What is so Special about the Bitcoin System?

All previous monetary systems have relied on trusting somebody, whether it was the king, town hall, the federal reserve, or banks. BitCoin doesn’t. It’s guaranteed instead by the laws of mathematics, and that’s why it has everyone from technologists to economists very excited.

The November 2008 white paper by ‘Satoshi Nakamoto’ focused on solving a very hard technical problem. One of the benefits of cash is that it doesn’t require intermediaries. The Bitcoin is a system which allows you to do anonymous currency transactions and no one will come to know about the payment or about all other info related to the payment, including who sent it, who received it, etc. It makes it possible to transfer large amounts of bitcoins 24/7 at low transaction costs.

Satoshi did it by making the system – a peer-to-peer network – controlled by no central authority but run by a network of contributors and freedom enthusiasts, who donated their time and energy to this innovation. There is no Internet server to shut down to terminate Bitcoin. It exists merely as an application running on your computer, which communicates with other Bitcoin users over the Internet. This “mesh” Bitcoin network is called a peer-to-peer network, and this design makes it effectively indestructible, as long as the medium of communication (Internet) exists.

Bitcoin is the world’s first invention of a decentralized electronic currency, with no central authority or trusted parties whatsoever, as its inventor originally describes. Not even the Bitcoin developers themselves have special control of Bitcoin.

Bitcoin is one of the most fascinating and least understood phenomena of our times.

Share this:

Leave a Reply

Your email address will not be published. Required fields are marked *