Introduction to Bitcoin
Bitcoin is a form of cryptocurrency composed of complex codes generated by computers. It was officially created on January 3, 2009, by an individual or group using the pseudonym Satoshi Nakamoto.
Features
- Decentralization: Bitcoin does not rely on specific monetary authorities for issuance; rather, it is produced through extensive computing and uses a distributed database made up of numerous nodes in a P2P network to confirm and record all transactions.
- Security: Bitcoin employs cryptographic design to ensure the security of all processes involved in currency circulation, guaranteeing that only the true owners can transfer or pay with Bitcoin.
- Anonymity: During Bitcoin transactions, outsiders cannot identify user identity information.
- Limited Supply: The total supply of Bitcoin is capped at approximately 21 million.
Operational Mechanism
- Blockchain: The blockchain is a shared digital ledger containing records of all Bitcoin transactions. Recent token transactions are grouped into "blocks" by miners, which are cryptographically secured before being linked to the existing blockchain.
- Mining: Mining is the process of adding each block to the existing blockchain. Once a block is added, new token units called "block rewards" are issued. Miners can directly inject these units into the market.
Usage
Bitcoin can be used to purchase virtual items and real-world goods, as long as there is someone willing to accept it. It can also be exchanged for the currency of most countries.
