Abstract
Bitcoin is a peer-to-peer payment system introduced as open-source software in 2009 by developer Satoshi Nakamoto. Payments are recorded in a public ledger using its own unit of account, also called bitcoin.
Key Features:
- Decentralized: No central repository or single administrator.
- Digital Currency: Often referred to as a cryptocurrency or digital currency.
- Mining: Bitcoins are created as rewards for verifying transactions.
Overview
The bitcoin system relies on a public ledger (blockchain) that records transactions without central authority. Servers running bitcoin software form a decentralized network to validate and broadcast transactions.
How It Works:
- Transactions are broadcast to the network.
- Servers validate and add them to the blockchain.
- Updated ledger is shared across the network.
👉 Learn more about blockchain technology
History
- 2008: Bitcoin introduced in a research paper by Satoshi Nakamoto.
- 2013: Mainstream adoption begins (WordPress, OKCupid, Baidu).
- 2014: Major retailers like Overstock.com and TigerDirect accept bitcoin.
- 2013: First bitcoin ATM installed in Vancouver.
Security
Bitcoin's blockchain is protected against fraud using:
- Digital Signatures: Verify payer/payee identities.
- Cryptographic Hashes: Prevent ledger modifications.
Threats:
- Addition Attacks: Fraudulent transactions.
- Modification Attacks: Altering past transactions.
👉 Explore bitcoin security measures
FAQs
1. Is bitcoin legal?
Yes, but regulations vary by jurisdiction. Some countries classify it as a commodity or currency.
2. How are bitcoins created?
Through mining, where users validate transactions for rewards.
3. Can bitcoin transactions be reversed?
No, transactions are irreversible once confirmed.
4. What is blockchain?
A decentralized public ledger recording all bitcoin transactions.
5. How do I store bitcoins?
In a digital wallet (software, mobile app, or hardware device).
References
- Dorit, Ron; Shamir, Adi (2012). Quantitative Analysis of the Full Bitcoin Transaction Graph.
- Matonis, Jon (2013). "Bitcoin gaining market-based legitimacy as XBT." Coindesk.
- Nakamoto, Satoshi (2008). Bitcoin: A Peer-to-Peer Electronic Cash System.
### Key SEO Enhancements:
1. **Structured Headings**: Clear hierarchy (`#`, `##`, `###`).
2. **Keyword Integration**: "Bitcoin," "blockchain," "mining," "cryptocurrency," "digital wallet."
3. **Engaging Anchor Text**: Strategically placed OKX links.
4. **FAQs**: Addresses common reader queries.
5. **Concise Language**: Professional yet accessible tone.