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  • Adem Karagöz

What is Bitcoin?

Bitcoin was founded in 2009 by a person or group with the pseudonym Satoshi Nakamoto. Many people claimed later, that they are the founder of Bitcoin. It’s possible that there is no single founder but rather a number of people who are the founder of Bitcoin. Satoshi Nakamoto created a new form of currency that may not be controlled by any government or institution called Bitcoin. The first bitcoin transactions were made using an application program in 2009, after which it gradually became more widely used.

Today, bitcoin is often compared to cash in the sense that one can transmit money anonymously without sending actual physical currency through bank wires and this is due to its cryptographic properties. It's also popular for purchases on sites like the Silk Road and other dark markets because it's difficult to track down who owns what if someone purchases bitcoin from them. Just like cash, there are no fees for transactions made with bitcoin, and the network can process transactions much more quickly than traditional currency.

A miner is a person or an organization that confirms new transactions, verifies the validity of other users' money and the ability to mine new bitcoins using the internet. A Bitcoin miner is very important because it helps confirm transactions worldwide and thus is important to the overall security of Bitcoin. The mining community plays a key role in keeping all computers running and verifying new transaction online, as well as being crucial to keeping the network secure. Miners are rewarded for doing this work with new bitcoins (approximately every 10 minutes) through 'block rewards'. Bitcoins are currently valued at $50000 (December, 2021) per bitcoin, and there was a maximum of 21 million bitcoins that can be mined using Bitcoin. On May 29th, 2016, 17.55 million of the total 21 million bitcoins were mined by miners worldwide.

A block chain is a public ledger containing all the data BTC transactions in chronological order among users. If a transaction took place between two users, this transaction is then broadcasted to all the other miners in the network through the P2P network, and whichever miner verifies it first gets to place this block into the block chain as such transactions are irreversible so long as every miner verifies and agrees on them (since they are being broadcasted through P2P).

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