Every couple of decades or so, a brand new ground breaking technology evolves. The automobile, electricity, and more recently the personal computer and the Internet. They seem to suddenly appear out of nowhere, the public remaining skeptical.
But know that the planning of any new technology isn’t new. There’s usually decades of research that’s gone into the concept, the planning, and the development of the technology. For our generation, it’s been the personal computer and the Internet.
They eventually become essential mainstream products that’s adopted by everyone, this once industry begins to commercialize them, and then everyone wonders how we ever survived without them.
So get prepared for the next latest and greatest technology which is crypto currency. This particular technology, its research and development has actually existed for a couple decades as well. Cryptography, which is the scientific theory behind the concept has existed for nearly half a century.
But most have only heard of Bitcoin recently, which is the most popular crypto currency. Since it’s so new, what it is or does remains misunderstood.
Welcome To The Crypto Currency Age Featuring Bitcoin
There’s currently a huge gap of knowledge in what crypto currency is, this between what the media claims, what the public thinks, and what the actual technology and industry of crypto currency actually is.
Bitcoin is the end result and the star attraction of a computer science project which has existed for years of study and research, the study of cryptographic currency, which is the invention of a secure form of virtual money exchange.
Bitcoin is a money transfer solution, an algorithm, which establishes iron clad secure virtual verification between between two unrelated, unknown parties or individuals, who can safely transfer money over a massively unregulated network such as the Internet.
So what Bitcoin does is it solves the problem of virtual anonymous secure money transactions, this for the very first time in Internet history. A valid method for one user on the Internet to be able to transfer this unique piece of monetary digital property to someone else that they don’t know, another Internet user, or whomever, and that transfer is guaranteed to be completely safe and secure.
Secure and verified because everyone on the Bitcoin crypto currency exchange knows that the transfer has taken place, while no one has the ability to challenge the legitimacy of the money transfer. This breakthrough when it comes to financial transactions on the Internet remains difficult to overstate.
Any possession that you own, whether it be digital or physical goods, anything that’s e-commerce related, such as a digital ebook, or any tangible product such as a car, the money to purchase these goods can now be transferred with complete anonymity and security using crytpo currency.
All of these virtual transactions are exchanged through a network which doesn’t rely on a central intermediary such as a government, broker, or banker.
What this means is just the owner of the crypto currency without interference can send it, while just the intended recipient can receive it. A particular crypto currency only exists at one place at a time, it can’t be duplicated, and everyone is able to validate the transaction along with its ownership anytime they want.
How Crypto Currencies Work
Bitcoin is a virtual Internet “bookkeeping” system that’s based on a ledger. You can claim ownership of a piece of Bitcoin on this ledger by obtaining one of its fixed number of slots.
You can do so by either paying for it with cash, or by selling something for Bitcoin money. You sell out of the ledger by transferring the Bitcoin that you own to someone else, who’ll then now own possession of that slot on the ledger.
Anyone in the world can anonymously buy into, or can sell out of the ledger any time they want, this without needing approval, or without paying a transaction fee.
The actual “coins” of the Bitcoin are the slots in the ledger, this similar to seats on a Stock exchange, except that they’re broadly applicable to all and any transactions.
A Secure Anonymous Payment System
The Bitcoin ledger is a completely new standalone secure payment system. Anyone regardless of where they are can pay anyone any amount of value in Bitcoin, this by transferring its ownership, which is identified by a string of unique numbers.
Once you place a monetary value on whatever you’re selling, such as you selling a software program for $50.00, once that value of Bitcoin is transferred to you, once you the recipient receives the exact value out, this without knowing who the sender is, the transaction is complete. The transaction is also available for anyone to see as it’s recorded on the ledger.
Where Can You Get Bitcoin
You’re able to start your own collection of Bitcoins from your associates on the Web, or from buying them directly with real money from the various Bitcoin exchanges. But what using real money to buy Bitcoin does is it defeats the purpose of this anonymity if that’s your purpose, this since you’ll need to include your bank account to a third party site to exchange funds.
New Bitcoins are created by a process which is known as mining. This mining process is executed automatically and virtually, and isn’t the conventional digging into the ground to dig up Bitcoin from the earth, but the concept is somewhat similar.
One unique characteristic about Bitcoin is that it derives its value from codes and not from real-world items. In a typical transaction, a buyer from a certain location decides to pay the seller with Bitcoin online, then what happens is that the miners will then race to authenticate and then encrypt the transaction, which involves logging the Bitcoin codes into a central server.
How You Can Use Bitcoin
If you’ve now got some Bitcoins in your possession, what you then need to do is store them in an online wallet, this through a third-party website or a computer program.
Now you’re a citizen of the Bitcoin network, this once you’ve created your own virtual wallet. In order to send Bitcoin to another user, this to pay for purchases, you’ll need to get that individuals identification number, and then transfer the Bitcoin online.
The processing of the transaction can take anywhere from just a few minutes to up to an hour, this because the various Bitcoin miners across the network needs to verify the transaction.
Bitcoin is far more tangible than the actual currency that’s stored in a bank account, as the wallet file that you create is just another document on your computer, which can also be moved around on different devices such as your smartphone.
The Bitcoin wallet itself has two parts: the wallet file which stores the Bitcoin, and the wallet application which is the Bitcoin client, which opens the wallet file.
Since the wallet is just another folder, this makes it possible to store the wallet file on a USB drive, which is recommended, then you can open it on any device which has the wallet application installed.
Welcome To Crypto Currency
Bitcoin, the preferred money choice of the digital geeks. Bitcoin is a pure mathematically derived currency form which promises to convert the way that people use money.
Bitcoin despite its name are not coins, but rather strings of code which are locked with industrial grade military precision encryption, and those who chooses to use Bitcoin to buy or sell goods, send or receive, remain completely anonymous and thus impossible to trace.
What it uses is an open source peer to peer networking foundation based on cryptographic proofs which conducts the transfer of currency value. The exchange of funds is controlled by recording digital transactions on the ledger.
Bitcoin is completely impossible to counterfeit. They are also thought to be disaster proof since you’re not able to destroy virtual numbers the same way that you’re able to destroy paper money, or laying your fate in crumbling countries and its currencies.