Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.
Bitcoin was invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto. It was introduced as open-source software in January 2009. The identity of Satoshi Nakamoto remains a mystery.
Bitcoins are created as a reward for a process known as mining. Mining involves using computer power to solve complex mathematical problems that validate and secure transactions on the network. This process also adds new bitcoins to the system, making it the primary way in which new bitcoins are created.
Bitcoin transactions are recorded on a public ledger called the blockchain. This ledger is maintained by a network of nodes (computers) that validate and record transactions in blocks. Each block contains a group of transactions, and once a block is completed, it is added to the chain in a way that makes it very difficult to alter past transactions.
One of the key features of Bitcoin is its decentralization. Bitcoin runs on a peer-to-peer network and is independent of any one organization, unlike conventional currencies, which are under the control of governments or central banks. This makes it immune to government interference or manipulation.
Bitcoin has gained popularity as a form of digital currency and is used for various purposes, including online purchases, investment, and as a store of value. It’s worth noting that Bitcoin’s price can be highly volatile, and its use can be subject to regulatory changes and legal considerations in different countries.