Bitcoin

Coin in Common: Litecoin (LTC)

Bitcoin

Cryptocurrency's beginnings trace back to the enigmatic figure known as Satoshi Nakamoto, a pseudonym representing either an individual or a group who developed Bitcoin—the world’s first cryptocurrency.

In 2008, Nakamoto introduced Bitcoin to the world by publishing the whitepaper titled "Bitcoin: A Peer-to-Peer Electronic Cash System." This groundbreaking document outlined the creation of a decentralized digital currency that is secured through cryptographic principles and operates independent of central authorities.

Despite years of speculation, the true identity of Satoshi Nakamoto remains a mystery. However, Bitcoin’s influence and adoption have grown exponentially since its inception.

How Bitcoin Works

Bitcoin's entire system is powered and maintained by a global network of thousands of computers—referred to as nodes—operated by individuals participating in the Bitcoin network. Each transaction is validated and stored on a distributed ledger known as the blockchain, ensuring transparency and security.

Wallets: Public and Private Keys

Bitcoin is stored and managed using digital wallets, which consist of two essential components:

• Public Key: Similar to a mailing address, a public key allows users to receive Bitcoin from a sender without exposing sensitive information. It is the address that others use to send Bitcoin to your wallet.

• Private Key: Comparable to a password, a private key grants access to your Bitcoin. It must be kept secure and never shared, as anyone with your private key has complete control over your funds.

There are no physical coins in the Bitcoin network. Instead, a Bitcoin represents a digital unit of value maintained on the blockchain. Transactions are executed by transferring Bitcoin between wallets using the corresponding public and private keys.

Bitcoin’s creation laid the foundation for thousands of other cryptocurrencies, making it the cornerstone of the cryptocurrency revolution.