Home Business Insights & Advice A detailed history of Bitcoin and Bitcoin wallets

A detailed history of Bitcoin and Bitcoin wallets

by Sponsored Content
20th Apr 20 2:15 pm

Let’s start with a little history. Bitcoin was born in 2009 at the hands of a certain Satoshi Nakamoto, a somewhat mysterious character who now and then associates with the figure of some Koreans who say he is the actual creator of bitcoins, and then find a denial within a few days. We certainly know that behind the creation of bitcoin, there is Hal Finney, an American programmer who passed away recently, the first to have exchanged (with the creator) the first bitcoins.

Bitcoin is a Cryptocurrency, with cryptocurrency we mean a currency that allows transactions always traceable and verifiable performed in total anonymity between the payer and the recipient.

Bitcoin is a physically unprinted currency.  At any moment, to cover the national debt begins to print more money, causing the currency to collapse. Bitcoin does not exist in nature, is only digital, and is digitally created by a community of people through “mining.”

What is mining?

Do you want to know how to create Bitcoins, and then first know about mining? In practice, BitCoins are “extracted” using the computing power of a decentralized network, a set of several thousand nodes called “Miners” all connected but without a central base. The fact of not having a central node to keep the balance, paradoxically makes the network much more resistant, since if only one of the nodes were to be deactivated, the others would continue to function.

Through the computational power of the calculators, mathematical algorithms are executed (and solved) that unlock blocks every 10 minutes. Each block contains 25 Bitcoins.

Within each block or several blocks, it is possible to find the keys and identification codes of every single transaction that took place. All this takes place within the so-called BlockChain (read below what the Blockchain is).

Who is a miner?

Another peculiarity of bitcoin (and cryptocurrencies in general) is that anyone can become a miner (and miner) and extract bitcoins from the computing power of their pc or their “pc network.” You may be wondering then what a miner earns for his mining business, well, the miner gets a fee that allows him to pay the extraction costs and receive it as well. There are groups of miners organized in vast sheds with computers that work 24 hours a day.

Bitcoin currencies transfers

Bitcoin exchanges them with other people through the mobile app or a PC. Sending money is very easy with the help of btcrevolution.io. Just enter the numeric code that identifies the recipient’s “virtual wallet” and send the number of bitcoins.

Where are Bitcoins stored?

The Bitcoin wallet: Bitcoins are deposited or stored in a “digital wallet,” which exists in the cloud or on the owner’s computer. In practice, it is a sort of “old” bank account, which allows you to send and receive bitcoins, pay for goods, or simply keep them in your account.

How Bitcoin was born

As we said, BitCoin was created by a software developer, Satoshi Nakamoto, based on a mathematical algorithm with the idea of ​​making a free currency from any central authority, electronically transferable instantly and with very low or non-existent transaction rates.

Blockchain: What is it?

The Blockchain is a distributed database within which we find chained blocks. These blocks contain all the information on the transactions carried out, which are identified and marked through the timestamp.

How Blockchain works with Bitcoin

The Blockchain is a shared and public register in which all Bitcoin transactions scrupulously encrypted travel. A sort of ledger where you can check and verify all the purchases made.

A BitCoin transaction takes place within the BlockChain. In practice, each virtual wallet contains a key that identifies the owner through a mathematical algorithm; this key is made visible to everyone within the Blockchain 10 minutes after the transaction following the mining.

By using mining, transactions are confirmed and incorporated into a block of the Blockchain arranged in chronological order following specific cryptographic rules.

In this way it is impossible to cancel an operation previously performed or to modify it precisely because it entered the “chain”. Once came into a block of the Blockchain, the transaction will be recorded.

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