Bitcoin- A digitized mode of transaction

Bitcoin- A digitized mode of transaction

For more than 3000 years, people traded goods to earn an income. During the initial years when people wanted to buy stuff from other places, they preferred exchanging it with their stuff. During the ruling period, kings used gold as well as silver coins as a mode to trade goods from one place to another. Slowly as time passed by, gold and silver coins were replaced with coins made of aluminum and additionally, the paper came into existence for trading goods. People trusted this mode for quite some time and in the year 2009, we came to know about bitcoins. Technology keeps evolving every six months. One can consider this as a mode of digital transactions. To understand bitcoins, people need to know what cryptocurrency means in real life.

Cryptocurrency is nothing but a digital asset that forms the crust for digital transactions particularly in the field of finance. It uses strong cryptography, for secured financial transactions as well as verify the transfer of assets. It is a path-breaking invention and was termed to be the most probable source for any mode of the transaction to be carried out soon. It is a type of digital, virtual or alternative currency. This works based on another technological term stated as Blockchain which serves as a public financial transaction database. The main utility of this technology is that it uses decentralized transactions as opposed to centralized transactions that occur in the banking systems. In the year 2009, bitcoin was first released as open-source software that utilized decentralized mode for transaction purposes. People slowly started understanding the actual meaning of cryptocurrency through bitcoin.

Bitcoin first came into existence during the year 2009. People still are not clear as to who is the exact creator of this technology. The software works quite like the operation of Blockchain. Blockchain can be considered as the soul base of bitcoin. At the core point of definition, blockchain is a model of decentralized cryptocurrency transactions using hyper ledger accounts. People who had invested during the initial time span became almost like a millionaire within a span of two to three years. This is a major advancement that one would have ever dreamt of in his life. Slowly the hype among people started spreading across like a wild spree. People started investing huge amounts which increased the value of the digital money. 

For around eight years, people could make sufficient profit but it was in 2017 that the technology started facing issues and several countries started to offend its genuineness as no one had an idea as to where the invested income ends up. People must also know that there are several differences when both Blockchain and Bitcoins. It can be said that bitcoin utilizes the distributed ledger for a peer to peer network by keeping it open-source, public as well as anonymous. Blockchain operates the other way around. Here for each transaction, one can find its history. Bitcoin utilizes blockchain as a source for its operation but is quite different from it. For each transaction, one might find the history of transactions that were performed by the previous owners in blockchain but this is not quite visible in bitcoin technology. Thus, under these circumstances, it solely depends on the individual if he/she is interested in investing in bitcoins and one must research completely before investing in this mode as that could either end up providing major profits or lead to major disasters.