himeed49

himeed49

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Cryptocurrency, or electronic Currency, is the invention of the Internet. Fundamentally, someone in there believed, hey, what if we could create a system where money isn't bound by geography, like the World Wide Web.

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Posted by himeed49 on in Bitcoin & The Blockchain

Bitcoin mining is a term used to describe the process of adding information to the Bitcoin ledger. Sets of information for a particular time period, known as blocks are verified using a mathematical formula. Miners who succeed in solving the mathematical formula, add the block to the block chain - this is the collection of blocks that record every bitcoin transaction from its inception. Miners are rewarded for their efforts with a bonus. The bonus paid to a successful miner is 25 bitcoins, however since there is a finite amount of bitcoins that can be created (21 million), this bonus will decrease as the network grows. Miners are also paid the fees charged for the transactions contained in the block that they add to the chain.

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Posted by himeed49 on in Bitcoin & The Blockchain

The innovation that made virtual currencies possible was the formulation of the blockchain principle. The idea behind a secure chain of blocks containing data sets was first suggested in 1996. However, it was only in 2008 when Satoshi Nakamoto conceptualized blockchain that the idea became a reality. This development is what made Bitcoin possible.

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Posted by himeed49 on in Bitcoin & The Blockchain

Since the introduction of currency as means of trade thousands of years ago, one principle remains the same. Any traditional form of currency is based on a promise. When central banks came into existence in 1600's the promise by the bank was to hold a predetermined amount of gold or silver for every coin or banknote issued. This means that a banknote or coin constitutes a promise to pay the barer in gold or silver to the value of the coin or bank note. Over time currencies have become more complex, particularly in countries using the FIAT system which is based on the trading value of currency, known as a floating currency. However the principle remains the same - all currency issued by central banks relies on a promise. This requires the user to trust the system.

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Posted by himeed49 on in Bitcoin & The Blockchain

The story of crypto-currencies is the continuation of the saga of the economy and the exchange of goods in human society. The development of the Internet is enabled by a new chapter in this epic tale. The possibility of decentralized currency by individuals.

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Bitcoin is widely accepted as being the first cryptocurency or virtual currency. The concept was first conceived by an unidentified group of programmers known as Satoshi Nakamoto in 2008. In 2009 it was made available as open source software.The principle behind bitcoin is that of a mathematical formula, the currency is not controlled by any central bank. Unlike traditional currency, bitcoin's value is not determined by gold or silver.

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