As a result, blockchain-based systems have no single point of failure and are more resistant to outages than traditional banking systems. Bitcoins didn’t invent blockchain technology-it’s been around since 1991-but the software it uses to operate on blockchain technology makes Bitcoin so revolutionary.

Bitcoin is a decentralized currency, meaning there is no central transmission point. There are two ways people can get Bitcoins: purchasing them using traditional money and earning them by completing tasks on their computer, usually solving very complex math problems.

The Bitcoin system was designed to be as open-source as possible, with the hope that this would help address any issues in the future with Bitcoin’s development. The process through which Bitcoins are created involves having computer hardware compete with one another in solving very complex math problems. Since there is a finite supply of Bitcoins, mining becomes more difficult as more and more people try to solve math problems.

Features Of Bitcoin

Bitcoin is a virtual currency, the value of which fluctuates rapidly and unpredictably. No government or person does not controls bitcoins. While this is a significant advantage of Bitcoin, it can also be a disadvantage to those who want to get involved in Bitcoin with the hope that its valuation will only go up.

Distributed

A system is distributed if it is not controlled by one central authority. Bitcoin is a distributed system because no single entity controls it. Instead, the control of Bitcoins is spread across a network of thousands of computers worldwide with no central authority. Each computer in this network runs software that ensures no one can spend Bitcoins they do not have access to.

Transparent

A transparent system has no secrets; everyone involved can see everything at any time. In Bitcoin, everything is publicly visible, and the balance of every wallet can be seen by anyone who can scan the Bitcoin network. This open network of computers also verifies the validity of each transaction.

Peer-To-Peer

A peer-to-peer system is one where two computers can transact with each other without having to go through a central server. This way, no single computer keeps track of all transactions and balances, reducing vulnerability to hacking or mismanagement. In Bitcoin, many wallets can transact without going through an intermediary.

Permissionless

A permissionless system is one where anyone can get involved; permission is not required. In Bitcoin, anyone with access to the Internet and a computer or smartphone can own or use Bitcoins by setting up their wallet and obtaining Bitcoins from others.

Pseudonymous

A pseudonymous system is one where you do not have to link any of your identity records to your account or activity. Anybody can run a wallet that has no way of being associated with them. People use pseudonyms when referring to their wallet instead of their actual name.

Censorship-resistant

A censorship-resistant system is one where nobody can prevent others from accessing some service or information. This is why Bitcoin’s network exists on every computer that runs the software to make up Bitcoin’s network. Nobody can stop this protocol from living by simply deleting one copy of it, like they could on a website on their computer.