Main » TERM » B » Bitcoin Bitcoin is a digital payment currency that utilizes cryptocurrency (a digital medium of exchange) and peer-to-peer (P2P) technology to create and manage monetary transactions as opposed to a central authority.The open source Bitcoin P2P network creates the bitcoins and manages all the bitcoin transactions.Often referred to as "cash for the Internet," Bitcoin is one of several popular digital payment currencies along with Litecoin, Peercoin and Namecoin.When the word Bitcoin is capitalized, it usually refers to the software and systems used for bitcoin (in lowercase it means the actual currency).Bitcoin History Bitcoin is considered the biggest cryptocurrency.It was first introduced in 2009 and is the most widely-traded cryptocurrency.Bitcoin as an implementation of the cryptocurrency concept was described by Wei Dai in 1998 on the cypherpunks mailing list.Dai suggested a new form of money that uses cryptography to control its creation and transactions, rather than a central authority.

In 2009, the Bitcoin specification and proof of concept was published in a cryptography mailing list by Satoshi Nakamoto.kurs bitcoin chfAs noted in the Official Bitcoin FAQ, Satoshi Nakamoto left the project in late 2010 without revealing much about himself.bitcoin lady diedHow Bitcoin Works Payments are made via a Bitcoin wallet application that resides on a user's computer or mobile device, and a person only needs to enter the recipient's Bitcoin address information and payment amount before pressing send to complete payment.bitcoin evolution marketplaceBitcoin Mining New bitcoins are created by a competitive and decentralized process called "mining".free bitcoin faucet bot

Bitcoin miners are processing transactions and securing the network using specialized hardware and are collecting new bitcoins in exchange.bitcoin calculator zarThe Bitcoin protocol ensures new bitcoins are created at a fixed rate, making the process of bitcoin mining a very competitive business.bitcoin guide wiredAccording to eWeek, efforts to improve Bitcoin mining are now under way, working under the basic assumption that the cheaper you can mine Bitcoins, the more money you can make.bitcoin palo altoBitcoin Security While attackers are going after Bitcoin-related sites, there is an important distinction between the security of the Bitcoin network and the Bitcoin exchanges.cày bitcoin, no one has ever found a critical vulnerability within the Bitcoin protocol itself that would allow a user within the Bitcoin network to fraudulently create coins or forge transactions.bitcoin mining co op

That said, there have been compromises of various Bitcoin exchanges throughout the virtual currency's lifetime, and as the value of a Bitcoin increases, so does the risk in using exchanges.PREVIOUSNEXT SEO Dictionary From keyword analysis to backlinks and Google search engine algorithm updates, our search engine optimization glossary lists 85 SEO terms you need... Read More » Slideshow: History of Microsoft Operating Systems Microsoft Windows is a family of operating systems for personal computers.In this article we look at the history of Microsoft operating... Read More » Slideshow: Interesting Facts About Google Search ... Read More » Java Basics, Part 1 Java is a high-level programming language.This guide describes the basics of Java, providing an overview of syntax, variables, data types and... Read More » Java Basics, Part 2 This second Study Guide describes the basics of Java, providing an overview of operators, modifiers and control Structures.

Read More » The 7 Layers of the OSI Model The Open System Interconnection (OSI) model defines a networking framework to implement protocols in seven layers.Use this handy guide to compare... Read More »Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto.Transactions are made with no middle men – meaning, no banks!There are no transaction fees and no need to give your real name.More merchants are beginning to accept them: You can buy webhosting services, pizza or even manicures.Bitcoins can be used to buy merchandise anonymously.In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation.Small businesses may like them because there are no credit card fees.Some people just buy bitcoins as an investment, hoping that they’ll go up in value.Acquiring Bitcoins Buy on an ExchangeSeveral marketplaces called “bitcoin exchanges” allow people to buy or sell bitcoins using different currencies.

Gox is the largest bitcoin exchange.TransfersPeople can send bitcoins to each other using mobile apps or their computers.It’s similar to sending cash digitally.MiningPeople compete to “mine” bitcoins using computers to solve complex math puzzles.This is how bitcoins are created.Currently, a winner is rewarded with 25 bitcoins roughly every 10 minutes.Owning Bitcoins Bitcoins are stored in a “digital wallet,” which exists either in the cloud or on a user’s computer.The wallet is a kind of virtual bank account that allows users to send or receive bitcoins, pay for goods or save their money.Unlike bank accounts, bitcoin wallets are not insured by the FDIC.Wallet in cloud: Servers have been hacked.Companies have fled with clients’ Bitcoins.Wallet on computer: You can accidentally delete them.Viruses could destroy them.Anonymity Though each bitcoin transaction is recorded in a public log, names of buyers and sellers are never revealed – only their wallet IDs.While that keeps bitcoin users’ transactions private, it also lets them buy or sell anything without easily tracing it back to them.