Today, Bitcoin turns 10. The World’s first cryptocurrency was came into existence on 31st, October 2008. It is a very first blockchain whose story had begun from an anonymous group or person named Satoshi Nakamoto who released a document in online cryptocurrency forum in which wrote about, how Bitcoin would work and defined Bitcoin as a peer to peer electronic cash system. The goal of the white paper was to explain how various parts of bitcoin’s protocol would work and keep it secure. This whitepaper can be found at bitcoin.org.
Bitcoin allows two people to make a transaction with each other, no matter wherever they are in the world. Its main benefit is that there is no control of any centralized authority or institution over Bitcoin. However, in contrast of normal money, they are all in control of centralized authority and these authorities can monitor the flow of these money.
In this type of cash system, a new kind of database is used known as Blockchain which records each and every bitcoin transaction and this is maintained by everyone in the network and this database can be seen and downloaded by anyone. A block in a database stores a transaction in a sequential manner and collection of these blocks are known as blockchain. The information in a block is secured by an algorithm called proof of work.
proof-of-work is used to create new blocks for the database also known as mining and the reward from mining a new block is given to miner by creating a new bitcoin in the system. this is the only way that a bitcoin can be generated.
The first released bitcoin was version 0.1 written in C++ by Satoshi and published in January 2009 under MIT license. Anyone can download the source code, execute it and join the network as a node. There are more than 10,000 nodes that are running the bitcoin network. However, Satoshi got disappeared in late 2010 and his identity is still unknown till this date.
Today, 1 Bitcoin is valued at USD 6,313. 99(Rs. 4,61, 583) as compared to USD 208.77 (Rs. 12,890) in November 2013