#Share1BNBDaily Bitcoin is a digital payment system and one of the very popular cryptocurrencies around the globe. It was founded in early 2010 and released as open-source software. Bitcoin is not operated by a single person or an organization; instead, it is operated by everyone in the network of the Bitcoin blockchain, which is typically a P2P network. Bitcoin gave us the first glimpse of the blockchain, and it is the first decentralized digital currency whose ledger is maintained by blockchain.#squarefamily
Bitcoin transactions take place directly between users, which does not include an intermediate or third party. In this P2P network, nodes verify the transactions that are done by users, and these transactions are recorded in a distributed ledger, which is available to all the nodes in the Bitcoin network. Bitcoin stands out from fiat modes of payment. Some of the features that make the Bitcoin different from fiat currencies are its simple setup process, transparency, anonymity, faster transaction speed, decentralized mechanism, and lower transaction fee (Zhou et al., 2020). The main problem with banks is that they make you go through a complex process to just create an account with them. But in the case of Bitcoin the configuration process is very straightforward, and moreover, it is free of cost. With banks, there is the process called “know your customer” in which you have to show your personal identification to create an account with that bank. But a Bitcoin user does not need to link any personal identification information to their Bitcoin address. In fact, the user can have as many Bitcoin addresses as they wish.
Every Bitcoin transaction is recorded in a linear, public, distributed ledger, in simple terms, a blockchain. Due to this immutable way of storing the transaction information, the Bitcoin once transferred to a Bitcoin address cannot be refunded. As there is no third party or any sort of intermediatory involved in a transaction of Bitcoin, the payment process is much faster than any traditional banking system.
However, Bitcoin charges a small fee for international transfers because of the validity mechanism involved in the transaction processes (Cocco et al., 2017). A large chunk of this fee is claimed by the Bitcoin miners who validate the transaction and store the transaction in a block, which then is chained to the Bitcoin blockchain. The Bitcoin cannot be controlled by a single person or an organization because it is not centralized. The Bitcoin transactions are processed within the network with the help of a group of nodes that work together to mine the Bitcoin cryptocurrency, which does not require any form of a central authority.
