Introduction to Bitcoin A Successful Cryptocurrency
Bitcoin has been around for a decade and is still the most popular cryptocurrency. But what makes this token different from other cryptocurrencies? What factors have contributed to its success as a cryptocurrency?
The Bitcoin Network is Secure.
Bitcoin is secure because of the Blockchain. The Blockchain is a decentralized ledger that records all transactions made in Bitcoin. It’s public and transparent, making it very difficult to forge transactions or hack into the system without being spotted by other users on the network.
The Blockchain Offers Security.
The most vital benefit of blockchain technology is its security. A blockchain is an immutable ledger, meaning it cannot remove once it is listed.
The Blockchain offers a public ledger; anyone can view any part of it at any time. It makes it transparent and tamperproof as well.
Blockchains use encryption to store data in a decentralized manner, so no one person controls access to information on their network.
Bitcoin transactions don’t have intermediaries.
It means you don’t need a bank or credit card company to process your payment. It also means that there are no transaction fees, and you can send and receive anywhere worldwide without restriction. You can use it to pay for goods and services or store it in a wallet on your phone or computer — it’s up to you!
Transactions are Fast.
Bitcoin is a cryptocurrency and payment system that uses peer-to-peer technology to operate with no central authority or banks. The network is peer-to-peer, and transactions occur between users directly, without an intermediary. These transactions are verified by network nodes through cryptography and recorded in a publicly distributed blockchain. It was created by an unknown group or person under Satoshi Nakamoto and released as open-source software in 2009.
The Cost of Transacting in Bitcoin is Low.
One of the most significant advantages of using bitcoin is its low transaction costs. This transaction cost is meager compared to other payment methods like credit cards, bank transfers, or ACH payments. According to research published by Bitpay in 2017, it costs about $0.10 per bitcoin transaction and $1 for every 100 tokens transferred through the Lightning Network protocol (LN). It means you can send or receive millions of dollars worth of bitcoins at no additional cost!
Compared with credit cards and bank transfers, where each transaction comes with a fee ranging between 2–3% per transfer, sending money via this currency doesn’t require you to pay any extra charges apart from the miner fee, which is only several cents per thousand transactions.
Digital Currency that Any Central Authority Cannot Control.
Instead, it is a distributed ledger and peer-to-peer network. The system also relies on a consensus network known as miners responsible for validating transactions and adding them to the public roster.
Bitcoin was created almost ten years ago, in 2009, by an unknown person or group with the alias Satoshi Nakamoto. Cryptocurrency has been able to sustain its popularity over this long period because of these key characteristics:
- Bitcoin Is A Distributed Ledger
- Bitcoin Is A Peer To Peer Network
- Bitcoin Is A Decentralized System * Bitcoin Is A Consensus Network * Bitcoin Is A Public Ledger.
Conclusion
The success of this cryptocurrency has been primarily due to its decentralized nature and ability to offer a secure system for sending money around the world. Many other cryptocurrencies are available today, but they have yet to match Bitcoin’s success in market cap or price point.
