Characteristic of Bitcoin




Bitcoin has several important features that set it apart from government-backed currencies.

Enat DigitalBiz @ Characteristic of bitcoin

1. It's decentralized
The bitcoin network isn't controlled by one central authority. Every machine that mines bitcoin and processes transactions make up a part of the network and the machines work together. That means that, in theory, one central authority can't tinker with monetary policy and cause a meltdown - or simply decide to take people's bitcoins away from them, as the Central European Bank decided to do in Cyprus in early 2013. And if some part of the network goes offline for some reason, the money keeps on flowing.

2. It's easy to set up 
Conventional banks make you jump through hoops simply to open a bank account. Setting up merchant accounts for payment is another Kafkaesque task, beset by bureaucracy. However, you can set up a bitcoin address in seconds, no questions asked, and with no fees payable

3. It's anonymous
Well, kind of. The user can hold multiple bitcoin addresses, and they aren't linked to names, addresses, or other personally-identifying information. However...

4. It's completely transparent
Bitcoin stores details of every single transaction that ever happened in the network in a huge version of a general ledger, called the blockchain. The blockchain tells all. If you have a publicly used bitcoin address, anyone can tell how many bitcoins are stored at that address. They just don't know that it's yours.
There are measures that people can take to make their activities more opaque on the bitcoin network, though, such as not using the same bitcoin addresses consistently, and not transferring lots of bitcoin to a single address.

5. Transaction fees are minuscule
Your bank may charge you a $10 fee for international transfers. Bitcoin doesn't.

6. It's fast
You can send money anywhere and it will arrive minutes later, as soon as the bitcoin network processes the payment.

7. It's non-repudiable
When your bitcoins are sent, there's no getting them back, unless the recipient returns them to you. They're gone forever.
So, bitcoin has a lot going for it, in theory. But how does it work, in practice?

Now let see how it works by creating a bitcoin wallet

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