Cryptocurrency Bitcoin (Part-1)

Definition of Bitcoin and Its Functions
#Definition of Bitcoin:

Bitcoin is a digital currency that does business between two people without the involvement of intermediaries such as banks or other financial institutions.
In a whitepaper published by the mysterious creator of Bitcoin, Satoshi Nakamoto, Bitcoin is "It is a peer-to peer variant of digital cash which would permit online payments to be made directly from one figure to another without the need of the financial institution".

To comprehend Bitcoin, it is essential to comprehend the structure that is the basis as well as the way of working in the Bitcoin ecosystem, and the scope of use across the globe. Bitcoin is crucial to comprehend the fundamental structure and how it operates within the Bitcoin ecosystem as well as the variety of its use across the world.
..........................................................................................................

#Functions of Bitcoin

Bitcoin can eliminate intermediaries through the technology that underlies it, blockchain.
If you need to transfer money to someone else, one option is to give cash or employing an intermediary that is trusted (for instance banks). Both methods, whether physically cash (with the central bank of the country as the guarantee) or electronic transfer require some sort of intermediary (in the case of electronic transfer it is a bank or other bank or financial institution). If intermediaries are involved there are transaction fees.

Blockchain technology can eliminate intermediaries through replacing the trust intermediaries provide to the market using digital proofs using CPU power for computing.
..............................................................................................................

The trust in cryptography is integrated into Bitcoin by using a wallet, a public key, and an individual key that is part of the Bitcoin program.

...............................................................................................................
Anyone can set up a Bitcoin wallet at no cost when they download the Bitcoin software. Every wallet has two keys: a public and private key.

The public key acts as an address, or an account number through which anyone can get Bitcoins.

A private key act as an electronic signature that one can transfer Bitcoins. The name implies that private keys must only be owned and used by the person who owns them, whereas public keys are able to share with any person who wants to take Bitcoins. This is the reason you have seen news reports about Bitcoins being lost because of a private key not being accessible or being stolen by hackers.

Bitcoin addresses have owners who aren't identified explicitly however all transactions through the bitcoin blockchain remain publicly available.

Since the beginning of Bitcoin in 2009, each transaction has been recorded in a ledger. This is considered to be indestructible as well as non-changeable and irreversible.

Bitcoin transactions are verified by the telecommunication network's nodes using cryptography, and then recorded in a distributed ledger decentralized known as the blockchain. This is among the primary differences between Bitcoin as opposed to other cryptocurrency assets, in which there is an exchange that is centralized (like an exchange like the Stock Exchange) that all transactions must be validated or routed.