Fundamentals Of Cryptocurrencies & Bitcoin.
Cryptocurrency is a new kind of digital money used to exchanged agreed-upon values.
In essence cryptocurrencies are like any other currency, except it uses cryptography to secure transactions and control the supply of its native currency.
In contrast to fiat money that is printed and controlled by governments, a lot of cryptocurrencies like bitcoin function under a predetermined market cap, protocol and set rate. This means the programming behind it, only allows for a set amount to be mined and distributed over time; Helping avoid inflation and the decline value of the currency.
Cryptocurrencies such as Bitcoin are built on a decentralized peer to peer, open source network. Not one person or organization controls the network as the system requires consensus to allow any changes, or alteration to its algorithm.
Also the fees of using Bitcoins and cryptocurrencies are usually low and they serve as a practical alternative to send money across the globe, when compared to stablished services like Western Union.
Bitcoin pioneered the cryptocurrency space back in 2008, as decentralized virtual money that can be send from any place in the world to another, securely and for minimal to no fees.
Bitcoin came into existence after the publication of a white paper titled « Bitcoin: A Peer To Peer Electronic Cash System » created under the name of Satoshi Nakamoto.
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Seemly Nakamoto combined his own knowledge of peer to peer networks, with prior developments of the technology (like HashCash and B Money) to engineer a new practical, autonomous, decentralized electronic cash system that does not require central authority for currency emission, transactions validation or settlement.
The main innovation in nakamoto’s invention was the development of a distributed computation system known as the « proof-of-work algorithm » that conducts global transaction validation every 10 minutes, allowing the network to validate and come to consensus agreement about the state of each transaction.
Bitcoin was the first decentralized digital currency to use the blockading technology and after its proven record of success and practicality it has gain acceptance among both merchants and consumers.
All these positive factors about bitcoin and its large practicality have helped attract a lot of talent from the open source developer community, who are interested and willingly working to create applications and protocols to make it easier for everyone to use cryptocurrencies.The exciting news If you are reading this today is that the digital currency have not reach mass adoption yet. Is safe to say we are just scratching the surface for the potential of Bitcoins and cryptocurrency.