One of the world’s revolutionary currencies is bitcoin Cryptocurrency, which was more opted and flexible transaction among people. The baltimorepostexaminer.com is there is no intermediary like banks or central governments in between. So, many people would have confusion that, how the concept of bitcoin emerged, and who found Bitcoins. All these questions will be answered in the following sections of the article.
Bitcoin-a quick intro
The most important feature of a bitcoin is blockchain technology, which is a public ledger that stores every transaction as a block. When the memory of this transaction record block is full, it will be added to the transaction chain. The blockchains are generally downloadable and can be stored in any computers connected to the network. Bitcoin transactions are validated and broadcasted to all the computers by the blockchains. The computers connected to the network are known as nodes.
The blockchains are stored and available to the computers, which are connected to the bitcoin network. Hence, there is no possibility of a hacker to break this virtual chain and hack a single computer. The hacker has to break multiple chains which are impossible. Now lets us discuss the history of bitcoins in the following section.
History of Bitcoins
In the year 2008, there was severe inflammation in currencies, and as a result, there was a fall down in the stock market and monetary value. During that time, in September of 2008, a white paper was published talking about bitcoin.org and how a Cryptocurrency would work. The white paper was published in the name of an unknown personality, Satoshi Nakamoto. After this paper publication, in the year 2009, a first-ever bitcoin was mined by Satoshi and it was published in ‘The Tines’ on January 3rd, 2009. The first bitcoin is termed as ‘genesis block’. Many people were attracted first to this bitcoin, as everyone was suffering from severe currency inflation. This first Bitcoin was transacted by Satoshi to Hal Finney who was a famous cryptographer.
After this, Satoshi and his group made many innovations in Bitcoins and no one knew about the identity of his group. During 2011, when the Bitcoins became stable, Satoshi left the group, and till now he has been a mystery.
In the year 2006, a magical card game called Mt.Gox was launched by a programmer named Jeb McCaleb. Initially, there was no much attraction to this game. But as he came to know about, many people need a platform for buying and selling Bitcoins; he decided to allow bitcoin transactions in his online site.
Bitcoin Pizza Day
In the year 2011, Lazlo Hanyecz, a Florida programmer and another British man, ordered two pizzas for 10,000 bitcoins to initiate the bitcoin transaction. This was the first bitcoin transaction made for a purchase, which happened on May 22nd, 2011. Hence May 22nd is celebrated as Bitcoin Pizza Day. If you calculate the value of 10,000 bitcoins now, it would be $90,000,000!!
Silk Road and Bitcoins
The attractive feature of a bitcoin transaction is, it remains anonymous. That is, the transactions can be public like people in the bitcoin network would know about transaction details and bitcoin balance. But the person associated with the transaction will never be known. Misusing this anonymity feature, Silk Road, a dark market web-based retailer, sold many illegal drugs and items, as the bitcoin transactions are untraceable. This black market retailer is also known as Dread Pirate Roberts. Almost many users became active bitcoin users through this site, and it was found that during October 2014, 1.2 million transactions were made by this site. The transaction accounted for 9.5 million bitcoins. Later in 2013, US forces after several attempts arrested Ulbricht, the owner of this illegal activity through Silk Road. Even after that, many black markets emerged and allowed buyers and sellers to utilize a large amount of money, without any rules and regulations, which was the big drawback of Bitcoins.
Bitcoins suffered many troubles like a rise in illegal activities, price value fluctuations, and lots more. But despite all these hindrances, Bitcoin became the people’s favourite cryptocurrencies, due to its security features and flexibility in making a transaction at less cost and in a quick manner.