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| What is Bitcoin? | |
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| Bitcoin is a decentralized electronic cryptocurrency created in 2008 by Satoshi Nakamoto. “Decentralized” here means that Bitcoin has no central servers for transaction processing or storage of funds. Bitcoin emission is limited; no more than 21 million coins will ever be issued. According to calculations, Bitcoin production will end in 2140.
Bitcoin transactions and emissions are regulated by an extensive peer-to-peer network. Bitcoin uses a distributed public universal database, spread through a decentralized peer-to-peer network. The network uses digital signatures and is supported by a proof-of-work protocol to ensure security and legitimacy of funds in use. To guarantee that a third-party cannot spend a user's bitcoins by issuing false transactions in their name, Bitcoin uses public key cryptography. This is a system of digital signatures, in which each person has one or more addresses or wallets, each with an associated pair of public and private keys. A user can sign a transaction with their private key, and the rest of the peers in the network can validate the signature using that user’s public key. Bitcoin is the most widespread cryptocurrency. Its total market value is over $171 billion. One can exchange, buy or sell Bitcoins on many sites. Despite the fact that using Bitcoin does not formally require user identification, the currency is not completely anonymous.
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