- Category: Internet, tech, social media
- Created on Monday, 12 November 2012 11:50
- Written by EC
In 2008, Satoshi Nakamoto published a paper on The Cryptography Mailing list at metzdowd.com describing the Bitcoin protocol. The Bitcoin network came into existence on 3 January 2009 with the release of the first open-source Bitcoin client, Bitcoind, and the issuance of the first Bitcoins.
Bitcoin is based on the fact that the money is generated by the algorithm in advance and that is impossible to print any additional money (unlike bank notes).
Using Bitcoin is quite simple. A special program must be installed on computer which creates a virtual wallet. This can connect with other computers anonymously.
By installing it the user provides his network system computing capacity and helps the sustainability and encryption of Bitcoin transactions.
Bitcoins are issued to various nodes which verify transactions through computing power; it is established that there will be a limited and scheduled release of no more than 21 million coins, to be fulfilled and issued by the year 2140. Internationally, Bitcoins can be exchanged and managed through various websites (Mt. Gox) and software along with physical banknotes and coins.
Bitcoins are issued according to rules agreed to by the majority of the computing power within the Bitcoin network. The core rules describing the predictable issuance of Bitcoins to its verifying servers, a voluntary and competitive transaction fee system and the hard limit of no more than 21 million Bitcoins issued in total.
When registering for the Bitcoin, the virtual wallet will create your unique address. This could be masked by different software system, therefore suitable for those who need anonymity.