Bitcoin is a digital asset as well as a payment system that was introduced on 31 October 2008, and released as open-source software in 2009. Moreover, the program was created by a programmer, or group of programmers, that are still until now unidentified. In fact, the program was first appeared under the name of Satoshi Nakamoto.
Who is Satoshi Nakamoto?
In the matter of fact, multiple high profiled people have claimed that they are Satoshi Nakamoto. However, none of them has provided a certain proof that backup the claim that he or she is the person behind Bitcoin.
How does Bitcoin work?
The inventor made the system easy to use. Moreover, it is designed so that transactions happen from peer-to-peer, and between users without the need of an intermediary such as banks and money transfer offices. In fact, this system and your money are both safe, since all the transactions you make will be verified by specific network nodes as well as recorded in a public ledger that is distributed and called the “blockchain”.
Moreover, blockchain uses bitcoin’s system as its unit of account. After its major success, Bitcoin is now, the largest of its kind when it comes to total market value.
How is a transaction made?
For transaction validity, there must be one or more inputs. Moreover, every input should be one that consists if an unspent output of a previously made transaction. Additionally, when you use multiple inputs, it means that you are using multiple coins in a cash transaction. In fact, a good thing is that one transaction can as well have multiple outputs, which allows the person to make multiple payments in one go.
The legal status of bitcoin varies from a country to another. Moreover, there are some countries where bitcoin’s rules are still changing, or the system itself does not even exist.