Bitcoin Is A Digital Form Of Currency

1523 WordsOct 24, 20167 Pages
Origins of Bitcoin The term Bitcoin first came to light around 2008. Bitcoin is a digital form of currency (aka cryptocurrency) that can be traded on the internet around the world and it quickly stroked the interest of IT savvy enthusiast for its cleverness and libertarian who saw it as means of non-governmental controlled currency, but the “icing on the cake” was Bitcoin can be used anonymously. This in turn has attracted the dark side of illegal trades of narcotics, weapons and a varying sort of illegal services to adopt the use of this new age digital currency. Using Bitcoin helps to hide the illegal transaction trails. (Corderoy, 2016) Satoshi Nakamoto who was credited for creating the Protocol and Bitcoin, is a very anonymous individual, there is very little information about him or her and there’s a lot of speculation that Satoshi Nakamoto could indeed be a group of people. (http://www.coindesk.com, 2016) How does Bitcoin Work How does Bitcoin work? Bitcoin is traded via the internet with a special software, person to person exchange without using the need of a third party such as bank or financial service providers. The software creates a “personal wallet” system for each user. This “personal wallet” is controlled and created using cryptography . All Bitcoin transactions are captured into system known as a shared public ledger called the “block chain” . (Leger, 2013) Each of these transactions has a digital signature that corresponds to the sender 's address. This
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