• What are digital currencies? A guide for beginners: …
Supplement ‹ 1 › : ..
- In early 2009, an unknown programmer or group of programmers under the pseudonym “Satoshi Nakamoto” introduced “Bitcoin”. Satoshi described it as a “peer-to-peer electronic cash system”, which is completely decentralized, meaning that there are no dedicated servers or central controlling authority. This concept closely resembles peer-to-peer file exchange networks.
However, one of the most important problems that any payment network must solve is double spending: a fraudulent method of spending the same amount twice. The traditional solution was: .. a trusted third party “central server” that keeps records of balances and transactions. However, this method always involves an authority that basically controls the money and has all the personal details.
But in a decentralized network like Bitcoin, each participant needs to do this task, and this is done through the Blockchain technology: which is a public ledger of all transactions that take place at any time within the network, and it is available to everyone, so everyone on the network can see the balance of each account...
To be continued... $BTC
