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BusinessWhat is Bitcoin? HOW WAS IT FOUND?

What is Bitcoin? HOW WAS IT FOUND?

Bitcoin digital currency chart

Have you heard of cryptocurrency? What about China Blockchain? Did you know that new technologies such as the Chinese blockchain can provide unparalleled services to the world? If you browse the news related to new technologies, you will surely come across hot news about this. Bitcoin is one of the most popular virtual currencies in the world these days.

You may have heard its name, but its meaning and what is not yet clear to you. If you stay with us until the end of this part of the Capital House, you will get rid of this passionate currency.

We suggest you also check out the article “Answers to 20 Questions About Bitcoin and Digital Currency”. In that talk, we’ve answered your possible questions about the world’s oldest digital currency.

What is Bitcoin Digital Currency? (Bitcoin)

What is Bitcoin Digital Currency? (Bitcoin)

Bitcoin is a virtual currency that gained a lot of popularity and prosperity when its price reached $ 13,000 in early 2018. This digital currency was a combination of creativity, overcoming legal barriers and eliminating intermediaries in various financial and banking affairs that made financial transactions possible at the international level. Therefore, in the short time of his emergence, he was able to attract a lot of attention.

After Bitcoin, many cryptocurrencies were born that had similar features. Cryptocurrencies have great features and capabilities, which is why they have become so popular over the last 10 years or so.

Cryptocurrencies operate in the context of large networks called “blockchains”. This network has a lot of users and it is not possible to access and capture its data.

“Extensiveness”, “large number of users”, “lack of possibility of network fraud and fraud” and “lack of network monitor” make it a free and effective environment for communication activities in various fields.

More precisely, “Bitcoin” operates in the context of the decentralized network of the Chinese blockchain.

Definition of Bitcoin

Bitcoin and other cryptocurrencies are lines of computer passwords that have monetary value. These cryptocurrencies are generated by powerful computers with high power consumption. Cryptocurrencies are also called “digital currencies”.

These currencies are a form of digital currency that is created by complex mathematical calculations. You may ask what “crypto” means in the word cryptocurrency and where does it come from? The word is derived from “cryptography”.

Cryptography is a process that protects the creation of new coins.

The important thing about digital currencies is the lack of central oversight. Simply put, no government, institution or body oversees these currencies and operates in a completely free, uncensored and unhindered network.

Different governments in different countries still do not know how to react to digital currencies.

Some of them seek to limit its effects by banning it, while others try to better understand it and make the most of it by recognizing its features and capabilities.

A brief journey into the history of bitcoin

What is Bitcoin Digital Currency? (Bitcoin)

Bitcoin is the first digital currency. No one knows who made it. Of course, this is not new. Because most digital currencies are produced in silence.

It is said that the creator of Bitcoin is a person named “Satoshi Nakomoto”. It is not clear whether Satoshi Nakomoto is really an individual or a group of people under that name who have created “Bitcoin”.

After the birth of Ramzarz, there was no news of Satoshi Nakomoto. Some time later, other different cryptocurrencies such as “LightQueen”, “Atrium” and. Were introduced to the world.

One of the main advantages of Bitcoin is that it can be stored offline on a secure piece of hardware. This is called “cold storage”. Despite the cold storage, the possibility of cryptocurrencies being stolen is reduced to zero.

Cold storage is the opposite of “hot storage”. Hot storage is a type of storage in which data is stored on the Internet, resulting in the possibility of theft.

Be sure to read this article: HOW TO MAKE NFT FOR FREE?

Why are digital currencies controversial?

There are many reasons for this; For example, from 2011 to 2013, criminals traded using bitcoin and made it famous. Lack of government oversight, undetectable activity, tax evasion, and… were some of the reasons why criminals turned to this digital currency.

As we have said before, governments have not yet been able to enact coherent laws on digital currencies. Therefore, issues such as taxation of these cryptocurrencies are not discussed.

“Scams” are also one of the reasons why cryptocurrencies were introduced in the world.

Scams are the traps that come in the form of legitimate users, especially newcomers or inexperienced, to trap them under the pretext of making a profit in the world of digital currencies.

