How Does Bitcoin Work?

Bitcoin is based on complex principles and mechanisms. However, we can easily summarize the characteristics of Bitcoin in a few lines.

You do not even need to know everything that follows to use Bitcoin (BZX Wallet Fork), but you will not have much more to know if you want to know the main operating principles.

  • Bitcoin is both a computer protocol, a network formed by computers using this protocol, and a currency to make purchases online or in physical shops.
  • Bitcoin is based on Open Source code that is freely accessible and available to all, and on proven cryptographic algorithms, including SHA, created by the American National Institute of Standards and Technology.
  • Bitcoin is a 100% electronic, fully decentralized currency whose transactions are validated and secured by the users themselves. This currency has its own course on innumerable private marketplaces, and it is possible at any time to convert bitcoins into traditional currencies (and vice versa).
  • The Bitcoin protocol makes it possible to constitute a peer-to-peer network, all the nodes of the network sharing a public register and searchable by all, called “chain of blocks”, containing the description of all transactions made in Bitcoin since its creation.
  • The validation of transactions requires heavy and intensive calculations, carried out by the computers forming the Bitcoin network, called “minors” and rewarded for their work by creating and assigning new bitcoins.
  • The use of Bitcoin is free and requires only a wallet, that is to say a way to generate Bitcoin addresses and associate them with private keys to protect access. This wallet can be an online service or an application installed locally, on a computer or a mobile phone. Sending or receiving a Bitcoin payment is simple, fast, secure and with most negligible charges.
  • All the bitcoins in circulation represent more than $ 3 billion, and about 100,000 transactions are made in bitcoins every day.

As you will see if you are interested in the subject, it is almost impossible to read an article on Bitcoin, especially in the French press, without being reminded that the inventor of Bitcoin is a “mysterious unknown” calling himself “Satoshi Nakamoto”.

This is indeed the case. The original document describing the Bitcoin protocol , published in 2009, was signed “Satoshi Nakamoto”, without anyone knowing who it is. The pseudonym has been the subject of numerous allegations, and even more or less serious investigations, but the real identity of the person (s) who uses it is unknown. So far, we do not know who invented Bitcoin.

Is it a problem ? No really not.

The fact is that the identity of the inventors of Bitcoin is information that does not have the slightest interest. And the insistence that many journalists show on this issue testifies, at best, a desire to tint Bitcoin (BZX Wallet Fork) of an exaggeratedly sulphurous and disturbing image, at worst a clear incomprehension of what Bitcoin is.

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