“Bitcoin (BTC) is the first cryptocurrency. It is a virtual currency created to function as money and a means of payment beyond the control of anyone.”
Bitcoin can be referred to as a peer-to-peer online currency that functions effectively without the need for a third party.
This means that all bitcoin transactions take place directly between equal, independent network participants, with no need for a third party like a bank, financial institution, or government to permit or enable them.
According to the founder of Bitcoin, an anonymous person/group known as Satoshi Nakamoto, Bitcoin was created to allow “online payments to be sent directly from one party to another without going through a financial institution.”
Who Founded Bitcoin?
The founder of Bitcoin is an unknown individual or group of individuals that goes by the codename “Satoshi Nakamoto.” They created the idea of an electronic peer-to-peer cash system as it is written in a Whitepaper. To date, the true identity of Satoshi Nakamoto has not been verified though there have been rumours and speculation as to who Satoshi Nakamoto might be.
However, while Nakamoto was the original inventor of Bitcoin, as well as the author of its very first implementation, he handed the network alert key and control of the code to Gavin Andresen, who later became the lead developer at the Bitcoin Foundation. Over the years a large number of people have contributed to improving the cryptocurrency’s software by patching vulnerabilities and adding new features.
What Makes it Unique?
Bitcoin has a significant advantage over other cryptocurrencies because it was the first to emerge globally.
The emergence of the first cryptocurrency has created a conceptual and technological basis that subsequently inspired the development of thousands of competing projects.
Furthermore, because no central body controls Bitcoin, it is immune to censorship. Bitcoin transactions cannot be blocked or censored by any government or institution. As a result, Bitcoin provides users with financial flexibility and privacy that traditional fiat currencies do not.
The Supply of Bitcoin
The entire supply of Bitcoin is controlled by its software and will never exceed 21,000,000 coins. New currencies are generated through a process called “mining”: a process where transactions are broadcast throughout the network, and distributed computers (miners) pick them up and bundle them into blocks, which are then safeguarded by sophisticated cryptographic equations.
And as of January 2023, 19.39 million bitcoins had been mined, with around 1.7 million bitcoins still unallocated. The entire quantity of bitcoin is limited to 21 million.
How Is the Network Secured?
Bitcoin is secured by the SHA-256 algorithm, which is part of the SHA-2 family of hashing algorithms and is utilized by Bitcoin Cash (BCH) and numerous other cryptocurrencies.