Bitcoin

Bitcoin was introduced in January 2009 by the developer Satoshi Nakamoto. Bitcoin is an open source payment system where all transactions are included in a public block chain.

Bitcoin is often referred to as digital currency or crypto currency. The reference to crypto is used because Bitcoin uses asymmetric cryptography (public key cryptography). This class of cryptographic algorithm requires two separate keys, one public and one private.

Wallets are used for the public and private key pairs. The public key is the address that can be used for sending or receiving Bitcoin. The private key is used to make transactions from one address to another, and must be kept secret from others.

Mining of Bitcoin is the process of verifying transactions and add them to the block chain by calculating many hashes to find one that fulfill a criteria. The reward of performing the mining operation is currently 12.5 Bitcoin for the one that find the hash that can be used to add a new block to the block chain.

The maximum number of Bitcoins will never be more than 21 million.

Read more about Bitcoin at Bitcoin.org

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