Bitcoin can be defined as a type of online currency that is not printed, unlike the other currencies. This is due to the fact that there are absolutely no physical representations for this cryptocurrency. This digital currency is produced by different businesses and users by way of the procedure known as mining. Users take control of Bitcoin by making use of electrical devices. It also serves as one of the best mediums for completing online transactions using different platforms. There are virtual wallets used for keeping and securing Bitcoin.
Some of the Main Characteristics of Bitcoin
It is important for the users to have a clear idea of the characteristics of Bitcoin in order to use it in the best way possible. After all, it is impossible to use a product or a service in the right manner until and unless an individual is aware of the features of that particular product or service. Some of the main features of Bitcoin include:
One of the most important objectives served by Satoshi Nakamoto, the developer of Bitcoin, when creating Bitcoin, was the independence of the network from all governing authorities. Bitcoin has been specifically designed in a way that each and every individual, machine, and business involved in production and transaction verification becomes an integral part of its huge network. Furthermore, even if a certain part of the Bitcoin network gets down, the funds keep moving.
It is quite true that the senders of conventional forms of electronic payments are generally identified for the purpose of verification and also for complying with legislation and anti-money laundering. However, this is not the case with Bitcoin. Bitcoin users use the network in semi-anonymity. This means that there is no central authority or validator and thus users are not required to identify themselves while sending Bitcoins to the other users.
It is the protocol that checks all past transactions when a certain transaction is requested. This is done by confirming that the sender possesses essential Bitcoins and the authority needed for sending them. Bitcoin network does not ask for the user’s identity. Each and every Bitcoin user is spotted by his or her wallet address. This is the method used for tracking transactions.
One of the most important features of Bitcoin is that transactions within this network cannot be reversed. This is something that makes Bitcoin transactions completely different from the transactions made using other electronic fiats. The irreversibility of Bitcoin transactions is because of the unavailability of a central validator that can confirm the money refund. It is completely impossible to change a transaction that has been recorded on the Bitcoin network and it is already an hour since the procedure had been practiced. This feature might not go well with many users but it speaks of the high level of security offered by the Bitcoin network.
Speaking of the characteristics of Bitcoin, there are other features worth noting like the divisibility, transparency and quick operational time of the network.