What are Cryptocurrencies?

WHAT IS BITCOIN?

Bitcoin is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. Bitcoin was the first practical implementation and is currently the most prominent triple entry bookkeeping system in existence.

 CRYPTOCURRENCIES EXPLAINED?

Better known as a Digital or Virtual currency you can’t pick up a coin and hold it in your hand, or pull one out of your wallet. But just because you can’t physically hold a coin, it doesn’t mean they don’t exist just like we can’t say emails don’t exist because its not physical mail in your mailbox. When the internet was created it was created in order to virtually transmit information and look where the tech companies are today. Crypto Currencies where created in order to virtually send value without a middle man like a bank. Just like sending an email doesn’t need to go through a mailman. This way you save money on crazy fees both with the post companies chargers and your banks charges.

WHO CREATED BITCOIN?

The first Bitcoin specification and proof of concept was published in 2009 by an unknown individual under the pseudonym Satoshi Nakamoto who revealed little about himself and left the project in late 2010. The Bitcoin community has since grown exponentially.Satoshi’s anonymity often raises unjustified concerns because of a misunderstanding of Bitcoin’s open-source nature. Everyone has access to all of the source code all of the time and any developer can review or modify the software code. As such, the identity of Bitcoin’s inventor is probably as relevant today as the identity of the person who invented paper.

WHO CONTROLS THE CRYPTOCURRENCY NETWORKS?

Nobody owns the cryptocurrency networks much like no one owns the technology behind emails or the Internet. Cryptocurrency transactions are verified by miners which has an entire industry and cloud mining options. While developers are improving the software they cannot force a change in the network protocol because all users are free to choose what software and version they use. In order to stay compatible with each other, all users need to use software complying with the same rules. Cryptocurrencies can only work correctly with a complete consensus among all users. Therefore, all users and developers have a strong incentive to protect this consensus.

HOW DO CRYPTOCURRENCIES WORK?

From a user perspective, cryptocurrencies are nothing more than a mobile app or computer program that provides a personal cryptocurrencies wallet and enables a user to send and receive cryptocurrencies. Behind the scenes, the Crypto networks are sharing a massive public ledger called the “block chain”. This ledgers contain every transaction ever processed which enables user’s computers to verify the validity of each transaction. The authenticity of each transaction is protected by digital signatures corresponding to the sending addresses therefore allowing all users to have full control over sending bitcoins. Thus, there is no fraud, no chargebacks and no identifying information that could be compromised resulting in identity theft.