What is Bitcoin?

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Definition

Bitcoin is an experimental transfer and ownership verification system based on a peer-to-peer network without a central authority. The initial application and main innovation of the Bitcoin network is a decentralized digital currency whose unit of account is Bitcoin.

Function

Bitcoin works with software and a protocol that allows participants to issue Bitcoins and manage transactions collectively and automatically. As an open protocol (open-source code), it also allows interoperability of the software and services that use it.

As a currency, Bitcoin is both a payment channel and a store of worth. Bitcoin is designed to be self-regulating. The limited inflation of the Bitcoin system is homogeneously distributed by computing power across the network. And will be limited to 21 million divisible units to the eighth decimal place.

Bitcoin is both a payment channel and a store of worth

The smooth running of exchanges is guaranteed by a general organization that everyone can examine because everything is public:

The basic protocols, the cryptographic algorithms used, the programs that make them operational, the data from the accounts, and the debates of the developers.

propriety

The possession of the Bitcoins is materialized by a series of numbers and letters that constitute a virtual key that allows the Bitcoins associated with it to be spent on the registry. A person can hold several keys gathered in a Bitcoin Wallet, a web, software, or hardware “keyring”. Which allows access to the network in order to carry out transactions.

Bitcoin is an experimental transfer and ownership verification system

The keychain is used to view the Bitcoin balance and the public keys for receiving payments. It also contains (often encrypted) the private keys associated with these public keys.

These private keys must be kept secret because the holder can spend the bitcoins associated with them on the registry. Any medium (keychain) is suitable for storing the sequence of symbols that make up your keychain: paper, USB key, memory, etc.

With the help of appropriate software, you can manage your assets on your computer or telephone. In order to have Bitcoins on an account, you must either have been given Bitcoins by a Bitcoin holder. For example in exchange for a good or service, or go through an exchange platform that converts traditional currencies into Bitcoins or has earned them by participating in currency control operations. Bitcoin’s source code has been released under an open-source MIT license. That permits the use, copying, modification, merging, publishing, distribution, sublicensing, and/or sale of copies of the software, provided. That a copyright notice is included in all copies.

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