Because the Chinese blockchain – the platform where cryptocurrencies are traded – allows people to communicate directly, intermediaries such as banks and financial institutions are no longer needed.

As a result, it is another factor that has made digital currencies so popular.

How does Bitcoin work?

How does Bitcoin work?

Bitcoin is a digital asset implemented on the Chinese blockchain network. Blockchain is an information sharing system in which everyone on the network has access to the information stored in the head office.

In the banking system, only the bank is aware of the transfer of assets and all its details, but in the Chinese block, this information is recorded in the central office, which is accessible to everyone.

In each share, the sender code, the recipient code and the amount sent are specified, it is registered in the office and it is possible to refer to it forever. The current size of Bitcoin office has reached more than 320 GB.

Each wallet has a strong security system consisting of two codes, a private key and a public key. Every transaction that takes place in the network of cryptocurrencies is signed with your private key, which is based on a very strong cryptographic system.

Note that only you have access to the private key, but once the transaction is registered at the head office, people can view that transaction based on the public key.

Let me give you an example:

If person “A” wants to make a transaction on the network – for example, send a unit of these cryptocurrencies to person “B” – he must notify the network of his request. The nodes receive the transaction, record it, and then send it to the nodes around them.

But nodes other than sending the transaction to the surrounding nodes must check the accuracy of the received transaction; For example, if person “A” wants to send 2 atrium units to person “B” but his property is only one atrium unit, the nodes will recognize this transaction as a defective transaction and this transaction will not be performed.

To do this, the nodes must refer to the transaction history. The person requesting the transaction to send an atrium unit proves by linking his previous transactions to the network that his inventory is at least one atrium unit.

The required amount of assets is checked once by the person who sent the transaction and once by the nodes. By doing so, the network will be safe from the risk of re-spending.

Having a digital currency in your wallet means that you have unspent transactions on the network.

What are the advantages of Bitcoin?

Being digital
Bitcoin is a completely virtual currency that has no physical equivalent. For this reason, you do not need any special space to store it.

It is transparent
All transactions of these cryptocurrencies are recorded in a general ledger that everyone has access to. Each wallet has a private key and a public key. The public key is visible in registered transactions. By referring to the head office, you can see the amount of assets.

It has high security
This cryptocurrency works on a blockchain network that is secured using special protocols. Nodes (both regular and minor nodes) approve or reject a transaction by following a series of specific commands. Extractor or miner nodes also play a key role in network security.

It is decentralized
Unlike common Fiat currencies in countries, digital currencies are not controlled by any organization or government. This feature can be considered as its strengths and weaknesses at the same time. Because of the lack of monitoring of this system, it is a good option for fraud; As if this has happened many times to this day.

High speed and low commission
The transfer of assets is done by these cryptocurrencies in a short time. However, if traders want to make international financial transfers, they have to wait a few days.

Moreover, the digital currency transfer fee is much lower than the Fiat currency transfer fee. Of course, with the increasing difficulty of the network, the fee for cryptocurrencies has also increased.

Guarantee the transaction
Transactions made in the Bitcoin network are not canceled in any way. For this reason, if you mistakenly send your passwords to someone you do not know, it is no longer possible to return your digital currencies. But if you know the person, your currencies will be returned just by sending the person again.

This feature has been added to the network to ensure the transaction. In this way, the recipient can in no way claim not to have received the passwords.

How is Bitcoin mining done?

The purpose of miners is to gain access to unextricated bitcoins and, of course, to secure the network. Miners are rewarded by generating blocks of valid transactions and connecting them to the blockchain. To prevent multiple blocks and network manipulation, only minor nodes have the right to build blocks.

All transactions in this digital currency are recorded in a central office that is accessible to all members of the network. Every 2,500 transactions are done in one block and that block is added to this office.

Some people in the network volunteer to add this block to the end of the network in exchange for a reward and update the head office information.

The Bitcoin system is designed to create a mathematical problem for each block with the help of the hash function. Each of the miners who can answer this problem sooner will be proud to add a block to the end of the chain.

A network node is a powerful computer that runs bitcoin software, participates in the data transfer process, and thus helps maintain the bitcoin network.

Nodes can be either miners or miners, or they can only play a role in maintaining network security and verifying transactions by sharing their system.

