What is Cryptocurrency?
What is bitcoin?
Bitcoin is a decentralised Crypto currency . It is a worldwide payment system with no central bank or single administrator. This works through a peer to peer network and users make transactions directly with one another. All transactions are verified through a network of nodes through the use of cryptography and then recorded on a distributed public ledger called the blockchain. There can only ever be 21 million whole bitcoins but it can get broken down into smaller amounts called satoshi’s. The idea of limiting the supply of bitcoin is that they will increase in value over time. No one knows who the creator of bitcoin is, he went by an alias Satoshi Nakamoto. On the 18th of August 2008 the domain name bitcoin.org was registered but the bitcoins open source code wasn’t released till January 2009.
“Virtual currencies, perhaps most notably Bitcoin, have captured the imagination of some, struck fear among others, and confused the heck out of the rest of us” Thomas Carper
On the 22nd of May 2010 Laszlo Hanyecz made the first real world transaction buying 2 pizzas for 10 000 bitcoin’s worth a small fortune today.
If you want to buy bitcoin and other crypto currencies the link will be below. It is an Australian company based in Melbourne. Great for beginners and easy to use:
What is the block chain?
The block chain just like its name is a series of blocks that contains and stores data. The block chain was invented by Satoshi Nakamoto in 2008 for the use of crypto currency. It is a distributed ledger that is open to any one and everyone to see. Once something is stored on the block chain it is virtually impossible to change, if one block gets altered or hacked it will cause all blocks on the peer to peer network to change making them invalid. All computers need to validate each transaction or alteration. The block chain is protected by hashing and proof of work. It is synchronised in a trustless way amongst a large network of computers, all data is stored amongst the network of computers at once. Using its distributed trustless consensus and proof of work all parties can see transactions as the occur on the network and verify that the chain is intact. Block chain is the answer to real world problems and companies like IBM are currently experimenting with this technology.
What is Crypto Currency?
Just like Bitcoin there are other digital or virtual currencies designed to use as a medium of exchange. Like Bitcoin they use cryptography to secure and verify all transactions. There are now many online and offline businesses that will accept crypto currencies as payment. There are many different currencies such as Litecoin, Ethereum, Ripple and Verge. There is plenty of youtube videos talking about different crypto currencies, Bitcoin and the block chain. I would highly recommend learning as much as possible. To get started purchasing crypto currencies this Australian company based out of Melbourne makes it really easy for beginners to get started, check it out here: