How Bitcoin and Other Cryptocurrency Works?

Bitcoin, Bitcoins, Cryptocurrency, Blockchain

Bitcoin is currently most popular currency in the world. Everyone has heard of this name at least once. But still many people how it actually works or other cryptocurrency works. People are continuously jumping into this blockchain oriented digital currency. A concept based on freedom in currency by Satoshi Nakamoto. No one knows who he is or even a person exists of this name or not.

Encrypted and Direct

Bitcoin transfer from one person to another with encryption so that it can’t be hacked or altered in the middle. So basically your transaction is always secured whenever it is made. End to end encryption let no third party interfere in between the transaction. Only sender and receiver will know about the transaction of the bitcoins because of this.

Also because of the encryption there will be no middle man unlikely to the bank. In bank where we transfer money under the nose of bank here you can send it directly to the receiver. It is a decentralized currency and it allows it to no requirement of bank for making transaction. Blockchain and Extraledger like online ledgers are used for this purpose.

Controls and Fee

Acquiring a credit card isn’t an easy thing for both customer and business end. Fee for a credit card is about 6% and this affects both ends. But on the other end bitcoin do all the transaction with so less fee. 6% is a lot of amount to charge as a fee if you use the medium so frequently.

Whenever you will try to make transaction with the bitcoin, you will be only one controlling it. You are owner and controller of your wallet solely. There will be no one stopping or making interference to your transactions of bitcoins.

Active for 24*7

Bitcoin is a digital currency and work on the internet connection. Because of this, bitcoin is accessible to anyone anywhere. Its server is secure and available to for their customers 24*7. That makes it flexible to use anytime.

Buy and Sale Bitcoin or Cryptocurrency

These cryptocurrencies can be bought and sold via any official currencies in the world. Also you can buy them via your credit cards. Just contact any online exchange near you and you can access them easily. Also you can turn your bit coin back to the real currency like dollar, euro, yen etc. There are several special ATM that do this exchange of money and bitcoin. Here you can either convert money into bitcoins and bitcoins back into money.

Wallets and Mining

Bitcoins and cryptocurrency are just words, there no physical existence of these currencies. Now if they do not physically exist, where would one store these? So the solution was to save them in the digital devices. These currencies are stored in your mobile, computer or tablet that is using a digital wallet. Digital wallet has ability to decrypt the transaction and show you your bitcoins.

These transactions are protected by some of the cryptocurrency members. These members are good with computing and programming skills. They keep your transaction protected but they can’t decrypt the transaction. For this work they are rewarded with few amounts of bitcoins. This whole process is called mining and these people are miners.

Basically if you see bitcoin and cryptocurrency, these are some independent currency that does not report to any government. Few countries may have banned bitcoins but still it is booming its place into the market. Because of its discreetness and decentralization it gives user a freedom in making transactions. If you are thinking of getting into this business with your own version of bitcoin then there are several of IT Service provider companies those can help you.

Facebook Comments

You may be interested

How Social Media Affects the World of Sports
Social media
0 shares42 views
Social media
0 shares42 views

How Social Media Affects the World of Sports

moondela - Nov 26, 2018

Social media has a powerful influence on the modern world in numerous ways. The flow of information, ease of communication, and impact on people’s habits are just…

Computational Intelligence can curb crime: Experts at 4th International Conference on Next Generation Computing Technologies, UPES
Computing
0 shares38 views
Computing
0 shares38 views

Computational Intelligence can curb crime: Experts at 4th International Conference on Next Generation Computing Technologies, UPES

moondela - Nov 26, 2018

Computational Intelligence (CI) is an emerging area in fundamental and applied research, exploiting a number of advanced information processing technologies In total 115 quality research papers were…

How is Technology Benefiting the Education Sector?
Education
0 shares170 views
Education
0 shares170 views

How is Technology Benefiting the Education Sector?

moondela - Aug 23, 2018

Technology is playing a major role in the society and has become crucial for almost all sections. In the recent years, technology has proved its importance in…

Most from this category