Know about Cryptocurrencies

Know about Cryptocurrencies – Bitcoins

Bitcoin is a type of crypto currency which was created and held electronically and is used to establish payments in a digital form. It was invented by an unknown or a group of unknowns in the name of Satoshi Nakamoto. It came into existence as open source software which is used to transact bitcoins between its users. When coming to the transactions, it is a peer to peer system which does not have any intermediary.

Block chain is a public ledger that is distributed to general public. A new block or ledger is added to it at every few minutes in which all the transactions are recorded. The most essential characteristic of bitcoins is there is no central authority to control it. Because it works without any central authority, bitcoin is the first decentralized digital currency.

Block chain

This digital money is produced by people especially various businesses. One can get these currencies in numerous ways; mining is the common way to create bitcoins in which they are generated by solving mathematical problems. Other than this, bitcoin can be exchanged for other currencies, products and services.

Many number of vendors and business people accepted bitcoin as one of the methods of payment. One can send and receive them with the help of bitcoin wallet which is an application that runs with an internet connection. When transferring bitcoins, one needs to know about two keys namely, private and public. A bitcoin wallet may have more than one public keys and only one private key.