what is 'bitcoin'?

Bitcoin is a digital currency allowing p2p (peer-to-peer) transactions within a decentralized network. It was the first cryptocurrency invented by Satoshi Nakamoto in the year 2008.

Origins of the Bitcoin network

In 2008, the year of the second most severe banking crisis, Satoshi Nakamoto decided to release his whitepaper of Bitcoin. It is still unclear whether Satoshi Nakamoto is the name of a real person, a group or a just code name. What we know is that Bitcoin was the first major success of establishing digital cash.

Bitcoin and its underlying technology Blockchain have turned out to be a revolutionary, cutting-edge technology with abundant application possibilities. In the history of humankind, Bitcoin enabled for the first time the safe exchange of money without the need of any central intermediary and without knowing the identity of involved parties. Data is not stored in one central place, it is distributed across the network. Satoshi Nakamoto created an incentive-based system making the users of the system to verify transactions themselves, through mining. Massive mining farms were the consequence. It is safe to say that Bitcoin has come a long way until 2008. Satoshi probably didn’t anticipate that his invention would result in a new industry sector, containing thousands of decentralized cryptocurrencies, all with the aim to transform industries to the better.

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