What Are Bitcoins, Working of Bitcoins, How Bitcoins Work, Bitcoins Systems and Risks, Digital...
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Tweet 2 8 Post By Simply Decoded (339 Posts ) Making sense out of chaos in this Complex World & helping people in understanding things in a better way. Website: → CONNECT Tweet 2 8 Bitcoin : Decoded November 29, 2013 - Decoded, Economics and Business , International, Miscellaneous - Tagged: Bitcoins Systems and risks , Digital Currency , How Bitcoins work, What are Bitcoins , Working of Bitcoins - no comments Virtual currencies, or digital cash, are gaining popularity as a new way to purchase goods or services. They are not regulated or issued by a central bank. The most popular virtual currency is Bitcoin, which gaining popularity these days. What is Bitcoin? It is a digital currency that is created and exchanged independently of any government or bank. The currency is generated through a computer program and can be converted into cash after being deposited into virtual wallets. When Bitcoin was launched? In 2008, a programmer known as Satoshi Nakamoto – a name believed to be an alias – posted a paper outlining Bitcoin’s design and later in 2009 released software that can be used to exchange Bitcoins using the scheme. That software is now maintained by an open-source community coordinated by developers. How does Bitcoin work? It exists through an open-source software program and its supply is controlled by a computer algorithm. Once you download and run the Bitcoin client software, it connects over the Internet to the decentralized network of all Bitcoin users and also generates a pair of unique, mathematically linked keys, which you’ll need to exchange Bitcoins with any other client. One key is private and kept hidden on your computer. The other is public and a version of it dubbed a Bitcoin address is given to other people so they can send you Bitcoins. How Bitcoins are generated? The process of generating Bitcoins is quite complicated and involves solving complex algorithms and sharing the solution with the entire network. The “mining” is very computationally intensive and requires powerful computers. How to transfer Bitcoins: When you perform a transaction, your Bitcoin software performs a mathematical operation to combine the other party’s public key and your own private key with the amount of Bitcoins that you want to transfer. The result of that operation is then sent out across the distributed Bitcoin network so the transaction can be verified by Bitcoin software clients not involved in the transfer. How to trade Bitcoins: Exchanges like Mt. Gox provide a place for people to trade Bitcoins for other types of currency. Payments to a merchant who accepts Bitcoins are made from the wallet application, either on your computer or smartphone, by entering the recipient’s address, the payment amount. Who controls the Bitcoin network: It is controlled by all Bitcoin users around the world. While developers improve the software, they can’t force a change in the Bitcoin protocol because the virtual currency can only work correctly only if there is a consensus among all users. Bitcom transactions: At the end of August 2013, the value of all Bitcoins in circulation exceeded $1.5 billion with millions of dollars worth of Bitcoins exchanged daily, according to Bitcom website. HOME SECTIONS OPINIONS DECODED OUR GROUP JOIN US TOP NEWS THE BOOK SHELF 17 people recommend this. Be the first of your friends. Recommend Share 17 Like 17 Like Is the Proactive Judicial Activism diluting the basic structure of the Indian Parliamentary system? Join the Debate Search Simply Decoded 6,914 people like Simply Decoded. Facebook social plugin Like Join 1417 other subscribers via Email Email Address Subscribe Other Useful Articles: Revenue Deficit & Fiscal Deficit Summary of 13th Finance Commission Report 12th Five Year Plan and New Targets Summary of approved 12th Five Year Plan Income Through Launching of Satellite Current Account Deficit & India Different Writs and their Importance Indian Preamble and its Importance Capitalism, Socialism & Communism : Introduction MGNREGA: An Introduction Categories Decoded Economics and Business
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Transcript of What Are Bitcoins, Working of Bitcoins, How Bitcoins Work, Bitcoins Systems and Risks, Digital...
-
Tweet 2 8
Post By Simply Decoded (339 Posts)
Making sense out of chaos in this Complex World &
helping people in understanding things in a better way.
Website:
CONNECT
Tweet 2 8
Bitcoin : DecodedNovember 29, 2013 - Decoded, Economics and Business, International, Miscellaneous - Tagged: Bitcoins
Systems and risks, Digital Currency, How Bitcoins work, What are Bitcoins, Working of Bitcoins - no comments
Virtual currencies, or digital cash, are gaining popularity as a new way to purchase goods or services. They
are not regulated or issued by a central bank. The most popular virtual currency is Bitcoin, which gaining
popularity these days.
What is Bitcoin? It is a digital currency that is created and exchanged independently of any government or
bank. The currency is generated through a computer program and can be converted into cash after being
deposited into virtual wallets.
When Bitcoin was launched? In 2008, a programmer known as Satoshi Nakamoto a name believed to be
an alias posted a paper outlining Bitcoins design and later in 2009 released software that can be used to
exchange Bitcoins using the scheme. That software is now maintained by an open-source community
coordinated by developers.
How does Bitcoin work? It exists through an open-source software program and its supply is controlled by a
computer algorithm. Once you download and run the Bitcoin client software, it connects over the Internet to
the decentralized network of all Bitcoin users and also generates a pair of unique, mathematically linked
keys, which youll need to exchange Bitcoins with any other client. One key is private and kept hidden on
your computer. The other is public and a version of it dubbed a Bitcoin address is given to other people so
they can send you Bitcoins.
How Bitcoins are generated? The process of generating Bitcoins is quite complicated and involves solving
complex algorithms and sharing the solution with the entire network. The mining is very computationally
intensive and requires powerful computers.
How to transfer Bitcoins: When you perform a transaction, your Bitcoin software performs a mathematical
operation to combine the other partys public key and your own private key with the amount of Bitcoins that
you want to transfer. The result of that operation is then sent out across the distributed Bitcoin network so
the transaction can be verified by Bitcoin software clients not involved in the transfer.
How to trade Bitcoins: Exchanges like Mt. Gox provide a place for people to trade Bitcoins for other types of
currency. Payments to a merchant who accepts Bitcoins are made from the wallet application, either on your
computer or smartphone, by entering the recipients address, the payment amount.
Who controls the Bitcoin network: It is controlled by all
Bitcoin users around the world. While developers
improve the software, they cant force a change in the
Bitcoin protocol because the virtual currency can only
work correctly only if there is a consensus among all
users.
Bitcom transactions: At the end of August 2013, the
value of all Bitcoins in circulation exceeded $1.5 billion
with millions of dollars worth of Bitcoins exchanged
daily, according to Bitcom website.
HOME SECTIONS OPINIONS DECODED OUR GROUP JOIN US TOP NEWS THE BOOK SHELF
17 people recommend this. Be the f irst of your friends.Recommend Share
17Like
17Like
Is the Proactive Judicial Activismdiluting the basic structure of theIndian Parliamentary system? Join theDebate
Search
Simply Decoded
6,914 people like Simply Decoded.
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Like
Join 1417 other subscribers via Email
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Subscribe
Other Useful Articles:
Revenue Deficit & Fiscal Deficit
Summary of 13th Finance Commission
Report
12th Five Year Plan and New Targets
Summary of approved 12th Five Year Plan
Income Through Launching of Satellite
Current Account Deficit & India
Different Writs and their Importance
Indian Preamble and its Importance
Capitalism, Socialism & Communism :
Introduction
MGNREGA: An Introduction
Categories
Decoded
Economics and Business
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