It all came to form back in 2008, when a domain by the name of bitcoin.org was established. Shortly after the online formation was built, an anonymous character by the name of Satoshi Nakamoto introduced an announcement titled “Bitcoin: a peer to peer electronic cash system”. This mysterious paper spread out amongst a cryptography mailing list and from then on, the rest is history.
What is Bitcoin?
Bitcoin is a self-maintained software program which runs upon an open code platform, and keeps digital ledgers of financial transactions. The phrase “Bitcoin” also refers to the titled token itself, which is the first cryptocurrency of use for authorized payment transactions on the web. The usage of this platform is free and open to everyone, allowing users all over the world to perform wide range buying and selling deals. This platform is massively growing in the past decade, enabling verifiable exchange of virtual money transferred through an independent electronic infrastructure. This encrypted interface exists on a gigantic data base, which is running on elaborated mathematical algorithms.
What Are the Advantages of Such Digital Platform?
One of the main strengths of Bitcoin is that it is exists without dependence of one singular institution. This decentralizing method of operation is highly attractive to financial establishments and individual persons who don`t trust the traditional banking system with their money.
Another advantage of this currency formation lies in its own limited amount of tokens. The initial coin offering of Bitcoin presented a total of 21 million coins, and no more. What does it actually mean? Well, where there isn’t any option to issue endless currencies, the system maintains inflation control. Counter to Fiat money that have endless supply of constantly issued currencies, Bitcoin code restrains additional supply of its tokens. That way the value of the coin rises and becomes a desired asset. Why? Because in reality its demand grows in time, but the initial amount does not. The result proves a high value rate without losing track of existing tokens.
No Need for Procedural Identification
The special nature of the Bitcoin exchange platform allows users to perform transaction without the need of identifying themselves throughout a long, bureaucratic procedure. There is a short initial identification entrance request, just to make sure the user is not utilizing this platform in malice. As this system operates in an autonomic manner, there is no need for users to expose their personal details in order to participate. The reassuring aspect of it all reflects in the transparency of the entire operation of the platform, as transactions are visible for everyone. This way, together with basic regulation enforcement the system provides, users can trust that money transferring is legit.
Although the identity of bitcoin`s founder may still remain in part obscure, there isn’t any doubt regarding the breakthrough of one of modern technology`s most life changing phenomena.