Bitcoin & Blockchain- Overview

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Bitcoin & Blockchain- Overview. Back in 2013, Bitcoin broke into the market as a digital currency that could be used to purchase a number of items. Its original conception may date back as far as 2009 when it was created by an unknown person who is known only by the alias, Satoshi Nakamoto.

What is Bitcoin?

Bitcoins are used to purchase items anonymously and has been identified as a cheap and easy way to make international payments. This is due to the fact that bitcoin is not tied to any particular country and is not being regulated at this time.

To acquire bitcoin, marketplaces have been set up online known as Exchanges, and in this marketplace, individuals can buy or sell Bitcoin along with many other Altcoins. The biggest downside to these Exchanges, however, has been security.

When you purchase bitcoins, they are then added to your digital wallet. The digital wallet is located either in the cloud or your computer.  In terms of security, when the digital wallet is in the cloud, you are subjected to possible hacking, and when the digital wallet is on your computer, you run the risk of accidentally deleting the wallet or losing it to a virus.

What is Blockchain?

While bitcoin transactions are listed in a public log, there is still a vast amount of anonymity because the names of the people making the transactions are not listed. All that is found in this digital log is the transaction and the individual’s wallet id. This means that it is not easy to trace anything back to the buyer or seller, which is why it is so popular as a digital currency online.

The digital ledger, otherwise known as Blockchain, is recorded both chronologically and publicly. The Blockchain is not something that can be controlled by a single entity, and it has no single point of failure. It is essentially a database of these recorded bitcoin transactions and this list is linked and secured by cryptography.

Bitcoin is continuing to rise in popularity and the price of bitcoin also continues to rise and is considered a strong financial asset to have.