What is Bitcoin?

 

Hi,Today I am going to tell you

What is Bitcoin?

What bitcoin is and how today's two most popular versions of bitcoin differ from each other.

As its name suggests bitcoin is an electronic currency but unlike government issued currencies there is no single entity that issues bitcoin or is in charge of processing its transactions.

Before bitcoin,it was not possible to make electronic payments without the help of a third party like a bank or payment processor.Payments were often slow expensive and not available to everyone.

To solve those problems bitcoin operates without a trusted third party instead it works as a purely peer-to-peer electronic currency meaning that payments are sent directly from one person to another.

How does that work simply computers all over the world use mathematical functions to independently verify all bitcoin transactions. Which are then added to a public permanent list of transactions called the Blockchain.

The blockchain is stored on all of those computers and works as a secure universal record of who owns what early on 

In bitcoin's history there are very few transactions being processed by the network but as time went on more and more people started using bitcoin and so the number of transactions to be processed went up too.

Eventually the bitcoin network needed to be updated to keep transactions fast cheap and reliable but because there wasn't consensus on how this update should be performed or whether it should be implemented at all.

Bitcoin ultimately had to split into two separate currencies for that update to happen.The version that implemented the originally planned update is called Bitcoin Cash

Which is listed on exchanges using the ticker symbol BCH

Bitcoin Cash can currently process over 100 transactions per second with fees reliably less than a penny per transaction.

The other version which made different updates to the network kept the name Bitcoin and the original ticker symbol BTC

Bitcoin can only process between three and seven transactions per second and is now considered by many to be digital gold instead of digital cash.Its fees have ranged anywhere from several cents to tens of dollars per transaction depending on the number of people trying to use the network at once.

That's it.I hope everybody likes this blog.

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