An encrypted digital unit of account, a virtual concept but also a reality, a token of value, an asset used on the decentralized Internet as a peer to peer exchange of value. It is a protocol used on a distributed network ledger.
A blockchain is a distributed public decentralized digital ledger. Used to record transactions across many computers (Nodes) The records (Blocks) cannot be altered retroactively without the alteration of all Blocks in the chain. Which is virtually impossible.
“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
Credits: Don & Alex Tapscott, authors Blockchain Revolution (2016)
The revolutionary & ingenius invention by an anonymous entity (Satoshi Nakamoto) who published a White Paper in Autumn 2008 coincidently, just at the lowest point of the financial crisis and collapse of the investment bank Lehman Brothers as an alternative Peer-to-Peer Electronic Cash System. Satoshi sparked a new innovation with his new currency, Bitcoin and the autonomous accounting method of transference, Blockchain.
Find a local digital currency exchange that trades the currency asset of choice
Open a Cryptocurrency Wallet.
Buy your asset by exchanging your local currency.
Transfer the asset to your wallet.
A cryptocurrency wallet is a software program that securely stores private and public keys and is recorded on a digital public ledger (Blockchain) to enable you to send and receive digital currency and oversee your account balance.
There are five types of wallet: online, mobile, desktop, hardware and paper wallets
A process using a computer with specialized hardware in which transactions are verified using cryptographic algorithms computations (a varying mathermatical puzzle) and added to a blockchain digital ledger after verification by other computer users (Nodes) all competing for the compensation for finding the answer to the puzzle first.
Bitcoin is pseudonymous - It is not entirely anonymous
If your recorded transaction address is ever linked to your identity the transaction will be traceable to you
Fiat money holds value in trust and adoption. Bitcoin; can also be measured by its growing popularity with users, merchants etc. Like Fiat currency (cash), value comes only and directly from people willing to accept and use it as payment.
Although virtual, Bitcoin’s inherent core code gives it features comparable to traditional fiat currency like; being decentralized, scarcity, divisibility, portability, fungibility, pseudonymous and recognizable. It is impossible to counterfeit, and is programmable.