Bitcoin is a digital asset and a peer-to-peer payment network operating on a cryptographic protocol. The concept was first introduced in 2008 when Satoshi Nakamoto published the now famous “Bitcoin: A Peer-to-Peer Electronic Cash System.”
Bitcoin is created and held electronically and no one controls it. Bitcoin has several important features: it is decentralized, easy to set up, transparent, with very little transaction fees, fast and non-repudiable.
The Bitcoin protocol was designed to generate a defined number of units; 21 million bitcoins to be precise. The protocol dictates how much bitcoin will be released and when and how that supply is reduced over time. These attributes are aimed at reflecting those of a commodity such as gold.
How are bitcoin created
bitcoin are created through a process called “mining.” Mining consists in adding transaction records to Bitcoin’s public ledger of past transactions. This ledger is called the blockchain because it is a chain of…