Created by an unidentified person or group using the pseudonymous name Satoshi Nakamoto, Bitcoin is the first variant of cryptocurrency. The cryptocurrency free btc is a virtual currency that is secured by cryptography and is not issued or regulated by any central body or government.
How can one get Bitcoin?
- One can buy Bitcoin using real money. Similar to the share market, bitcoin values fluctuate, and change daily.
- One can get free btc as a reward by making their computer or system process Bitcoin transactions for everybody. This process is called mining.
- Bitcoin can be created using computers.
- Bitcoins can be exchanged for real goods, services, cash.
How do Bitcoin works?
Bitcoin runs on Blockchain technology. As implied by the name itself Blockchain is a technology where data is stored in blocks format and is managed by clusters of computers using cryptographic principles. A user creates a block of data and initiates the process. The block is passed to each node of the computer over the network of clusters securely using various cryptographic principles where each node verifies the authenticity of the block of data using various cryptographic principles. Once the block is verified it is added to a chain (i.e public record) along with unique history and record.
Using the above model a user can create a Bitcoin address (data block) using computers or Bitcoin wallets which are provided by Bitcoin service provider. Each time user creates a Bitcoin a new address is generated and is passed and verified by the network of computers and once the address is verified they are stored on a public ledger thus allowing Bitcoin wallets or service providers to verify the new transactions. Thus one can send or receive bitcoin securely in this manner by sharing the bitcoin address.