Over the past decade, there has been a plethora of technological breakthroughs and we have tried our best to keep up with all them—from smartphones and self-driving cars, to augmented reality devices and social media networks.
Some, like smartphones and tablets, we have got used to, but the one advancement that has been around for just as long and that people still don’t know too much about is bitcoin.
It was back in 2008 that Satoshi Nakamoto (an alias used by a person or a group of people) first introduced the concept of a new, decentralized electronic cash system in his white paper. The idea behind it was to eliminate the need for intermediaries (banks or government institutions) in transactions and, with them, the possibility of fraud (such as double-spending) and other misuse.
How does the bitcoin network function? Based on a peer-to-peer technology known as blockchain. So, if you want to buy something using your digital cash, everyone else in the network needs to verify your transaction before it goes through. The verification process can sometimes take up to one hour (six validations), but that right there is what makes the whole process secure and safe from e.g. double-spending.
Interested in buying or selling bitcoin? If this is the case, then what you want to do is explore the available digital currency exchange platforms and choose the one that works for you the best. Once you pick yours, you’ll be able to trade in your regular cash for digital one, and vice versa.
While browsing exchange platforms, you might want to take a look at digital wallets, too—MyEtherWallet, Trezor, and Ledger are some of the names from the world of bitcoin. A wallet is necessary if you want to keep your bitcoin secure when you’re not using it; it achieves this with the help of a private key which makes your digital money accessible only to you.
So, there you have it: a basic introduction to bitcoin. If you’re willing to find out more about its advantages, the transaction process, and types of crypto wallets, then the infographic we’ve prepared is just for you. By the time you’re done reading it, you should have the basics down and be ready to delve deeper into the world of bitcoin, blockchain, and cryptocurrencies.