When it comes to cryptocurrency, the first thing that pops up in everyone’s mind is “Bitcoin”. Well! Where most of us are not familiar with the concept behind the cryptocurrency, still we all have heard of word “Bitcoin” at some point. So, What is Bitcoin?
Before explaining what is Bitcoin, let us focus on understanding its history and concept first. Bitcoin was invented in 2009 and was developed by the person with an alias name Satoshi Nakamoto. With this invention, the world saw a drastic change in the journey of making transactions across the globe. With this invention, the transactions were enabled without involving any middle-authority like banks.
What transactions are we Talking About Here? Right! This must be the next question fumbling in your heads after reading the above lines. So, here it is! When we talk transactions using “Bitcoin”, we mean that you can use these virtual coins, for booking a Hotel on Expedia, Buy Furniture on Overstock and even buy Xbox games. But honestly, since the discovery of Bitcoin, it has been widely used for trading purposes. And as we know many of the traders have even become rich overnight trading in these bitcoins.
Anyways, Enough about the juggling around with the concept of Bitcoin, Let’s come back to the question What is Bitcoin? Although, trust us we have not left behind the explaining of the concept behind it. In fact, we will discuss this further in detail in the coming up articles.
For now, let’s jump back to What is Bitcoin?
Bitcoin is a first Cryptocurrency that shadowed over the entire market. This is the one cryptocurrency that follows all the rules of cryptography. The regulations of the Bitcoin are set according to the norms of the Cryptography. Commonly, this concept behind the Bitcoin is the decentralized digital currency.
Understanding the Core of What is Bitcoin?
When we talk about Bitcoin, there is a lot of confusion among the people around the globe regarding the basics of the Bitcoin. Bitcoin can be simply separated into two components, Bitcoin-the-Token & Bitcoin-the-Protocol.
To understand Bitcoin completely, one needs to understand the core of both the aspects of this virtual currency. The Bitcoin-the-Token is a snippet of a code that gives the representation of the ownership of the digital concept. You can say that Bitcoin-the-Token is a sort of virtual IOU. Coming to the second aspect of the Bitcoin that is Bitcoin-the-Protocol. This protocol is a digital ledger of the balances of the Bitcoin-the-Token.
In general, both these aspects are referred to as a “Bitcoin” in general. Going ahead we here assume that you have got to the basic part of the question “What is Bitcoin”. Moving forward we will be also handing you over with the basic information regarding the complete Cryptocurrency named “Bitcoin” in the upcoming articles and blogs.
Points to Note –
- Bitcoin is the First Cryptocurrency.
- Bitcoin has two different aspects: Bitcoin-the-Token & Bitcoin-the-Protocol.
- Bitcoin follows regulations of Cryptography.
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