Friday 10 November 2017

WHAT IS BITCOIN

Bitcoin is a worldwide cryptocurrency and digital payment and it is also called as first decentralised digital currency.when you open a website address into a browser you might have noticed about the letters 'HTTP' which stands for hyprtext transfer protocol.Typing an address,you are actually sending an HTTP command to transmit that website to you.Hypertext transfer protocol is the means by which information is shared across the web.

Similarly when setting up email account,you might have been noticed the letters of 'smtp'-for example,'smtp.gmail.com'.SMTP stands for simple mail transfer.SMTP is the protocol by which we send email to each other.What actually happens,when you send an email  through gmail to say someone with a yahoo address is that google server reaches out to yahoo server and transmits into a text file then yahoo server says to its user that you've gat an email.
So a protocol is an agreed system by which informatyon is shared across a network.

Bitcoin-with a capital of letter 'B' is another protocol.The function of the protocol is to send and receive payment information.With bitcoin computer network reaches out to another network user's computer,gives it some binary gibbersh proving that your control  X of number of coins at this address and want them to increase the balance at that address.

The unit money on the bitcoin protocol is the 'BITCOIN'.As the rupee is the unit of the indian banking network and dollar is the unit for the USA currency network ,so bitcoin is the unit of money on the BITCOIN system.So bitcoin is two thing-a protocol and a unit of money.It is an internet version of money.

Bitcoin is the first attempt to create a real world currency with no government,no rules and regulations.The protocol creates a unique pieces of digital property that can be transferred from one person to another..Th protocol also makes it impossible to double spend a bitcoin which means that you can't spend the same bitcoin twice.

2 comments:

  1. Usually, I never comment on blogs but your article is so convincing that I never stop myself to say something about it. You’re doing a great job Man. Best article I have ever read

    Keep it up!

    ReplyDelete

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