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Understanding Bitcoin and where do they come from

Understanding Bitcoin and where do they come from

by adminOctober 6, 2018

You may be wondering what Bitcoin is. You should rest assured it is not actually a coin. It would be best described as cryptocurrency. It is a digital form of payment that would be produced or mined by several people worldwide. It would enable you to have peer to peer transactions instantaneously, across the world and free or at relatively lower cost.

Bitcoin was invented after decades of research into cryptography by software developer, Satoshi Nakamoto. It has been deemed to be pseudonym. Satoshi designed the algorithm along with introducing it in 2009. However, the true identity of the creator still remains a mystery.

The currency has not been backed by a tangible commodity inclusive of gold or silver. Bitcoins have been traded online. It would make them commodity in themselves for playing bitcoin games.

It would be pertinent to mention here that Bitcoin has been deemed an open source product. It would be accessible to anyone who uses it. You would need an email address, internet access and money to get started.

Where does Bitcoin come from?

Bitcoin has been mined on a distributed computer network of various users running specialized software. The network would be solving specific mathematical proofs. It would be searching for specific data sequences or blocks that would be producing different patterns when BTC algorithm would be applied. A match would produce a Bitcoin. It has been deemed time-consuming, energy consuming and complicated process.

Only twenty one million Bitcoins were to be mined and out of that only eleven million have been currently in circulation. The mathematical problems solved by the network computers would be progressively more difficult for keeping the mining operations and supply in check.

This network would also be required to validate all kinds of transactions made through cryptography. It has been largely popular and used in Bitcoin Casino.

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