What is Bitcoin (BTC)? Bitcoin is a collection of concepts and technologies that form the basis of a digital money ecosystem. Units of currency called bitcoin are used to store and transmit value among participants in the Bitcoin network. Bitcoin is a digital asset used to securely transfer value to anywhere in the world. Bitcoin allows people to transfer payments without reliance on any centralized party, meaning that no government or any third party controls it. Bitcoin, as a consensus network, is powered by its users.
Bitcoin’s decentralized security and trust is made possible by economic incentive between validators through Proof of Work (PoW), in which “miners” compete to find the answer to extremely difficult cryptographic puzzles through hardware designed specifically for this computation. Through the PoW mechanism, miners are incentivized to validate transactions and get rewarded by getting new bitcoin.
Thriving for more than 10 years, Bitcoin has proven to be an antifragile, verifiable, divisible, and scarce currency. With its features, Bitcoin has opened a dialogue and shaken our understanding of trust, especially in the financial sector.