Bitcoin is a virtual currency that was first developed in 2009 by Satoshi Nakamoto, digital currency works just like Dollar, Euro, ringgit, rupiah or anything else. However, this digital currency is only available in the digital world. Examples of digital currencies such as eGold, but conceptually quite different from Bitcoin.
The technology used by Bitcoin is using peer-to-peer technology. with this peer-to-peer technology, makes Bitcoin unique enough, since it does not require central authority or central bank. The management of bitcoin transactions and issuance is done collectively in the network.
Initially, the concept of peer-to-peer is based on the possibility to send digital money without having to use a third intermediary, or financial institutions. Furthermore, in order to avoid multiple transactions, the solution is to use peer-to-peer technology. After that it is also equipped to provide Digital Signature, as well as the timestamp of recorded transactions and can not be changed in the form of hash.
Bitcoin is open source, the design is general, no one is the owner and control of Bitcoin. So that everyone can take part in it, including also everyone can also develop Bitcoin. Because of its unique nature Bitcoin allows ways of use that can not be done by other payment systems before.
With Bitcoin one can transfer instantly with peer to peer to other people with a wider reach, to anywhere, to any country. In addition, the transfer fee is very small, much smaller than the cost of transfer of other financial institutions. Transactions in Bitcoin, are irreversible, meaning that transactions that have been made can not be canceled. Bitcoin transactions are anonymous because Bitcoin is not controlled by any agency or government.