At the beginning of the cryptocurrency, all nodes acted as miners. As time went on and it got harder, the miners tried to win the competition using graphics cards, but gradually the graphics cards did not succeed.

Miner nodes were forced to use special hardware devices that were only produced for extraction.

Competition in mining

Today, competition for extraction has become very tough. Even people who had strong hardware devices now have little chance of competing. Hence, we are witnessing the emergence of extraction pools. In fact, by sharing their hash power, miners agree to increase their chances of making a profit by earning less.

To work as a miner, you must pay attention to the alertness of the miner device. Does this mean that your miner has the power to guess how many answers per second?

The next thing to consider is what power consumption of your miner device is?

The price of electricity in the country where you live is also one of the things that you should consider when deciding to work in this field.

Of course, if you want to work in the extraction pool, you must also pay attention to the fee that the pool demands from you.

A new block is created every 10 minutes. If the hash power of a miner device is so high that it can find the answer to the problem in, say, 6 minutes, it creates a mess in the network. Because of this, the difficulty of the network was embedded in the bitcoin network.

The network updates the difficulty by measuring the processing power of the miners present in it almost once every 2 weeks.

What is Ninety Bitcoins?

China Blockchain is a decentralized technology that is not monitored by any government, organization or individual. Despite all the benefits of this system, without a regulatory body, the validation of operations performed on the network may be disrupted.

Nodes in the Bitcoin blockchain network play the role of the same regulator; But because China blockchain technology is decentralized, all networked systems do this, and monitoring is not the sole responsibility of one person or organization.

Nodes – Any computer that connects directly to the network and receives the head office – in the blockchain network are responsible for ensuring decentralization as well as turning the blockchain into a secure platform for network transactions.

In order for nodes to be able to monitor and verify transactions, they must install the program on their system and connect to other nodes or systems connected to the network so that the network can use their system power to validate and verify transactions.

Ordinary users can trade digital currencies by having a wallet and creating an account at a reputable exchange.

Who is the founder of Bitcoin?

It was in the midst of the 2008 US recession that an unknown individual or group nicknamed “Satoshi Nakamoto” sent an article to a group of cryptographers.

Satoshi Nakamoto is both real and unreal; In other words, he can be compared to a ghost in the digital world.

but why? Satoshi Nakamoto wrote the Bitcoin code in 2007 and released it on White Paper in November 2008. In 2008, the website Bitcoin.org was launched under his name. Satoshi Nakamoto also published an article entitled “Bitcoin is a Peer-to-Peer Electronic Cash System”.

Satoshi Nakamoto was active in developing the Ramzarz project until 2010. In 2010, Gwyn Anderson took charge of the project, and Satoshi Nakamoto disappeared.

His identity is said to be that of a Japanese man born in April 1975.

Of course, Satoshi has used British English in his published works without any objections. This raises some doubts about his Japanese identity.

On the other hand, given the timing of Satoshi’s posts, it is understood that he did not post at midnight Greenwich Mean Time, which made Nakamoto more likely to be English.

Willie Ladonwireta
Is a Finnish researcher and former designer of video games. Of course, since he does not have the skills of Satoshi Nakamoto in programming and does not have much information about cryptography, he has reduced the possibility that he is Satoshi Nakamoto. On the other hand, if Virta was the creator of Bitcoin, he would probably have left his job at the university.

Gwen Anderson
After Nakamoto’s disappearance, Gwen Anderson took over, but it is not very plausible that he is Satoshi Nakamoto. However, Anderson had stated that the Australian “Greek Wright” was the same as Satoshi Nakamoto.

Wright was a computer scientist. Much research has been done on Gwen Anderson after his claim. The result was that he was either the creator of Bitcoin or a big liar.

In 2019, Greek Wright registered the copyright for bitcoin zero and one in the United States.

Some accepted him as the creator of Bitcoin, but some did not. In 2019, he announced that he was involved in the project with a group of “Dave Kilman” and “Hall Finney”.

Kleiman was a cryptographer who died in poverty in 2013. When he was found, there were bottles of alcohol and a gun around him, and his body was decomposing. There was also a hole in his mattress due to an arrow.

