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Introduction of cryptocurrency as technology was revolutionary. An innovative experiment by Satoshi Nakamoto (unknown yet, whether an individual or a group of people) done in 2008 gave us what is called Bitcoin. The sole intention to develop the cryptocurrency was to provide a platform to transact smoothly, secretly and in a decentralized way.
The cryptocurrency development company has been in demand since then. Bitcoin is the first cryptocurrency of the world introduced the concept which later formed the base of many cryptocurrencies. However, bitcoin remains the most popular amongst them all.
Let us understand the term cryptocurrency, bitcoin, its technology, i.e. the blockchain technology, advantages and limitations related to bitcoin, its market, bitcoin ATM, and how to transact using it. To Know the theory is one thing, but to uncover its potential and to use it, you will require the bitcoin exchange software.
Table of Contents
What Is Cryptocurrency?
Cryptocurrency is a digital currency that works on the encryption of data. Encryption means converting data or information from its raw form into codes so that it becomes less vulnerable to unauthorized access. There are many cryptocurrencies in the market such as Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH), Stellar Lumens (XLM), EOS (EOS), Litecoin (LTC), and Cardano (ADA).
There are some similarities in the cryptocurrencies mentioned above; however, on the other hand, have their unique identity as well. They all are digital currencies; however, what makes them stand apart from each other is the fact that all are based on different technologies.
Bitcoin is the first cryptocurrency of the world and the most popular amongst them all. Let us know a little bit about the technology on which the popular bitcoin is based, i.e. the blockchain technology that will also help you in the blockchain development.
Blockchain technology
The blockchain is a digital ledger or database that has all the data stored on it. It is an ever-growing collection of records composed in blocks that are linked with one another with the help of cryptography.
Cryptography is the process/method of encrypting and decrypting data in the blockchain to initiate and complete a transaction. It helps to transmit and circulate the sensitive data all over the network and ensures security. The data on the blockchain network is immune to any changes hence guarantees the authenticity of the transactions.
The blockchain technology has succeeded in checking the double-spending problem without the intervention of any third-party and prohibits infinite reproducibility. That means it ensures that the transaction has been made only once and avoids duplicates of entries.
Introduction to Bitcoin
Bitcoin was invented in the year 2008 and launched in the year 2009. It is based on open source code software, is a decentralized digital currency that means it is not regulated by any type of intermediaries. They are obtained by the process of mining as a reward.
The first block was mined by its inventor Satoshi Nakamoto on 3 January 2009, and the name of the block was “genesis block”. It was the beginning of the blockchain and the first-ever bitcoin mining. Bitcoin has now become a widely accepted digital currency and is readily used for the exchange of goods, services and other types of currencies.
Advantage of bitcoin
Many benefits are associated with the digital currency bitcoin. The advantages are the reason behind the popularity of the
- Privacy: Bitcoin uses blockchain technology to store the data. It is visible to all the users operating on the network; however, the identity of the user is not revealed. This means no compromise on confidentiality and 100 % privacy is guaranteed while using bitcoin.
- Exchanges: Users get the convenience to easily exchange their bitcoin currency in exchange for the fiat money, i.e. fiat currencies on a standardized exchange rate. Apart from exchanging for fiat currencies, the user can also exchange their bitcoin for any other cryptocurrencies using bitcoin exchange. Bitcoin exchange maintains the liquidity in the bitcoin market.
- Blockchain length: Bitcoin works on the blockchain technology that stores all the transactions and related data on the open digital ledger. Bitcoin is said to expand its chain as long as the mining process continues with the help of the miners. The miners create new blocks regularly so as to keep track of the consistent growth of blockchain. The new blocks constructed are used for new transactions, and the old ones contain the previous records.
- Private Keys: Each user gets a dedicated key. The private key is a combination of alphabet and numerics and serves as the unique identity of the user. There are two ways by which the user can get the private key. Either the user can manually create a key with the combination of numerics and alphabet or can opt for a key generator to automatically generate the key.
Understanding Bitcoin wallet
To start owning and exchanging bitcoins, you first need to understand the role of bitcoin wallet. A bitcoin wallet is a software program (bitcoin exchange software) that enables you to exchange bitcoins with the help of a dedicated private key. It serves as the platform for you to perform transactions of bitcoins.
There are many types of bitcoin wallets; however, we will be covering the four types of wallets that are widely used, i.e. desktop, mobile, web and hardware. Keep scrolling to learn about these mentioned wallets.
- Desktop wallet: The desktop wallets are meant to be used on desktop computers, allowing you complete access to the bitcoin exchange platform. You can also store the private key on the desktop software; however, it is recommended to store it in multiple places.
- Mobile wallet: These wallets provide you with access to exchange bitcoins remotely using your smartphone via an application. You can purchase or sell bitcoins on your private key using a QR code with a few taps.
- Web wallet: Web wallets offer the user versatility of accessing their account using a desktop computer or the mobile. However, the user needs to stay cautious while using a web wallet as the private key is stored online, in this case, making it vulnerable when compared with the other two.
- Hardware wallet: Instead of storing the bitcoins on desktop software, mobile application or online, the hardware wallets store the confidential data on a physical device, making it the safest way to transact for the bitcoins.
There are many other types of wallet facilities as well; however suiting your requirement, the developer will guide you with the most appropriate kind of wallet facility for your usage.
Companies like BR Softech that are experts in the field of developing bitcoin wallet apps will provide you with a secure wallet for the bitcoin exchange.
Bitcoin ATM
Till now you have learned about the cryptocurrency, bitcoin, blockchain technology and the advantages of bitcoin. Taking it further, it is now essential for you to get familiar with the bitcoin ATM.
Bitcoin ATMs serve as the kiosk for purchasing bitcoin in exchange for real cash. However, there exist some bitcoin ATMs that allow you to sell the bitcoin you carry on your private key and get some money in return, offering you the convenience of bi-directional activity.
There exist two types of bitcoin machines, i.e. cash kiosks and ATMs. The former lets you purchase or sell the digital currency for real cash, and the latter allows you to do the transaction with the debit card. What makes them related is that both operate using the internet and the process is online. The bitcoin ATM is not connected to any bank account directly to the bitcoin exchange.
The trend of setting up bitcoin ATMs is high in the USA with over 2,342 bitcoin ATMs spread all over the state. However, with time and increased acceptance and usage of these digital currencies, the numbers are going to rise up.
Pros & Cons of Bitcoin ATM
Multi-level Marketing
As of now, when you have got familiar with the terms, concept and technology of the cryptocurrency and bitcoin, let us now talk about the multi-level marketing and the importance of bitcoin MLM software.
Multi-level marketing is also known as pyramid selling referral marketing is the concept in which the revenue of the MLM company is gained from the many individual participants that have become the part of selling the company’s products and services in return getting the commission on each sale.
The bitcoin MLM software will help you promote your cryptocurrency with the help of agents and attract customers and investors. This way, you will be able to earn high returns by trading in these digital currencies.
Conclusion
The article covers all the essential topics that the user needs to know about the cryptocurrency and bitcoin. It is necessary to research the cryptocurrency development company before handing over responsibility for the development of bitcoin exchange software for safety concerns.
BR Softech is a leading IT and software solution company that has extended its assistance in the process with remarkable client satisfaction.
