Bitcoin open source software.
The developers all over the globe are smiling ear to ear because they all get to be Bitcoin developers at no cost at all.
Any of them can easily make their own version of Bitcoin without a problem.
And just like we said earlier, this currency really belongs to the user and the developer – it belongs to the phenomenon we call the Internet. There’s no government featuring anywhere.
This decentralization has led to the added advantage of a lower transaction fee if you use Bitcoin.
But then, if you don’t have a centralized system, how do you keep a track of all this digital money?
The currency in the real world is printed, released, and regulated from a real physical place.
How do you know the digital money you just spent or how much you saved – do you even get to save in terms of Bitcoin? Just as you make a transaction, just like it.
Just as you make a transaction, just like in the physical world, you need to make an entry on a ledger.
Now it’s a virtual ledger – a cryptographic ledger. And it’s in the cloud – so you know it’s accessible from anywhere, and anytime you want to.
But, instead of simply writing your transactions one after the other, you first compile a block out of your transaction. The next step has you.
Once you have this block, you just need to add it to a seemingly long chain of blocks.
But just before you do such an addition, you’ll have to solve quite a difficult puzzle.
It is only after you have an answer for the puzzle, will you be able to add the transaction to the ledger, in addition to being paid Bitcoin as the transaction fees.
The beautiful thing about this is, how adroitly this technology uses the power of the Internet – especially to verify each transaction, and making sure that a person doesn’t spend the same digital money twice.
You buy digital currency using your physical money, and you’re given a virtual key to the address of that Cryptocurrency. This key is what you use to access and approve any transactions. The rates to buy Cryptocurrency fluctuate wildly, as it’s an extremely volatile market. As we earlier, you can buy Bitcoins; but, it’s not necessary, there are other alternatives like Altcoins, Monero, Litecoin, and such that you could look into.
There are people out there – the Bitcoin developers, who are doing an awesome job!
But most people are still coming to grips with the idea of a currency that is virtual in nature. The mistrust is definitely a big reason for the Cryptocurrency market being volatile in nature. The concept is new, it looks risky – but it’s absolutely not, it’s decentralized, hassle-free, and it’s showing a lot of potentials.
The dream of a world that is completely cashless and a cent percent digital does seem a bit more attainable with the advent of digital currency.