It is interesting to note that he had a significant amount of “Bitcoin” at the time of his death. Kleiman’s brother refused to release Kleiman’s hard drive. That is why the truth was not revealed in this case.

Hall Finn

Among those who may be Satoshi Nakamoto, Hall Finney is one of the most likely options.

He was an experienced cryptographer before creating these cryptocurrencies. Even if Finney is not the same as Satoshi Nakamoto, the two can be put on the same level in terms of intelligence. Because they are both geniuses.

It is not bad to know that Finney’s handwriting is very similar to Satoshi Nakamoto, although this is not a strong reason for this claim. Because the same thing was said about Anderson.

Finney said he was not Satoshi Nakamoto and even allowed inspectors to search his home.

He was the first person to receive Bitcoin from Satoshi Nakamoto. Unfortunately, Finney died in 2014 due to illness.

Dorian Nakamoto
Dorian Prnfis Nakamoto is a Japanese-American citizen. He lived at the end of the street where Finney lived, was that a coincidence?

The speculation that Dorian Prnfis is Satoshi Nakamoto comes from a bi-weekly reporter asking him questions about Bitcoin in 2014, but Dorian replied that he no longer had anything to do with the cryptocurrency and that other people had taken responsibility. . This response greatly increased the concentration of suspicion about him.

However, Royan said after the incident that he did not understand the reporter’s question correctly and thought that the reporter was asking about his military record, which is a confidential matter.

After this incident, Satoshi Nakamoto’s account was activated after 5 years and he announced that he is not Dorian Nakamoto.

Nick Sabo
In terms of intelligence, he can be Satoshi Nakamoto. On the other hand, he wrote an article about Beat Gold, a decentralized digital currency. The currency did not peak, but some said it could be the failed version of Bitcoin.

Before the advent of these cryptocurrencies, he had come up with a bitcoin-like design. However, Nick stated that he was not Satoshi Nakamoto and added that Satoshi had guided him in the field of gold coins.

Scott Storrenta
He is one of the first founders of blockchain technology in China, who mentioned eight important effects in Bitcoin white paper. One is a general book on probability, and the other deals with fundamental issues in cryptography, three of which were written by Scott.

In 1991, Scott Stornetta and Stuart Haber proposed a decentralized scheme in an article entitled “How to Label an Electronic Document in Time.”

Many of the principles presented in this article and subsequent articles were later used by Satoshi Nakamoto. However, in 1995, before the birth of Bitcoin, they launched their own blockchain network, the first in the world, which is still active.

Although Stornetta says he is not Satoshi Nakamoto; But his work was fundamental to the whole field of cryptography.

Even with the removal of Satoshi Nakamoto from the project, this person (or group) is still important to the cryptocurrency world because of his bitcoin assets. If the Nakamoto intends to sell its cryptocurrencies, the digital currency market will fluctuate sharply.

The higher the price, the greater the influence of the cryptocurrency market on the behavior of someone who owns a large amount of them. Nakamoto is estimated to have about one million Bitcoin units.

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Kanye West spoke to Charlamagne the radio host about Pete Davidson's penis Kanye West has been in the media having very controversial interviews including one of the latest where he reportedly 'screamed' comedian Pete Davidson's penis size and...

Who is Donald Trump ?

Donald J. Trump Founder, The Trump Organization Donald J. Trump is the very definition of the American success story, continually setting the standards of excellence while expanding his interests in real estate, sports, and entertainment. He...
Saudi Arabia National Flag

Saudi Arabia took the first step to change the national flag and anthem 

Saudi Arabia intends to make changes to its national anthem and its green flag emblazoned with a sword. According to the Associated Press, quoting the Saudi state media, late last Monday, the advisory council and...

“Apple Watch” saved the life of a woman who was buried alive

Apple's smart watch saved the life of a 42-year-old American woman who was buried alive by her husband. According to imore website, this woman, who lives in Seattle, America, was suddenly attacked by her husband...
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Dj Dark – Autumn Vibes (September 2019)

We woke reasonably late following the feast and free flowing wine the night before. After gathering ourselves and our packs, we headed down to our homestay family’s small dining room for breakfast. Refreshingly, what was...
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