Bitcoin is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on a peer-to-peer bitcoin network without the need for intermediaries.
How does bitcoin work?
When you are new to use this cryptocurrency,then you can get started with bitcoin and you don’t need any technical support to use bitcoins. Only you need to install a bitcoin wallet on your computer or mobile phone, it will automatically can generate your first bitcoin address then, you can create more whenever you need one. You can tell your address to your friends so that they can exchange their or transfer currency. In fact, it is very similar to how email works, except that bitcoin addresses should only be used once.
Balance – Block Chain
A block chain is a shared public account on which the entire bitcoin network relies. All confirmed transactions are included in the block chain. Block chain helps bitcoin wallets to calculate their spendable balance to verify the new transactions, The integrity and chronological order of block chains are implemented with cryptography.
Transaction – Private Key
A transaction is a transfer of value between bitcoin wallets that joins the block chain. Bitcoin wallets has a private key or a secret piece of data which is called as a seed, which is commonly used for sign transactions, and providing mathematical proof that they came from the owner of the wallet. The signature also prevents anyone from changing the transaction once it is issued. All transactions are transmitted over the network and usually begin to be confirmed within 10–20 minutes through a process called mining.
The Bitcoin payment system is completely peer-to-peer, meaning that users are able to send and receive payments to or to any network worldwide without the need for approval from any external source or authority.
Benefits of Bitcoin
Now that we have seen a brief overview of bitcoin, we can better understand how this major cryptocurrency provides potential benefits to its users.
The primary draw of bitcoin for many users, and indeed more commonly one of the central principles of cryptocurrency, is autonomy. Digital currencies give users more autonomy over their own funds, at least in theory than Fitian currencies. Users are able to control how they spend their money without having to deal with an intermediary authority such as a bank or government.
Bitcoin shopping is discrete. Until a user voluntarily publishes his bitcoin transaction, his purchase is never linked to his personal identity, much like a cash-only purchase, and is not easily detected. . In fact, the anonymous bitcoin address generated for user purchases changes with each transaction. This is not to say that bitcoin transactions are actually anonymous or completely unrecoverable, but they are far less easily associated with personal identification than some traditional forms of payment.
Elimination of banking fees
it is considered standard currency among cryptocurrency exchanges to charge nothing in the name of “manufacturer” and “taker” fees, as well as seasonal deposit and withdrawal fees, mostly bitcoin users are not subject to the litany of traditional banking fees associated with Fiji currencies.
Because users are only able to send and receive bitcoins with a smartphone or computer, bitcoin is theoretically available to a population of users without access to traditional banking systems, credit cards and other methods of payment.