This is a quick overview of the history of bitcoin in a nutshell. It is the first decentralize digital currency and was propose in 2009 by a group of computer scientists and cryptographers, called cypherpunks. Founded with an interest in privacy and freedom, the cypherpunks aimed to solve a critical problem with the traditional financial system. By eliminating the need for trusted institutions, they helped create a new way to transact money on the Internet.
Bitcoin price grew in popularity, its value remained below its previous peaks. Result, more money flows into the crypto coin ecosystem. This caused the total market cap of all cryptocurrencies to reach $300 billion. Some of the top banks like Barclays, Citibank, and Deutsche Bank are investigating partnering with Bitcoin. The blockchain technology has revolutionized the fintech industry.
Bitcoin in a Nutshell
Bitcoin was ever launch, Satoshi Szabo was already working on Bit Gold. He hope to create a safe, digital currency that would not be manipulate by third parties. He was unsuccessful in his initial endeavor,as well as the project went bankrupt. Failure of Bit Gold paved the way for many other cypherpunks to make their own versions of digital currency. Adam Back contributes to this project by developing a proof-of-work system that is similar to Bitcoin.
Bitcoin is originally create as a digital currency to send money over the Internet. Its creator was an anonymous 37-year-old computer programmer who remained anonymous. He was not able to reveal his true identity, and the reason as well as for the anonymity is that he could test as many private keys as atoms in the universe. Hard to crack the system, the invention has helped to create a new digital P2P transaction system. History of bitcoin in a nutshell.
Satoshi’s anonymity was crucial to the as well as success of the project. After his white paper was publish, law enforcement cracked down on the nefarious use of cryptocurrencies. Satoshi would receive a harsh sentence if he had been identify, and his walk away as well as from the project was vital to the project’s foundation as a trust-minimized, decentralized financial system.
Bitcoin is a digital file
Bitcoin is a digital file store on a computer called a digital wallet. Upon receipt, the recipient can send part or all of a Bitcoin to the digital wallet. Every transaction in the system is recorded in a publicly accessible list called the blockchain. This makes it possible to trace the history of the coins that have been transferred. To maintain the integrity of the system, as well as miners must process transactions and reward them with block rewards in Bitcoin.
The Silk Road was a turning point in the history of Bitcoin. Spite of its illegality, it became a thriving market that was support by the libertarian ideals of its creators. It was even the first cryptocurrency exchange. In July 2010, the first mining pool called Slush as well as appeared, bringing together the resources of users who wanted to mine Bitcoin. In November, the market capital for Bitcoin surpassed $1 million. A vulnerability in the Bitcoin protocol led to the emergence of a massive hacking attack that resulted in nearly 184 billion BTC. The exploit was fix as well as and the rest of the Bitcoin community could use it to their advantage.