LeoGlossary: Bitcoin

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LeoFinance
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Bitcoin is a blockchain that uses the Proof-of-Work protocol for consensus.

It is a decentralized node system where different computers compete to solve the 64 hash required to add a block. Those that are able to achieve this end up getting rewarded in the cryptocurrency tied to the network, which is also called Bitcoin.

Bitcoin is the most widely recognized of all cryptocurrencies, having been created by the anonymous Satoshi Nakamoto. It is digital money that operates outside the reach of any government.

The ledger is validated by computers all over the world that keep the network running. It is decentralized to the degree that no individual or group can control the network. For this reason, many feel that Bitcoin cannot be shut down.

Bitcoin is disinflationary money with a halving roughly every four years. There is also a cap on how many can be mined, limited to only 21 million ever created.

The smallest unit of account is the Satoshi (Sat) with 100 million equaling one Bitcoin.

Nakamoto introduced the world to Bitcoin by releasing the Bitcoin White Paper on October 31, 2008. It contained an idea for "peer-to-peer electronic cash system".

Bitcoin is seen as the first distributed ledger technology. The major breakthrough was the solving of the double-spend problem.


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