Bitcoin is a peer-to-peer electronic cash system with no trusted third party, with an expectation to solve the double spending problem that many programmers had been failed to deal with. Bitcoin was the first cryptocurrency that applied blockchain technology.
Transactions are being processed without intermediaries. It was checked and verified by the network of nodes through the use of cryptography that solves by the miners. Once it was reviewed and verified, it will be recorded in the public ledger called blockchain.
Characteristics of Bitcoin
Bitcoin is a decentralized system, means no central authority controls it. It was operated and maintained by a group of volunteers in the network called “Miners.” The advantage is since it has no central authority controlling it and it was distributed, meaning it is hard to be hack.
There is no interference or administration from any third party in a decentralized system, which means no tax, no administration, less time and fewer fees.
- Limited Supply
Unlike other cryptocurrencies, Bitcoin has only a limited supply which is 21,000,000 BTC. As of now, there are 17,322,437 BTC circulating amount in the network based on Coinmarketcap.com.
Since bitcoin is using Blockchain Technology, it means that, once the transaction is done and added to the chain, it cannot be change or either reverse as opposed in the traditional payment system that anytime and anyone can change the record.
Traditional payment system requires an identity verification before conducting a transaction which differs from Bitcoin. By utilizing the blockchain technology, users don’t have to give any personal information to create an account or to perform a transaction. Users will provide their wallet address to process the transaction.
Official Website: https://bitcoin.org/en/