what are bitcoins, working of bitcoins, how bitcoins work, bitcoins systems and risks, digital...

Download What Are Bitcoins, Working of Bitcoins, How Bitcoins Work, Bitcoins Systems and Risks, Digital Currency

Post on 11-Nov-2015

9 views

Category:

Documents

0 download

Embed Size (px)

DESCRIPTION

Bitcoin

TRANSCRIPT

  • Tweet 2 8

    Post By Simply Decoded (339 Posts)

    Making sense out of chaos in this Complex World &

    helping people in understanding things in a better way.

    Website:

    CONNECT

    Tweet 2 8

    Bitcoin : DecodedNovember 29, 2013 - Decoded, Economics and Business, International, Miscellaneous - Tagged: Bitcoins

    Systems and risks, Digital Currency, How Bitcoins work, What are Bitcoins, Working of Bitcoins - no comments

    Virtual currencies, or digital cash, are gaining popularity as a new way to purchase goods or services. They

    are not regulated or issued by a central bank. The most popular virtual currency is Bitcoin, which gaining

    popularity these days.

    What is Bitcoin? It is a digital currency that is created and exchanged independently of any government or

    bank. The currency is generated through a computer program and can be converted into cash after being

    deposited into virtual wallets.

    When Bitcoin was launched? In 2008, a programmer known as Satoshi Nakamoto a name believed to be

    an alias posted a paper outlining Bitcoins design and later in 2009 released software that can be used to

    exchange Bitcoins using the scheme. That software is now maintained by an open-source community

    coordinated by developers.

    How does Bitcoin work? It exists through an open-source software program and its supply is controlled by a

    computer algorithm. Once you download and run the Bitcoin client software, it connects over the Internet to

    the decentralized network of all Bitcoin users and also generates a pair of unique, mathematically linked

    keys, which youll need to exchange Bitcoins with any other client. One key is private and kept hidden on

    your computer. The other is public and a version of it dubbed a Bitcoin address is given to other people so

    they can send you Bitcoins.

    How Bitcoins are generated? The process of generating Bitcoins is quite complicated and involves solving

    complex algorithms and sharing the solution with the entire network. The mining is very computationally

    intensive and requires powerful computers.

    How to transfer Bitcoins: When you perform a transaction, your Bitcoin software performs a mathematical

    operation to combine the other partys public key and your own private key with the amount of Bitcoins that

    you want to transfer. The result of that operation is then sent out across the distributed Bitcoin network so

    the transaction can be verified by Bitcoin software clients not involved in the transfer.

    How to trade Bitcoins: Exchanges like Mt. Gox provide a place for people to trade Bitcoins for other types of

    currency. Payments to a merchant who accepts Bitcoins are made from the wallet application, either on your

    computer or smartphone, by entering the recipients address, the payment amount.

    Who controls the Bitcoin network: It is controlled by all

    Bitcoin users around the world. While developers

    improve the software, they cant force a change in the

    Bitcoin protocol because the virtual currency can only

    work correctly only if there is a consensus among all

    users.

    Bitcom transactions: At the end of August 2013, the

    value of all Bitcoins in circulation exceeded $1.5 billion

    with millions of dollars worth of Bitcoins exchanged

    daily, according to Bitcom website.

    HOME SECTIONS OPINIONS DECODED OUR GROUP JOIN US TOP NEWS THE BOOK SHELF

    17 people recommend this. Be the f irst of your friends.Recommend Share

    17Like

    17Like

    Is the Proactive Judicial Activismdiluting the basic structure of theIndian Parliamentary system? Join theDebate

    Search

    Simply Decoded

    6,914 people like Simply Decoded.

    Facebook social plugin

    Like

    Join 1417 other subscribers via Email

    Email Address

    Subscribe

    Other Useful Articles:

    Revenue Deficit & Fiscal Deficit

    Summary of 13th Finance Commission

    Report

    12th Five Year Plan and New Targets

    Summary of approved 12th Five Year Plan

    Income Through Launching of Satellite

    Current Account Deficit & India

    Different Writs and their Importance

    Indian Preamble and its Importance

    Capitalism, Socialism & Communism :

    Introduction

    MGNREGA: An Introduction

    Categories

    Decoded

    Economics and Business

  • Related Posts:

    Simple Explanation

    of Cloud Computing

    GDP Deflator:

    Decoded

    Imported Inflation:

    Decoded

    Hedge Management:

    Decoded

    Leave a Reply

    Enter your comment here...

    Facebook social plugin

    Also post on Facebook Posting as Amit Kumar (Change) Comment

    Add a comment... Enviroment

    Featured Articles

    Govt. Schemes

    International

    Latest

    Life & Society

    Miscellaneous

    Opinions

    Politics & Administration

    Science & technology

    Sports & Entertainment

    Strategic

    Uncategorized

    Follow the Editor on Twitter

    Shop on Flipkart and avail special

    discount!!

  • Latest on SimplyDecoded

    Income Through Launching of

    Satellite July 18, 2014

    Status of Indigenous Research

    and Development July 18, 2014

    India, the First Nation to ratify

    Marrakesh Treaty July 15,

    2014

    Summary of Economic Survey

    2013-14 July 9, 2014

    Railway Budget 2014 -15 :

    Summary July 8, 2014

    Politics and Administration

    Income Through Launching of

    Satellite July 18, 2014

    India, the First Nation to ratify

    Marrakesh Treaty July 15,

    2014

    Summary of Economic Survey

    2013-14 July 9, 2014

    Railway Budget 2014 -15 :

    Summary July 8, 2014

    Centre State financial

    relation & Special Category

    Status: Decoded June 24,

    2014

    Economics and Business

    Summary of Economic Survey

    2013-14 July 9, 2014

    Railway Budget 2014 -15 :

    Summary July 8, 2014

    Special Drawing Rights

    (SDRs): How it Works ?? July

    7, 2014

    Centre State financial

    relation & Special Category

    Status: Decoded June 24,

    2014

    Recommendations of Tax

    Administration Reform

    Commission June 17, 2014

    International

    India, the First Nation to ratify

    Marrakesh Treaty July 15,

    2014

    Special Drawing Rights

    (SDRs): How it Works ?? July

    7, 2014

    Project Mausam by Ministry

    of Culture June 22, 2014

    Israel & India : Through the

    lens of history June 4, 2014

    Philippines & US sign security

    Pact May 18, 2014

    2013 Simply Decoded : About Us : Citizen Journalism : Copyright Policy : Privacy Policy : Disclaim er : Contact Us

    Simply Decoded

    6,914Like

    Simply Decoded

    1 hr

    Some relief for farmers !!

    Source : TOI

    Simply Decoded added

    a new photo.

    3 hrs

    Simply Decoded

    16 hrs

    #IronDome defence system is in

    Archives

    Select Month

    Our Partner Website

    Backup of our website is powered by