At the outset we must make it clear that there is a difference between Bitcoin as a system or project, and Bitcoin as a digital currency.
Bitcoin is a decentralized currency where its system operates without the intervention or control of a central bank, manager, or even an intermediary, and all its transactions are transmitted from one user to another through a decentralized network of nodes that carry information and data of its operations encrypted cryptography distributed among all parties to the contributors to the network with a mechanism Peer-to-peer.
Validation of these transactions is carried out through a transaction log distributed on a gigantic network of blocks powered by blockchain technology.
Bitcoin
Bitcoin is the most popular and popular cryptocurrency, but there are thousands of other cryptocurrencies, but they are commonly known as alt-coins.
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The BITCOIN system is a group of mining computers - also referred to as nodes or miners - that all run the bitcoin code and store its blockchain.
In each block a set of transactions. All computers/nodes running a blockchain have the same list of blocks and transactions in encrypted fragments
Bitcoin is kept in a so-called digital wallet. These wallets have a unique Bitcoin address and are secure.
It can only be accessed through unique passwords called keys, public key, which is the key used by the wallet owner or owner of the digital currency in its publication to receive transfers from BTC to it, and the private key is an individual can authorize the transfer of Bitcoin from his wallet to another wallet .
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Every BTC transaction is recorded on a blockchain network, and a blockchain is a ledger or master record of the network, sort of like a giant table or database.
It is maintained and monitored by many people all over the world. Every person - legally - is in front of a special computer called a Node. Each node of the network validates new blocks that are added to the chain.
New transactions are grouped into blocks and added to the blockchain. In order to provide validity to the new blocks, it is done through a mechanism called proof of work and symbolized by the acronym POW, and this is by solving a difficult cryptographic puzzle.
The process of solving this puzzle is considered mining, and this currency requires high computing power and large electrical power to operate, as normal personal computers are not suitable for such a process.
Bitcoin mining
The process of mining Bitcoin is not different from the same idea - in theory - when mining or prospecting for gold or silver, for example, the difference is that the process of mining Bitcoin was done by giant devices, computers and processors instead of drilling equipment in the rocks to search and prospect for solutions to puzzles in the encrypted content and codes And complex mathematical algorithms rather than rocks.
How does a person own bitcoin?
The answer to this question is very simple. In the Blockchain that we talked about, every Bitcoin is recorded in what are called Bitcoin addresses. The creation of this address is nothing but the selection of a random private key and computing the corresponding address, and this coin occurs in part from the second.
Bitcoin wallet
The Bitcoin wallet is the electronic interface for the user’s bitcoins, as it is a program in a computer, mobile device, or even through the web. The wallet keeps the user’s bitcoin balance but does not actually contain the digital currency itself, but rather stores a bitcoin address The user’s private key and key to access the Bitcoin blockchain network, and when people make a payment, wallets use the key to digitally sign transactions that prove ownership of the digital currency in the network.
Bitcoin mobile wallet
A mobile bitcoin wallet is the most convenient wallet to access, but your wallet provider stores your key on an app that is installed on your phone.
So if someone knows and has access to your phone passcode, they can easily send all your money to one of their Bitcoin addresses, and this security issue is usually resolved by allowing fingerprint authentication — available on many smartphones today — just by opening a wallet app. your mobile phone.
Bitcoin web wallet
The web bitcoin wallet is just as convenient and seamless to access as mobile wallets, as it makes it easy to access your bitcoins from anywhere on any browser or even a mobile device.
But it also comes with a similar risk, if someone gets to know your login credentials, they can hack your account and steal all your money, so it is important to secure your login credentials as much as possible.
Computer bitcoin wallet
Computer Bitcoin wallet is software that you can install on your computer. It's more secure than mobile and web wallets, but it still has some risks.
Hackers can still exploit desktop wallet vulnerabilities, such as mining unencrypted account recovery phrases, to steal your bitcoins, so consider only using a wallet that encrypts your private key and account recovery phrases, with more than one type of authentication enabled for data entry .