Overview of bitcoin “Bitcoin is a consensus network that enables a new payment system and completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen .... bitcoin can also be the most prominent triple entry bookkeeping system in existence”[ CITATION bit \l 4105 ]. In simpler words, bitcoin is a digital form of currency born from technology. This technology started on October 31st, 2008 by Satoshi proclaiming the white paper named "Bitcoin: A Peer-to-Peer Electronic Cash System.” However, “The first Bitcoin specification and proof of concept were published in 2009 in a
The Emerging Role of Bitcoin – Fact and Fiction 5 cryptography mailing list by Satoshi Nakamoto.” No one knows much about Satoshi nakamdo as he left this project the following year. During his disclosure, he pooled a few basic creations, for example, b-cash and Hash Cash to understand a fulfilled regionalized electronic framework that didn't rely upon a central expert for money repayment and substantiation of exchanges. Bitcoin has more to it than just being the newest form of currency or exchange medium. As per the experts and investors bitcoin will be used as a technology for property transfer, contract creation, and as an electronic passport. Looking head into 2050 a time where technology will greater and unique than it is today, the dimension of Bitcoin will develop and evolve in a way that it be used by big companies, public and private sectors, government, and individuals[CITATION Sat \l 4105 ]. However, this innovation is also accompanied by its very own drawbacks. bitcoin is sensitive as PCs are hacked. this innovation is lacking in certain countries and might not be success full as some countries are behind in this technological race. How does bitcoin work As bitcoin uses public leader system, otherwise called block chain, which will utilize the cryptography for approving the exchanges. There is something called public key and private key, which are used by users for momentary exchange over the bitcoin app/wallet. “The public key tells senders the address of the wallet so that deposits (but not withdrawals) can be made to the wallet, and the private key unlocks the Bitcoin wallet so that Bitcoin can be withdrawn from it”[ CITATION Guz18 \l 4105 ]. Then there are “miners”, they are people who work behind the scene to make any transaction on the bitcoin app a success. The main task of the miner, as per figure 1 in the appendix, is to validate and check whether the payer has enough bitcoins
The Emerging Role of Bitcoin – Fact and Fiction 6 available for the transaction. Addition miners also create a unique code with some zeros, so the code is unique and unhackable. miners give their capacity to use PC in the trade for picking up the opportunity to have extra Bitcoins. After miner is done with his tasks, the notifications are sent to both payee and payer about the success of the transaction[ CITATION Low \l 4105 ].
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- Spring '17