Details of Bitcoin

 

         BITCOIN (CRYPTOCURRENCY)

what is bitcoin:

• Bitcoin is a form of digital currency, created and held electronically. This puts some people at ease, because it means that a large bank can’t control their money. No one controls it. However, bitcoin’s most important characteristic, and the thing that makes it different to conventional money, is that it is decentralized. 
• No single institution controls the bitcoin network. Bitcoins aren’t printed, like dollars or euros – they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems.

How bitcoin works:

Bitcoin transactions are messages, like email, which are digitally signed using cryptography and sent to the entire Bitcoin network for verification. Whether you are spending or accepting bitcoin as payment, it is prudent to understand how a transaction works. Whether you are spending or accepting bitcoin as payment, it is prudent to understand how a transaction works.

Block chain:

It allows Bitcoin wallets to calculate their spendable balance so that new transactions can be verified thereby ensuring they're actually owned by the spender. The integrity and the chronological order of the block chain are enforced with cryptography. The block chain is a shared public ledger on which the entire Bitcoin network relies. All confirmed transactions are included in the block chain.

how its generated:

It is the mining process. eg. gold, To further parallel with the precious metal, there are only a limited number of new Bitcoins that can be mined – no greater than 21 million coins. Bitcoins carry a two-fold purpose 

        1.to create new Bitcoins 

        2.facilitate the processing of transactions within the network