Bitcoin is the first and most common digital currency Cryptocurrency, known even to those to whom it represents and digital currencies in general a mysterious mystery, some believe that it is suspicious and complex, some consider it suspicious, and others see it as wonderful and a revolutionary development, whether in the financial or technical field, through this lesson we will shed more light on it to learn about its beginning, what it is and how it works.
What is the main purpose behind the creation of Bitcoin?
The beginning of the idea was in 2008, as a reaction to the Great Global Financial Crisis, which severely affected the economic systems in the world due to the financial world's dependence on banks as an intermediary for all financial transactions, and amid a state of public discontent with banks and financial governance systems, the idea of separating banks from financial transactions grew, the idea of decentralization, which means that transactions, whether transfers or electronic payments, take place without the need for confirmation or certification from a third party, in this way, it can be said that we are not Need banks to participate in every transaction.
The main purpose and motivation behind the creation of a digital currency, Bitcoin, was to have full financial authority over bearer funds, or acquirers rather than an intermediary bank that keeps, monitors, or certifies the execution or restriction of their transactions, and away from a government that has the power to seize it, but there were two important factors without which the idea would not work, namely security and privacy.
Thus, Bitcoin was created as a way – before it was a currency – for people to participate in financial transactions without relying on banks or governments. Based on the peer-to-peer idea, which is the method derived from the mechanism of data transfer over the Internet known as "torrent" where files are shared over a decentralized network of peer-to-peer (P2P) users, for example, or you want to download a file from the Internet, and instead of downloading it from a private server or server - gives or denies you access, or monitors you - torrent programs divide files into parts And transfer it to the devices of those who preceded you in downloading the file, and when you want to download the file, they all become your providers, and as soon as the first part is downloaded on your device, you become in turn extended to those who come after you, you all have the file, and you all know that there are those who provide us with the parts and there are those who receive, without knowing who specifically, and the file reaches its destination in the end.
In the same way Bitcoin was created, no one controls your funds, and transactions are created, secured and verified thanks to encryption that divides the data and information of each transaction into pieces distributed encrypted to shareholders' devices, to be verified and secured by the secure decentralized network without any restrictions of any kind.
A brief history of the beginning of Bitcoin?
Bitcoin is the first cryptocurrency, invented by an anonymous person / team under the name "Satoshi Nakamoto" in 2009 who indicated that he started writing its own code in 2007, created a website under the name of bitcoin.org and continued to cooperate with other developers on Bitcoin programming, and many cryptography and blockchain technology experts estimate that Nakamoto - a person or a group - mined about a million pieces of Bitcoin, which was then a central currency Governance is kind of because all the control and coding keys in the network were with Nakamoto before it disappeared in the mid-2010s.
Before Nakamoto's disappearance in mid-2010, he handed over the control of the source code and the network alert key to another developer, Gavin Andresen, a developer and designer of three-dimensional graphics and virtual reality software, based in the city of Amerites, Hampshire, Massachusetts, USA. Gavin Andersen then sought to create a decentralized control of the digital currency. This was the first step on the future development path of Bitcoin to be the image we know today, which is kind of unlike Nakamoto's initially perceived system of control and power.
The year 2017 was a watershed year in the history of Bitcoin, as the number of companies accepting Bitcoin continued to increase, and it gained a great deal of popularity and legitimacy, as Japan passed a law to accept Bitcoin as a legal payment method and Russia announced that it would legalize the use of cryptocurrencies such as Bitcoin, and until 2019 the spread of Bitcoin reached that there were approximately 5,500 Bitcoin ATMs worldwide. In 2020, the Frankfurt Stock Exchange acknowledged quoting the first publicly traded Bitcoin note (ETN), and PayPal announced that it would allow its users to buy and sell Bitcoin on its platform.
