By Anastasia Khanyan – 10th grade
Bitcoin. We’ve all heard of it, yet we all don’t really know what it is, or what it’s used for. Here’s a recap for all.
In 2008, shortly after the economic recession an anonymous person (or persons) went under the name Satoshi Nashomoto and created what is now known as Bitcoin. Bitcoin is a digital currency that you can buy, sell and transfer without the use of intermediaries, like banks. Hence it’s a form of cryptocurrency.
Anyone with a phone or computer can use Bitcoin in just a few simple steps. First you must start by signing up to the Bitcoin app where you immediately receive a Bitcoin wallet. This will then generate an address with which you can share with your friends, or anyone you desire, to exchange money digitally with each other, as long as they also have a Bitcoin wallet.
The Bitcoin network relies innovatively on blockchain technology, “A Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system” in order to allow users to verify all their transactions. Blockchain itself is ensured with cryptography to enforce it’s integrity and order. All transactions are made secure with the usage of private keys, another type of cryptography that’s used to encrypt and decrypt data. Furthermore, just like any regular monetary transaction, digital or physical, these private keys are used as an electronic signature.
Although Bitcoin is one of the most known forms of cryptography, there are many others. Such as Litecoin, Ethereum, Dogecoin, etc.