Bitcoin is a purely digital currency, and there is no physical form is available. Bitcoin is a software with a set of protocols and processes. Bitcoin is successfully developed after hundreds of attempts. You can use the bitcoin for the payment and investing purposes. Now, most of the retailers are accepting the bitcoin payment, and it is legal in most of the countries. With the free bitcoin, anyone could start trading because the entry is low.
Bitcoin is a decentralized network that runs on the protocol known as a blockchain. In the early stage, both blockchain and bitcoin defined as identical. After the blockchain has evolved into a separate concept, by using similar cryptographic techniques thousands of blockchain have been created. Blockchain can explain as when two parties agree to the contract they could start their trading. There is no third party involved in this contract. Thus, it enhances the possibilities of peer-to-peer financial transactions without the involvement of banks or any intermediary.
A bitcoin transaction is not meant to be done from human to human. In the future, there are higher possibilities of implementation of internet of things. We could see self-driving cars and using the blockchain wallets for moving the car. Blockchain is distributed which is meant to be a public system. Anyone can view the transactions but, it is highly complicated to update the blockchain ledger. There is no central authority, the user themselves create and verify the transactions.
The process of maintaining the distributed public ledger is known as mining. Miners trade cryptocurrency among themselves and record the transactions on the blockchain. The mining process is difficult because it is time-consuming, and miners rewarded with free bitcoin for verifying the transactions. The network of miners receives the transaction of data, and they run the data through a cryptographic algorithm. It generates a hash, a string of numbers and letter does not reveal the information. The information validity alone verified. Mining is expensive and requires a lot of electricity to solve them.
The users who are participating in the bitcoin network are not relevant to the ins and outs of the technology. They usually buy bitcoin from the online platforms and supply through a bitcoin exchange. Bitcoin traders need to protect their holdings since it has no physical presence. The transaction process is simple, the sender needs to know only the address of the receiver, and the identity is verified.