Know the Distinctive Features of Bitcoin
The technology for creating a decentralized currency has been developed by leading world-class programmers over the years. However, for a general acquaintance with bitcoins, you can study its distinguishing features:
All transactions within the system occur directly between participants according to the P2P principle. There can be no third parties in order to introduce mediation. This method provides low fees and processing speed.
The Bitcoin system does not provide for the main governing body, as well as the main server. Management and maintenance of the network is carried out through communication nodes that are equal to each other and necessarily independent.
The absence of any limits
Many payment systems provide various limits for transactions. This is to prevent a possible system reboot. In addition, in the classic version of the organization of the payment system, information is stored for a specified time, and after that it is automatically deleted so that the space is freed from time to time for new information. However, there is no such thing in the Bitcoin system. There are no various limits on the amount and number of bitcoin transfers, and information on transactions performed is never deleted and recorded indefinitely. You can choose the Bitcoin Up app for all kind of bitcoin trade and transactions.
The system is absolutely independent of the location of the participants in the transaction. Any operation with funds will be carried out with equal speed, even if there is a distance of 5000 km between the sender and the receiver. All this happens because transactions inside the Bitcoin system are confirmed by the global system of communication nodes that are connected to it.
System users do not need to enter personal information in order to register a wallet or send a transaction. Instead of this information, the system uses a personal hashed address, which includes a combination of 27-34 characters. However, the register of transactions is freely available, therefore, everyone who wants to use the system has the option of a coin path from the very beginning to the end, namely the current holder.
A very important point, which means that absolutely all transactions within the system are impossible to cancel, stop or block.
The Bitcoin system cannot be hacked and tampered with. The database is reliably protected, saves information about all completed transactions on the network, the codes of each spent electronic coin. It uses cryptographic data recording, anonymity and guaranteeing complete confidentiality. To access the bitcoins that are stored on the wallet, you must provide a special password. Such a private key is issued exclusively to the wallet owner, stored in a special file.
Bitcoin working principle
As already noted, Bitcoin is a cryptocurrency of the transactional system of the same name. It is acceptable for use by every interested user who has registered his own wallet in the system and has a certain amount of cryptocurrency.
When a user passes registration and opens a wallet in the Bitcoin system, he receives a private and public key. The password for accessing the wallet acts as a private key, that is, it is like a PIN code from a bank card, which should not be transmitted to anyone. The public key is the address where the coins are stored, that is, it is like a bank card number. The public key can be transferred to other participants in the system, for example, to carry out a payment transaction with details.
It is noteworthy that for any transactions to go to a bank or other financial institution is not necessary. In the system, all operations occur directly from the wallet, which is very convenient, fast and safe. When sending electronic coins, the user needs to enter only the payment amount and the wallet address to whom the funds are addressed. After the data is entered and the payment operation has passed, information about the completed action is transmitted to the network. Here, independent users check its legitimacy, after which, in the case of a positive decision, it is included in the general data registry. Only after all the above actions, the transaction is confirmed and is reflected in the wallet at the addressee.