In our previous article, we talked about the ideology of Satoshi Nakamoto when he first created Bitcoin. We also touched upon how Bitcoin has become so much more in just a few years in regards to both technology and the monetary aspect.Over the course of several articles, we will talk about the technology associated with Bitcoin, and why it could prove to be invaluable the global population. But let’s start at the beginning first, shall we?
In our previous guide on “What is Bitcoin?”, we talked a bit about the monetary value associated with the Bitcoin protocol. As you may remember, we talked about how the Bitcoin technology can be used to send money to anyone else in the world. But how do these transactions work exactly?
Bitcoin Transactions: How, What and Why?
Bitcoin transactions take part between two people on the Bitcoin network in a true peer-to-peer fashion. Person A sends a [piece of a] Bitcoin to user B, who will see the transaction on the blockchain in mere seconds. And that is the beauty of Bitcoin transactions; they take place instantaneously and are visible on the public ledger we call the blockchain.
One of the many mysteries surrounding Bitcoin and its technology is how to prove that you are the rightful owner of these digital pieces of data called “BTC.” After all, if you can’t prove you own the [pieces of a] Bitcoin, you can’t spend them either. This will be a rather technical explanation, as there is no other way to bring the message across.
Digitally Signing Transactions
Every time someone tries to send coins to another user on the Bitcoin user, their Bitcoin client will take one step “behind the scenes”: digitally signing that transaction. You can compare this step to putting your autograph on the receipt every time you pay with your credit card, but rather in a digital form without exposing any of your personal information.
When it comes to talking about Bitcoin, there are way more things you can do with the currency than most people are aware of. Whether you want to buy or sell something or even earn a bit of BTC for doing a task, there are a ton of possibilities at your disposal. Let’s kick off this guide series with buying cigarettes online in exchange for Bitcoin, shall we?
Note from the author: I have personally tested the services listed below and received my orders without any problems.
One of the most pressing questions on the mind of a lot of people around the world is: “What is Bitcoin?”. While there are several possible answers to that question, it should be answered with another question. Are you interested in the monetary aspect, the technological aspect, or the ideology behind Bitcoin? In this article, we will start by answering the last question first.
The Bitcoin Ideology
When we talk about Bitcoin to our friends, family or even people we just ran into a few minutes ago, it is hard to explain this concept without going into technical details. For most of us Bitcoin enthusiasts, we have become so accustomed to using certain terminology which is rather obscure to novice users.