How is Bitcoin different from other cryptocurrencies is the major query that holds most of us doubtful. There are several important features that make Bitcoin different from government-backed currencies:
- Decentralized Platform: No central authority controls Bitcoin Network. Bitcoin serves peer-to-peer network. Every machine that mines Bitcoin and processes transaction makes up a part of the network. Each peer carries complete history and balance of every account. That is, no single authority can control or try to improve/amend with monetary policies and cause a meltdown. It’s like you own the driving seat and you control every action.
- Easy to Install: Opening a bank account might have turned a bit easier but still some banks follow old school techniques. Either it’s just opening a simple account or going through payment transactions, they still make you jump hoops. However, here you can set up your bitcoin address in seconds, and enjoy complimentary benefits. No fee payable.
- It’s Anonymous: At times we don’t wish to share our details with the other person while doing transactions. Bitcoin serves you well in this scenario. You are known through your Bitcoin address and no strings attached to your name, address or other personal identifying information.
- Transparency: Though no strings are attached still there is one place that keeps the record of all your actions. Bitcoin stores details of every single transaction that ever happened in the network. A huge version of a general ledger, called Blockchain stores this information.
Though people transacting with you might not know your name, they can easily know how many Bitcoins are stored at that address, if you carry a publicly used Bitcoin address. Blockchain reveals all.
- Transaction Fees are miniscule: International transfers still make you loosen your pockets. Banks charge you some value for transactions. Bitcoin doesn’t.
- Fast: Banks works as per set protocols. It may happen that you encounter delays in receiving your payments or making some. But with Bitcoin, you can send money anywhere and it will reach the other party in minutes, as soon as the Bitcoin network processes the payment.
- It’s non-repudiable: Once gone, It’s gone like forever unless the other person makes a similar move. Being more precise, when your Bitcoins are sent, there’s hardly any chance of getting them back, unless the recipient returns them to you.
There is a lot more going in Theory. But How does it work?
Explore through How Bitcoins Are Mined, what happens when a Bitcoin Transaction Occurs, and How the Network keeps track of everything… in order to keep yourself acquainted over the currency and it’s working.