Bitcoin

• Bitcoin (BTC) is a peer-to-peer (P2P) digital currency system conceived in 2008 by an anonymous person or group with the moniker Satoshi Nakamoto.
• Using the Proof of Work (PoW) consensus mechanism, the network rewards miners for maintaining the system.
• Bitcoin is the first fully autonomous and self-sustaining payment network, where no single party can intervene in or terminate it.
• Since the inception of Bitcoin, hundreds of thousands of altcoins have been created, each offering its own use cases and benefits.
• Bitcoin is also referred to as ‘digital gold’ by some, as only a finite supply of Bitcoin exists and can be mined.

Bitcoin was created by an individual or group of individuals using the pseudonym Satoshi Nakamoto. The true identity of Satoshi Nakamoto remains unknown; there has been much speculation and investigation over the years, but no conclusive evidence has surfaced regarding Nakamoto’s true identity.

Bitcoin uses blockchain technology, and one of blockchain’s main features is the way it records data, which is:

• Immutable
• Transparent
• Decentralised

Immutable means that no entity can modify the transaction records. Transparent implies that anyone can see and verify the transactions on a blockchain via the internet. Decentralised means it is very difficult for a single entity to govern the whole network (although 51% attacks, where a group obtains more than half of mining power, are theoretically possible).

Bitcoin was the first application to utilise blockchain technology (even though the term ‘blockchain’ was introduced after Bitcoin). There are two main stakeholders in the Bitcoin system: regular users, who can access the system to make transactions, and miners, who work behind the scenes to power and maintain the network.

Miners run computers, called ‘nodes’, with a lot of processing power in order to store data, handle and broadcast transactions, and solve a complex mathematical puzzle in order to mine new ‘blocks’ on the blockchain, which contain recent transactions. Every time someone sends a transaction to the Bitcoin network, miners pick up the transaction and complete the steps above behind the scenes.

Miners do not volunteer to maintain this decentralised network for free, however. They are incentivised to do so by receiving mining rewards and transaction fees upon completing the equation and validating transactions. Their reward for creating new blocks comes in the form of newly minted Bitcoin, which is why the process is called mining.

Users can purchase Bitcoin in the Crypto.com App and on the Crypto.com Exchange. Payment options include bank transfer, credit/debit cards, and other cryptocurrencies. Once bought, users can store their newly acquired bitcoins in the Crypto.com App that doubles as a crypto wallet, or other software and hardware crypto wallets.

Bitcoin is always recorded on the Bitcoin blockchain, but ownership of bitcoins is determined via a private key, which is usually stored in a Bitcoin wallet. Wallets are software programmes or hardware devices that allow users to securely store, send, and receive bitcoins.

There are several types of wallets available, each with its own level of security and convenience. These include hot wallets, which are apps connected to the internet, and cold wallets, which are usually hardware devices that securely store BTC offline.

To send Bitcoin, you need a Bitcoin wallet and the recipient's Bitcoin address. Here are the steps to send Bitcoin:

• Log into your Bitcoin wallet.
• In your wallet, navigate to the ‘Send’ option.
• Enter the recipient's Bitcoin address. It is a long string of alphanumeric characters, typically starting with a '1' or '3'.
• Enter the amount of Bitcoin you want to send. Be mindful of transaction fees, which vary depending on network congestion and wallet settings.
• Once the details are correct, click on the ”Send“ button to initiate the transaction.
• Bitcoin transactions require confirmation from the network. Depending on network congestion, this process may take a few minutes to several hours.
• Once the transaction is confirmed, the recipient will receive the Bitcoin in their wallet.