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Cryptocurrency Explained: What Is Bitcoin?

Bitcoin is the world’s first decentralized digital currency. It is also considered as the father of all cryptocurrency. The white paper was published by the founder of Bitcoin, Satoshi Nakamoto, on 31st October 2008. Initially, he used the word shorter coin. It was first launched on 9 January 2009.

Bitcoin is an open source system. Its design is public. Nobody owns or controls bitcoin technology, and everyone can take part in its development and enhancement. Blockchain is the core technology behind it. Blockchain is a combination of cryptography and algorithm code. The first block is known as genesis block. It works on peer to peer technology, done via mining which is called Proof of Work.

The cryptography hash algorithm used is called double SHA-256. When a miner discovers a block, the winner is rewarded with a certain number of bitcoins, presently the reward is 12.5 bitcoins. This value will halve every 210,000 blocks. It typically takes four years for the same. This is how new bitcoins are created.

The blocksize of a bitcoin is 1MB. It takes about 10 minutes to mine a block. Bitcoin is capable of processing 3-7 transactions per second. Subunit for bitcoin is Satoshi and the smallest fraction of bitcoins is 8 decimal. The total supply of bitcoin is 21 million.

Bitcoin has been forked multiple times. Some were successful, while some are dead. There are two type of forks, hard forks and soft forks. During a hard fork, software, hardware implementations and its mining protocols and procedures are upgraded. Once the user is upgraded, It aborts all transactions from the previous software. And, a new branch of blockchain is created. It is segregated from the parent blockchain.

A soft fork is a change to the Blockchain protocol, wherein only previously valid blocks/transactions are made invalid. New transaction types can often be added as soft forks.

The list of a few bitcoin hard forks

BitcoinXT, Bitcoin Classic, Bitcoin Unlimited, Bitcoin Cash (BCH), Bitcoin Gold (BTG) and Bitcoin Diamond (BCD).

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]

Pooja Anoj is a cryptocurrency blogger who covers exciting crypto news stories and crypto guides for OWLT Market.

  1. Reema Roy

    June 2, 2018

    Thanks pooja…for this article has helped me know more about bitcoin😉😊

  2. Abrar Kumbharlikar

    June 2, 2018

    Very nicely explained. Use of simple words and terms, made it more easier to understand quickly.

  3. Tharun nair

    June 2, 2018

    Article cleared a lot of my doubts on bit coins simple explanation without any lackona good work .

  4. Abhishek

    June 2, 2018

    Grt article . Thanx for d info

  5. sagar

    June 2, 2018

    Good to know about bitcoins. Well Explained Pooja. ✌️

  6. Excellent Pooja. Keep up the good work…

  7. Satyan pv

    June 2, 2018

    Well explained in simple way

  8. Sagar

    June 2, 2018

    Good to know about Bitcoins. Well Explained Pooja✌️

  9. Very well explained ✌️

  10. Saurabh dhuri

    June 3, 2018

    A good and a precise article on Bitcoin.I hope you keep writing these useful articles ahead🙌

  11. Yogesh khot

    June 3, 2018

    Great article pooja. lot of my doubts abt bitcoin are clear now.

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