Introduction to world’s largest and most widely adopted cryptocurrency — The Bitcoin

Introduction to world’s largest and most widely adopted cryptocurrency — The Bitcoin

It all started back in 2008 when a person named Satoshi Nakamoto started working on introducing a completely new financial system to the world. He named it ‘Bitcoin’ which he described in his whitepaper as ‘decentralized and peer to peer electronic cash’. Satoshi Nakamoto launched Bitcoin in January 2009, and he made it completely open source so the developers around the world can start working on this new decentralized financial system. 

 

When it was launched, Bitcoin got famous in the cryptographic community and especially ‘cyberpunks’ which is a community of world renowned cryptographers and cyber security experts. Part of the reason was that cryptography was at the core of Bitcoin. It is this cryptography that make it completely decentralized so the Bitcoin network doesn’t rely on any centralized authority, like a bank. 

 

Satoshi Nakamoto went undercover after a few months of the public launch of Bitcoin and nobody knew who he was, because he only communicated via forums using his pseudo identity. However, the Bitcoin network continued to grow and a lot of developers and cryptographers tuned in to take care of the code and do all the necessary improvements. 

 

 

How Bitcoin works and what is the price? 

 

 

As with any other cryptocurrency nowadays, Bitcoin network consists of different kind of nodes. There are four primary nodes in the bitcoin network: 

 

  1. Full Nodes
  2. Super Nodes
  3. Light Nodes
  4. Mining Nodes

 

All of these nodes are connected with a peer to peer network that uses ‘Gossip Protocol’ to send and receive messages. This peer to peer network is secured by a strong consensus algorithm — Proof of Work or commonly known as PoW. This PoW consensus algorithm is responsible for securing the entire Bitcoin network and make it immutable, so that every transaction that happens on the Bitcoin network can’t be removed or modified. 

 

All the transaction records are kept secure by Full Nodes, Super Nodes and Mining Nodes. Users on the network who send or receive transactions are called the Light Nodes (which include things like mobile wallets, cold storage, etc). Light Nodes aren’t a part of the mining process, they are on the network just to send and receive transactions. Bitcoin Mining is a sophisticated process where the miners invest in expensive computing equipment to solve a cryptographic puzzle in the Proof of Work (PoW) algorithm. 

 

 

Conclusion

 

 

Bitcoin went through some extreme fluctuations from 2017 to the end of 2018. At its peak, a single Bitcoin was worth nearly $20,000 USD which caught the crypto world by storm. As of today 1st September, a single Bitcoin is traded for $9,620 with the total market cap of just over $172 Billion USD. This enormous market cap makes Bitcoin the largest cryptocurrency in the world. 

 

Bitcoin has a daily 24h trading volume of just over $11 Billion USD. In total, only 21 Million bitcoins would be generated which is its hard cap for the total supply. Unlike other cryptocurrencies, Bitcoin investors tend to HODL because they see it more as a store of value like gold or silver. Being one of the best and widely adopted cryptocurrency, we recommend Bitcoin to every investor who wants to jump into the crypto world. 

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