What is?
Bitcoin is a form of digital currency, created and held electronically. This is currency allows peer-to-peer (P2P) transactions – from people, to people, to people.
How it works?
Bitcoin is used exclusive electronic, can be trade digitally to dollars, euros or other type of currency and is used to but things.
To send bitcoins through blockchain, you need a specific key– public or private, that encrypt the transaction. So, the receptor has the key to uncryptic the key. Anyone can access the bitcoin network via an anonymous connection and can submit or receive transactions revealing nothing more than his public key. However, if someone uses the same public key over and over, it’s possible to connect all the transactions to the same owner. If you have a private key, only the owner and the receptor have it, so it just can be used one time.
The bitcoin network allows you to generate as many wallets as you like, each one with its own private and public keys.
This money is unconventional because no institution controls bitcoin network, so it is considered decentralized.
How we use it?
To do the transactions, it is necessary to have an application- Bitcoin Wallet on your smartphone or access that on the computer.
To do the transactions, it is necessary to have an application – Bitcoin Wallet on your smartphone or access that on the computer.
Characteristics:
- Global Payments: It allows you to make payments anywhere in the world and can be sent to anyone.
Instant Transactions : Allows the sending of money directly to the recipient without a bureaucratic process occurring.
- Low Cost: Transaction cost is minimal, making the transfer more feasible and secure.
Transparency: You can see the transaction and the amounts on the blockchain.
- Reverse: It is not possible to reverse a transaction
- Wallet: This digital currency is held on a wallet. This wallet shows the balance and the account. If the wallet is lost, the bitcoins are lost forever.
Sources: CoinDesk | BitcoinPortugal