The world is heading towards a completely online mode of transaction through global Shutdown had boosted the same. One of the complete online currencies being discussed i.e. Bitcoin. In other words, Bitcoin is the digital currency being used today.
Bitcoin – An Overview
The first and foremost question that strives to our mind that what is bitcoin? As the currency of India is Rupees and US is Dollar likewise Bitcoin is the currency of the internet. If today there wasn’t internet Then there would be no existence of Bitcoin.
So the next question arises who created Bitcoin? In answer to the same context, there is not any concurrent proof about its creators only there are rumors about Satoshi Nakamoto. It is completely open-source and there is not any administration or community to control it. My doubt was if there is not any committee then who is operating the website of Bitcoin and was operating Bitcoin. Then I got to know that the contributor of Bitcoins have started this website and they all are managing that.
So the next question is how Bitcoins are created and how it functions? Like when we transfer money from Paytm or Google pay there is only a transfer of virtual money, not real cash similarly Bitcoin is transferred virtually.
For example, if I bought something from a market and I would tell you that its value is $10 but you don’t consider its value to be $10 but at the same time if hundred people would say that its valuation is $10 then you will also have to accept that its value is $10.
The same thing happened to Bitcoin when it was created in 2009 there was no value of Bitcoin because it wasn’t any physical money nor gold nor any physical asset it was just a digital currency but people slowly started considering its evaluation and now it has a great value.
If you transfer money from Paytm or Google pay but if the money is not received to the user then you have a legal right to file the case against the company but in Bitcoin, if you ever faced such type of incident you cannot do anything regarding this since kids just peer to peer electronic transfer and there is no involvement of any community or territory to look into the matter.
Suppose if someone has some Bitcoin how do you convert to real cash so it’s trading of Bitcoin if I have bought some Bitcoin for some valuation then when its price increases I can sell to higher valuation just likewise share market function. There is even limitation that Bitcoin can never be created more than 28 million as per the design of Santoshi Nakamoto.
The value of Bitcoin totally depends upon demand and supply. If there is a higher demand for Bitcoin amount equal then the price of Bitcoin increases and vice versa. Through the completion of a transaction, a million computers parallel solve the keys. The same is known as miners.
Blockchain Working Mechanism
Suppose I have a wallet of Bitcoin and I have taken your Bitcoin address and I have told you that I am sending 1 Bitcoin (1BTC). As soon I click to transfer it will suddenly go to the blockchain. blockchain finds out the history of the whole transaction from where this Bitcoin and to how many people it has been transferred then it is stored in a computer and the user has to decrypt the keycode to receive that money. In short, it is one of the best and first real-life practical implementations of blockchain technology.
Under encryption of key code, millions of processes are required by computer and usually, it is done by the data mining center. It seems a very expensive and time-consuming process but the whole complexion aimed to decentralize data so that no person can fraud it and secure it from government agencies.
It usually takes 25 to 30 minutes for one transaction in it takes time to reverse and decrypt the key code to succeed the transaction. Reversing is done by computation power buy Bitcoin miners. Bitcoin miners have to pay small Debt and if they are successful in reversing they get some percentage of transaction in form of Bitcoins.
Bitcoin in India
The official website of Blockchain contains the list of all the number of blockchains which are made in which transactions are going on and which are in mining so let us suppose if 4 minutes ago 1220 transactions are made which are of something dollars and which has the size of something KB means which are even less than 1 MB now almost every transactions there is trying to get verified as early as I can and from which it can get to know that either they are right or not.
Is that you can get to see in each and every transaction there if you get login into blockchain by placing the addresses then automatically everything you would get to know like from where the amount is coming and to where it is going. Here everything is transparent it does not have any bodies control and no one can hide anything.
In our India, these modes of currencies are currently not being used and somehow somewhere it is also heard by the government of India that it is illegal to question is why because it is anonymous our Indian government can’t get a drastic change to have control over these like from where the transaction is coming and going and what items are being purchased.
Being ready for a Bitcoin Investment
Bitcoins but it will require your pan card, your address proof and so after all your identity will be leaked that this bitcoin ID belongs to this person and does a number of transactions which will happen will get recorded on your name do people from India went out to foreign to buy and sell these.
Now if you wanted to hack or want to destroy any algorithm you can do it on one computer but there are millions of computers working and following that thing so for this you have to first change the computers by modifying them then you can change any algorithm but that you can’t because there are millions of people you are working under its data mining.
In short, Bitcoin is a peer electronic system by using this same thing you can make your own coin but it’s almost very complicated because you can’t get more new transactions and does the prices of that can’t be increased and decrease and the people would generally not going to have trusted our faith on that because even this
Bitcoin is now believed by the people after so long time it is being invested and now it is also being valued by them. So this was it for today. We hope you liked the presentation. If you didn’t, then kindly leave feedback below.