What is Bitcoin? FAQ. Find answers to recurring questions and myths about Bitcoin. Table of contents General What is Bitcoin? Bitcoin is a consensus network that enables a new payment system and a completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. Who created Bitcoin? Bitcoin is the first implementation of a concept called "crypto-currency", which was first described in 1998 by Wei Dai on the cypherpunks mailing list, suggesting the idea of a new form of money that uses cryptography to control its creation and transactions, rather than a central authority. Satoshi's anonymity often raised unjustified concerns, many of which are linked to misunderstanding of the open-source nature of Bitcoin. Who controls the Bitcoin network? Nobody owns the Bitcoin network much like no one owns the technology behind email.
How does Bitcoin work? Is Bitcoin really used by people? Yes. How does one acquire bitcoins? Legal Economy. Breaking down the Bitcoin. Innovation. The Bitcoin protocol is not just about sending money from A to B. It has many features and opens many possibilities that the community is still exploring. Here are some of the technologies currently being researched and in some cases, turned into real products and services. The most interesting uses of Bitcoin are probably still to be discovered. Control against fraud An unprecedented level of security is possible with Bitcoin. Global accessibility All payments in the world can be fully interoperable. Cost efficiency With the use of cryptography, secure payments are possible without slow and costly middlemen. Tips and donations Bitcoin has been a particularly efficient solution for tips and donations in several cases. Crowdfunding Although not yet easy to use, Bitcoin can be used to run Kickstarter-style crowdfunding campaigns, in which individuals pledge money to a project that is taken from them only if enough pledges are received to meet the target.
Micro payments Dispute mediation. For Individuals. Bitcoin is the simplest way to exchange money at very low cost. Mobile payments made easy Bitcoin on mobiles allows you to pay with a simple two step scan-and-pay. No need to sign up, swipe your card, type a PIN, or sign anything. All you need to receive Bitcoin payments is to display the QR code in your Bitcoin wallet app and let your friend scan your mobile, or touch the two phones together (using NFC radio technology).
Security and control over your money Bitcoin transactions are secured by military grade cryptography. Works everywhere, anytime Just like with email, you don't need to ask your family to use the same software or the same service providers. Fast international payments Bitcoins can be transferred from Africa to Canada in 10 minutes.
Zero or low fees Bitcoin allows you to send and receive payments at very low cost. Protect your identity With Bitcoin, there is no credit card number that some malicious actor can collect in order to impersonate you. Beginner's guide to bitcoin - CoinDesk's Information Center. A Bitcoin FAQ. Updated 9/30/2013 -- © Christian Wagner Short Version 1) Should I buy Bitcoins? No. 2) But I keep seeing all this stuff in the news about them and how No. Tech journalism is uniformly terrible, always remember this. 3) How does this shit work? No, it really doesn't. Long Version 1) I really want to understand how Bitcoin works. Okay, you asked for it. Bitcoin is a decentralized "cryptocurrency".
Bitcoin is also the subculture that has sprung up around this software, which includes additional software that is not part of the core design. Bitcoins users have files called "wallets". (If you don't understand public-key cryptography, do some reading because you can't really understand Bitcoin without it. Transfers between wallets are recorded in "blocks", which are verified by the distributed cryptography system. The first reason is that Bitcoin transfers can contain optional transaction fees which are paid to the miner that verifies the transaction. 2) That was painful to read. I'm tired. Yes. For Businesses. Bitcoin is a very secure and inexpensive way to handle payments. The lowest fees out there Bitcoin's high cryptographic security allows it to process transactions in a very efficient and inexpensive way. You can make and receive payments using the Bitcoin network with almost no fees.
In most cases, fees are not strictly required but they are recommended for faster confirmation of your transaction. Protection against fraud Any business that accepts credit cards or PayPal knows the problem of payments that are later reversed. Fast international payments Bitcoins can be transferred from Africa to Canada in 10 minutes. No PCI compliance required Accepting credit cards online typically requires extensive security checks in order to comply with the PCI standard. Get some free visibility Bitcoin is an emerging market of new customers who are searching for ways to spend their bitcoins.
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