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What is Bitcoin?



Bitcoin is an innovative system, created by a stranger whose pseudonym is Satoshi Nakamoto in 2009, which makes it possible to check and transfer properties that rely on a non-centralized and unauthorized network. Bitcoin's initial application is a decentralized digital currency system. His unit is bitcoin.

Bitcoin operates through a protocol and software that gives miners the ability to issue bitcoins and perform transactions automatically and collectively. The source code that defines this protocol is free and open. Bitcoin can be used as a store of value, just like gold, but also as currency as a means of payment.

The designer of Bitcoin created it so that it self-regulates. It is limited to 21 million units which can be divided up to the eighth decimal place. The organization of the operation of the exchanges is public, everyone can check the transactions made. Whether the discussions between developers, the cryptographic algorithms involved in the mining, the programs that apply the protocols, everything can be examined in detail.

A succession of numbers and letters form a virtual key and symbolize a possession of bitcoins. This key can be used to make an expense. A Bitcoin Wallet can act as a storage for virtual keys. This portfolio can be found either in a web interface, in a software or in hardware capable of connecting to the network in order to undertake transactions. We can see what is the balance in bitcoins available, what are our public keys to receive payments. These keys are associated with other private keys that must remain confidential.

To get bitcoins, a person who owns them has to send them in exchange for a product or a service. Or by converting money into a virtual key through an exchange platform.





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