What is Bitcoin? Define Bitcoin and its history.
Bitcoin is a cryptocurrency that uses cryptography to control its creation and management. It was invented by Satoshi Nakamoto in 2008 and implemented in 2009. Since Bitcoin lacks centralized control, it is said to be decentralized. Transactions are verified by network nodes through cryptography and recorded on a public distributed ledger called a blockchain. Bitcoin has undergone rapid growth to become a significant store of value both on- and offline
-Explain how Bitcoin works.
Digital currency known as Bitcoin functions independently of banks or governmental agencies. It enables peer-to-peer user transactions on a decentralized network via blockchain technology. Bitcoin uses a proof-of-work consensus process to authenticate transactions and pays miners in bitcoin for validating them. Every Bitcoin is a digital asset that can be kept in a digital wallet or at a cryptocurrency exchange. Each and every transaction is documented in a publicly accessible list known as the blockchain. An open-source program called a blockchain powers this network by chaining transaction histories to thwart tampering.
Discuss on the advantages and disadvantages of Bitcoin.
Advantages:
1. Store of value: Bitcoin is often referred to as "digital gold" and is accepted as a store of value by many investors .
2.Self-custody: Individuals can self-custody cryptocurrencies like Bitcoin, giving them complete ownership of their assets without relying on a bank or a single entity .
3. Decentralized: Bitcoin is the most decentralized cryptocurrency, meaning that the network is distributed across many different computers, making it almost impossible for any organization or government to take down the network .
4.Permissionless:Anyone can access the Bitcoin network, regardless of where they live or how much money they have .
5. Secure: Bitcoin is incredibly secure, with public key cryptography ensuring that every transaction is authentic .