Bitcoin 101

(What is Bitcoin?)

By C. Spinney

Bitcoin, (BTC for short,) is a form of monetary value called Crypto-currency.

BTC is a worldwide payment system.

A digital form of monetary value.

Money.

Bitcoin is the first of its kind. To understand what Bitcoin actually is, we must first understand the concept of Crypto-currency formed through the computer science, Cryptography.

What is Cryptography?

The word Cryptography is derived from two Greek language root words. “Kryptos,” which means “Hidden,” or “Secret, “as well as “Graphien,” which means to write.

In essence, Cryptography means to “Write in secret.”

Relating to modern computer science, cryptography creates and secures computer protocols in such a way that unintended outsiders cannot read a message sent between two people. I’ll say it again,

“Cryptography is the securing of data in such a way that only the intended recipient can receive and decode the information.”

The science of cryptography has been used by many different empires throughout the ages.

• The ancient Greeks used cryptography in military communications.
• The Egyptians used cryptography on stone carvings.
• Even the 2,000-year-old Indian text “Kamasutra” tells of different Ciphers or cryptography encryption methods.

How does any of this relate to Bitcoin?

Bitcoin, as well as other cryptocurrencies, use cryptography as the primary method to secure their network made up of “Nodes.” The method Bitcoin uses is new, however, computer cryptography is not a new practice.

Military entities, credit card chips, as well as e-commerce platforms, have been using cryptography as a means to secure their networks, and data, for years. Bitcoin differs from these other cryptography examples by factoring in decentralization.

What is decentralization as it relates to Bitcoin?

Bitcoin runs its network, made up of nodes, on a decentralized peer-to-peer, (P2P,) network of computers. A decentralized network is a set of computers connected with no Central point or control point. Using this P2P platform, Bitcoin distributes all of the transaction data ever made to all of the nodes on what is called the public ledger.

What does that mean, Public ledger?

A public ledger is the history, or record, of every transaction wrapped into a block of information. These blocks are connected consecutively into a successive chain called the Blockchain. Each consecutive block on the chain contains a bit of information from the previous block. This technique creates a structure that cannot be tampered without changing the entire blockchain history. When a user downloads a PC wallet to store their Bitcoins with, the wallet will check, or download, the entire public ledger, (aka Blockchain.) This enables the wallet app to verify the ownership through the entire BTC’s history.

So why use Bitcoin?

Bitcoin is the future of global payment technologies. With Bitcoin and other cryptocurrencies, (called crypto’s for short,) it has never been easier, safer, or cheaper to send money across the entire globe in a matter of seconds.

A user by no means has to completely understand how the process works to receive the benefits of Bitcoin or any cryptocurrency for that matter. All a consumer has to do to own bitcoin is, sign up with an exchange, find a wallet, and buy their Bitcoins!

Wallets are available in software form for PC or mobile devices, as well as in hardware form to securely hold your funds on a portable USB type device. If owning Bitcoin is something that interests you, signing up with an exchange such as Coinbase, or CEX.IO, will allow you to buy your Bitcoins off of the open market. Exchanges like these are very safe and trusted by crypto traders worldwide. You may also opt to use a mobile app like Coinbase, Abra, or Robin Hood, to buy the digital currency of the future. Many large exchanges have Android or IOS apps available to make buying your favorite crypto even easier. Don’t wait until it’s to expensive, get your hands on the currencies of the future today!

(I should note that the exchange links provided are referral links.)

Sources:

https://en.wikipedia.org/wiki/Cryptography#Classic_cryptography

https://en.wikipedia.org/wiki/Bitcoin

https://en.wikipedia.org/wiki/Decentralized_computing

Image Credit: mokin darom

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BIO

Chris is a student of the crypto future. He is new to the crypto game, however is thrilled to be a part of the largely growing, newly shaped crypto community. If he isn’t trading on Binance or chatting in a Telegram chat about Cryptos, he can be found in the best Crypto Facebook group Lemons to Lambo’s!

Email him at [email protected]
Check out his Linkedin Profile
Or get with him on Twitter

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