Bitcoin: Money of the virtual world

Investment over the internet is itself a risk factor, which forever makes the investor unsure about the safety and security of his/her money. Taking this risk factor as a core, a new way of highly secured currency keeping was developed called Cryptocurrency.

Cryptocurrency is a digital currency that involves the use of advanced encryption technique called cryptography. It provides the investor a high end safety and security, that supports a clear scrutiny of the transactions’ history, controls the creation of additional units and verifies the transfer of assets.

It includes decentralized control of currency that means there is no involvement of any third party like any government body or any middle man during and after the transaction which ensures the prevention of any extra charge debenture under the name of internet handling fee or transaction fee etc. The decentralized control of cryptocurrency works through a blockchain.

A blockchain or a distributed ledger is a list that is composed of records, called blocks, which are connected to each other. Each block possesses a hash that links it to the other blocks. All these blocks contain the history of transaction made. All the transactions of a blockchain are unmodifiable, i.e. once they are registered and digitally signed by the current investor, they cannot be modified. It ensures the overall safety from hackings and illegal defalcations.

The first blockchain was made by Satoshi Nakamoto, in 2008. It gave rise to the first cryptocurrency and a payment system throughout the world viz BITCOIN.

Bitcoin is the first decentralized cryptocurrency that is not run by any government body or centralized bank or even single handedly. It is facilitated by strict P2P (Peer-to-Peer) network that ensures no interference of any intermediary. All the transactions are verified as well as recorded in blockchain.