitcoin transaction are stored in blockchain which can be seen by everyone but the buyer and the seller remain anonymous.
Since bitcoin is available on the internet only so is there any chances of getting hacked it, to your surprise answer is no.It not possible to hack bitcoin since it’s a perfect code and any small bugs can be fixed easily. Every single transaction of bitcoin is recorded by ledger in block chains in networks of a computer so if anyone tries to hack it then he/she has to do lots of hard work because they will have to hack the whole network of system worldwide.
Satoshi is the smallest unit of bitcoin which is equivalent to 1/100000000 Bitcoin and millibitcoin is equivalent to 1/1000 bitcoin.
Now you all must be thinking from where does the bitcoin come. As we told you that bitcoin is a digital currency and it’s not centrally controlled, does that means bitcoin can be generated by anyone ?
Yes anyone can generate bitcoin and the process of generating bitcoin is called mining and one who does this mining is called minors.
Mining as the name goes means extracting something, Bitcoin is generated in form of complex mathematical problem or complex code which when solved generates a bitcoin and one who solves it is rewarded. As the bitcoin is generated day by day, the coding or the mathematical problem to generate bitcoin becomes more complex and tough to extract. Mining is so complex that it’s consuming lots of electrical energy and a very high processor is needed to mine them So For Mining we have to use specific High Power CPU like AntMiner etc.
Miner plays important role in bitcoin, they not only extract bitcoin but also verify the and records every transaction of bitcoin for which they are paid i.e. more miner more secure is the transaction.
Want To Buy Bitcoin Check Out : Buy bitcoin in India Complete Step By Step Guide
Wait, if you are thinking that more miners can generate more bitcoin then you are wrong. Since every currency has a limit so is with bitcoin it is been said that by 2020 21 million bitcoin is to be released. Day by day mining is becoming more and more difficult to extract. Satoshi, the guy who invented Bitcoin, wanted the number of Bit coins that were mined each time to remain constant, no matter how many miners come aboard.
That’s why the difficulty of mining increases as more miners join the network. Super powerful computers designed just for mining Bitcoins. Apart from mining, you can also purchase bitcoin trough selling channels like Zebpay ,koinex etc but these channels are not verified by the Indian government Yet But In Coming Days we will Give information about trading these site till Keep reading .
So Guys Hope I am able to tell You in Lay Man Language what is Bitcoin and howit is mine or Generated Online. If you have any Query then do ask us Here and Share this article with your friends who want to learn about Btcoin.