The Ultimate Guide to Bitcoin (Part 1)
Let’s analyse the technological advancement that fundamentally challenges your conceptual understanding of the above, and influences the way our economy, governance systems and businesses function. Trade · Ownership · Trust
Through the centuries, trade has become incredibly complex, especially in the context of globalisation. Trade is generally recorded in bookkeeping and this information is often isolated, and closed to the public. For this reason, we use third parties and intermediaries we trust, to facilitate and improve our trust. Governments, Banks, Accountants, Notaries are these trusted third parties.
In such a scenario, is your money truly yours? Trust is the fundamental currency of commerce. And lately, we’d lost it until a truly decentralisation currency emerged
Bitcoin Demystified for Novices Technically, Bitcoin is open-source software. It enables a network of computers to maintain collective bookkeeping via the internet, involving digital tokens called bitcoins. It is also a cryptocurrency — a digital asset designed to work as a medium of exchange, using cryptography to secure the transactions. Think of it as a substitute for the currency you currently use.
Bitcoin solves the famous issue with digital currencies "the double spending problem " by having a decentralized mechanism of validation, authentication and also bring in immutability referred as Blockchain
Blockchain is perhaps the most impactful and far reaching innovation to come out from bitcoin. It is a public ledger — a record of every transaction in history of bitcoin — including information on the date, time, participants, and amount of every single transaction. Each node (i.e a person connected to the bitcoin network) owns a full copy of the block chain.
On the basis of complicated mathematical principles, the transactions are verified by other people on the network — who we call Bitcoin miners who maintain this ledger. The mathematical principles also ensure that these people (or nodes) automatically and continuously agree about the current state of the ledger and every transaction in it.
Bitcoin Wallets How Bitcoin Payments Work A bitcoin wallet is a piece of software that is used to store and manage your coins. A transaction originates when your bitcoin wallet broadcasts it to the network — letting everyone know that it would like to send some coins to a person you’ve chosen. Once this transaction is verified by miners on the blockchain, it is complete and the coins are transferred.
Getting a Bitcoin Wallet There are plenty available online that you can choose from the official website. Setting one up on your computer involves downloading the client (the node), and setting a password to it. Remember to store this password in a safe place, as you’re unlikely to recover your wallet if you lose your password.
It’s much easier to set up your wallet on exchanges like Unocoin, of course. It also offers the added benefit Buying/Selling Bitcoins Systematic Buying Plan Recharge Mobile/DTH bills Wallet Top-Ups without having to go through the technical hassles of an offline wallet.