Bitcoin is a digital currency which uses a peer-to-peer network to transfer money (borderless) from one wallet to another. This network uses block-chain, and cryptography methods maintain the whole structure. The community (users and businesses) supports the system, and there is no central authority.
The name comes from Coin and Bit. 1 Bitcoin is equal to 1,000,000 Bits.
Essential information:
- Bitcoin uses a code BTC which is the equivalent of 1 Bitcoin (1 BTC).
- It's the main cryptocurrency on the market, ranked #1.
- To own any amount of Bitcoin, you need to have the so-called crypto wallet (registered on the blockchain).
- In general, to use your wallet, you need a device (smartphone, tablet, PC) and Internet connection.
There are paper wallets, but it's not the right choice for a very beginner.
What makes the crypto-coin different? You can not touch it, you can not hold it in your hands, because it's 100% digital. That's the reason the first members of the Bitcoin community to be programmers and developers. They understood quickly the brilliance of this 'thing' and its potential, along with the high values.
What is P2P network
It's a network of connected computing machines (computers, servers, mobile devices) using the Internet. It uses a distributed methodology which doesn't require a central server. These machines share information in different formats according to the networks' rules.
What is Blockchain
That's the backbone which maintains the P2P network of BTC. It includes structured information attached to blocks and a connection between them in a chain (using cryptography). These blocks connect each other using the crypto principles. That's the reason the coin to has such a nickname 'crypto'.
The blocks include information about network activities. In this case, it's information about the transactions. It is also known as Ledger (because of its functions).
