What is it Bitcoin?
Bitcoin can be defined simply as a digital currency and is usually referred to as the original cryptocurrency in the rapidly growing sector of crypto tokens and coins. Its main characteristic is that it functions in a completely decentralized manner, as there is no central authority governing the confirmation of transactions. As a result you will come to find out that it is neither backed by banks or governments, and is not valued based of precious metals. Its value is essentially inherent and intrinsic of the currency. In the grand scheme of things the Bitcoin network is a system of computers run by bitcoin owners and miners all over the world. They process the transactions by verifying their accountability and ensuring instant process system responses. This also enhances the systems security, a characteristic widely used through the online betting and gambling sectors alike. What makes bitcoin so attractive to this market in particular is the lack of processing fees, anonymity and decentralized characteristics.
History of Bitcoin
The story behind the introduction of bitcoin is quite mysterious and remains slightly unknown to this day. The Bitcoin network was officially launched in 2009 by an unknown developer who referred to himself using the pseudonym Satoshi Nakamoto. Along with the release of this new cryptographic currency Nakamoto also published a white paper explaining how the protocol works and an in depth overview of the network as a whole. Since this date in 2009 when the value was less than 10 cents, the Bitcoin network has grown immensely and so has its price.
While Bitcoins value is commonly known for its high volatility, it is important to mention that it is a completely speculative asset class as of 2018. At anytime it can suffer severe fluctuations as it is not supported by any central institution. Its use as a payment method for major betting websites is one of the contributors to this issue. Over time this volatility will be practically eliminated as the more people adopt the network and the number of bitcoins gets spread out over more people.
Fast forward to 2018 and there are Bitcoin esports betting sites waiting to accept your coins as a quick and easy form of payment!!
How Does Bitcoin Work?
Setting aside some of the technical details, Bitcoin works on a large distributed ledger, also referred to as a blockchain, where all transactions securely get confirmed and added to the ‘blocks’. As each block gets added to the chain of block (blockchain) it gets broadcasted to the peer-to-peer network of computers for validation. Essentially all users are aware of each transaction, which prevents any tampering, fraud, and double spending issues. This is the main reason blockchain users trust the system bitcoin is built upon.
Proceeding the confirmation process, no transaction can be reversed… by anybody. Since the network is based off predefined protocols instead of having a central authority verify the terms of the payment each transaction is irreversible after completed.
Traditional methods of online payment processing required several identifying information in order to proceed with a transaction. With Bitcoin neither transactions or accounts are attached to real world identities. You essentially are identified on the bitcoin network by a 30 character chain, acting as your Bitcoin address to a wallet or exchange. It is possible to assess and analyse the flow of transactions to see where certain coins came from, it is not necessarily possible to connect the real world user to these addresses.
- Fast and Global
With instant transaction times the Bitcoin network is considered the fastest payment processing network in the world in 2018. A network of computers disbursed all over the globe acts as verification to a transaction process happening literally anywhere in the world.
A common analogy that a bitcoin address is more secure than Fort Knox stands true to this day. After bitcoin funds get locked in a public key using cryptographic systems to secure. The owner is the only person with access to this private key and evidently is the only person capable of sending the cryptocurrency. Highly secure cryptography and magic of big number make is impossible to break this security measure.
You need no permission to use cryptocurrency as it is simply a software that anyone can download for free. After installed you can receive and send Bitcoins or any other similar blockchain related crypto currencies. No one can stop this process unless of course the internet get destroyed.
How to get Bitcoins?
If you are looking to become involved with cryptocurrencies and want to own some Bitcoin you will need to do one of three things all requiring some amount of initial capital. These two relatively straight forward ways include bitcoin exchanges, and peer-to-peer payment verification by means of ‘mining’ Bitcoin. Similar to regular trading platforms and exchanges, bitcoin exchanges run similar only they are entirely operated online. If you decide to straight up purchase some Bitcoin to use or to use as a store of value then you will need to choose the desired amount of Bitcoin and then provide the equal amount of fiat currency via credit card or debit card. The second way you could attain Bitcoin would be to purchase it from an individual and the process would be very similar to buying from any exchange and would require you have a Bitcoin address and a desired amount to purchase equalling the amount of fiat needed.
The third way to get your hands on Bitcoin is by mining it. This is a very specific process and one that is mandatory for the network to continue verifying transactions. It is is done by people all over the world who set up specifically designed mining rigs or mining pools that solve cryptographic algorithms that verify digital currency transactions using bitcoin. Since the currency is entirely digital it is solely dependant on digital keys in order for 100% security. Meaning that in order to secure transactions without a central authority governing the transaction there are all kinds of mathematical tasks needing resolution in order for quick transactions. Bitcoin miners use their powerful robust PCs, hardware, and software to solve these tasks, and in return are rewarded Bitcoin known as the miner fee.
Where to Store Bitcoin?
Considering Bitcoin is intangible will help you understand and comprehend the fact that it needs to be kept somewhere digitally. This is where e-wallets come in handy. They have been used even before the existence of bitcoin but have now advanced and adapted to hold certain types of cryptocurrencies such as Bitcoin. Even in the early stages of adoption there are several kinds of bitcoin e-wallets which allow you to choose the storage method of preference to securely hold your Bitcoins.
E-wallets come in the form of online wallets, offline using software, or completely separate on a hardware device. Now a days each option is considered very reliable and is up to the owner to choose which type of storage they prefer. Both online and offline e-wallets are subject to hackers, however we have listed some of the most trusted Bitcoin wallets here that offer the highest security protocols. Hardware wallets come with their own risk as they can be easily damaged or lost, which would mean you would lose every bitcoin you had stored on the piece of hardware.
12 May, 2021