So what the hell is bitcoin then?
Bitcoin is a cryptocurrency that was launched officially in January 2009. Bitcoin relies on a distributed database / peer 2 peer networking structure that’s decentralised, offering ways to secure, or encrypt each created or managed transaction with no central authority. A sort of ‘posh’, accountancy distributed ledger of transactions known as ‘Blockchain’.
Transactions are stored in a ‘block’, each block contains at least a thousand transactions as digital information. This is stored in a database, ‘chain’ in many places (p2p distributed), and is not regulated by an administrator, bank, person, or government (no trusted third party). Every transaction is unique to the Bitcoin holder and cannot be reproduced. This makes Bitcoins difficult to hack, but not impossible.
Who created Bitcoin?
Satoshi Nakamoto is said to of been a brilliant programmer, who cut his technology credentials at Netscape.
In the early 2000s Satoshi experimented with a way to create a reliable digital currency for a university project, and boom yes Bitcoin was born. Originally Bitcoin was referred to as Satoshi’s. ✌(‘ω’)
Why is Cryptocurrency essential?
The state of economies in certain countries makes banking a hazardous business.
This could be due to a number of factors: Economic Uncertainty, Volatility, Financial collapse, and Hyperinflation. Cryptocurrency for many of the worlds citizens is a welcome safer accessible alternative,although not without risks due to the currencies volatility due to price fluctuations.
Cryptocurrency holders greatly benefit from needing ‘no upgrade’, with each technological shift. The need for third party verification of transactions is eliminated, reducing transaction costs.
The enigma of Bitcoin’s disappearing founder Satoshi
Satoshi’s Bitcoin account is said to exist to test the early technology of the currency, and is currently untouched. The first ‘Official’ 50 bitcoins issued by Satoshi were sent on 3rd January 2009 from what is referred to as the ‘Genesis Block’. Satoshi Nakamoto last posted to Bitcoin forum’s around 2013. Then, without any word Satoshi just simply disappeared.
No one knows what happened to Satoshi, or who Satoshi really is! Wherever Satoshi may be we hope he’s found happiness. ʕ·ᴥ·ʔ
Some of the issues:
- Cryptocurrencies volatile risky nature with high gains of course to be made!
- Reliance on understanding the complex buy / sell processes to obtain these currencies through multiple vendors.
- Reliance on often complex technology software, and hardware.
- Variety ranging from Cryptocurrency’s such as Bitcoin cash, Altcoins, to complex ‘Smart Contracts’, and ‘Fiat’ are daunting to the uninitiated.
- Decentralisation is a wonderful concept but if you have no access to your Cryptocurrency, its difficult to get the Crypto back by proving your the owner even with ID!
Here at ixdlab_ we can help you to understand and formulate opinions on using electronic cashless payment technologies such as Bitcoin, Ripple, XRM in your business. Look out for more on #Cryptocurrencies later on.
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