Bitcoin and Its Benefits

Bitcoin and Its Benefits

Bitcoin News
15 June 2019 by bitfeed
Bitcoin and Its Benefits

Electronic payment systems have become an important element of the financial life of the whole society. Today, there are several systems similar to Bitcoin, each of which has its own data transfer protocols and an individual currency unit. Bitcoin is a fairly new kind of money since the innovative payment system was created on the basis of research and development of cryptographic currencies.

The new cryptocurrency has a number of features that fundamentally distinguish it from the money of the banking system. Its creator is Satoshi Nakamoto. Many consider it a pseudonym, under which lies one person or a whole group of brilliant programmers and mathematicians.

Fast transactions 

All transactions are carried out without intermediaries, which significantly reduces the time of data transfer. After the network has processed the payment, the means of payment will be immediately transferred to anyone and anywhere. It takes just a few minutes. However, the translation is irreversible.

So, it is necessary to confirm with the signature a section of data that will be collected in blocks and transmitted over the Bitcoin network. To sign transactions using confidential information in the form of a secret key. This allows you to mathematically prove the approval of the operation by the purse owner. Therefore, it is not possible to change a transaction after it is transmitted to the network.

Anonymity in transactions 

The undoubted advantage of operations with Bitcoins is the absence of the need to leave any personal data in the system. Their independence in management is guaranteed by the fact that payments and funds cannot be blocked or confiscated.

However, it is worth considering the fact that all transactions between the sender and the recipient are displayed in a publicly accessible database. No names are written here, but email addresses of all users are displayed. Modern technologies can associate a specific wallet address with a computer IP. Thus, in some cases, there is the likelihood of calculating a physical address.

But there are several ways to increase privacy:

Use the new wallet for each transaction.

The use of bitcoin mixers. This is a collective transaction that allows you to mix bitcoins of different users during the operation. In this case, the payment needs more time and will require payment of the commission.

Preserving the anonymity of the IP address of the provider and the user. In this case, you can use the onion routing Tor. In this case, the packet of data in encrypted form passes through three proxy services. In this case, the computer will know the address of the further dispatch after it decrypts the received file.

All this makes it difficult to make or even impossible the process of comparing the original source of funds and the final physical recipient.

Global World Currency 

Bitcoin is a decentralized digital currency. It is created through computational processes and works exclusively on the global Internet. The currency is not controlled by anyone, so the emission occurs through the functioning of millions of computers located around the world.

The new cryptocurrency system is considered an alternative to the traditional financial system. It does not belong to any state. The total number of bitcoins that go into circulation is limited to 21,000,000. But at the moment more than half have already been released, and every day they are getting smaller.

This is a new virtual world currency that operates in many countries. However, some states are trying to limit the use of cryptographic currency. Many modern people see the great promise of Bitcoin and hope that it will become one of the first digital global currencies for both users and for business.

Low commission 

Since such a cryptocurrency is not controlled by any state, bank or organization, the commission for international transfer between wallets is not charged at all, since there is no single governing body. It also remains minimal when exchanging bitcoins for other digital currencies.

In some cases, payments are not subject to commission:

Transaction over 0.01 BTC.

Payment bitcoins have a lot of evidence.

Translation does not take up much space in the network unit.

The commission itself can be set by other Bitcoin owners who have added your transaction to the found block of coins. These are miners who are coin getters and process your transaction. With their help, you can reproach the process of transferring funds from one purse to another. It is their services and pays an additional commission, but it differs in the minimum size. The commission also depends on the amount of the transaction.

Bitcoin system is a new generation of digital currency. Its features are not only in the decentralized nature, the anonymity of payments and transparency. It is created and works exclusively on the Internet. To emit funds using a variety of computers around the world, a program is used to calculate mathematical algorithms.

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