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PERSONAL FINANCE CLASS, CRYPTOGRAPHY…………..10

Finance-Api-Fiapi10epub.

BITCOIN.

LESSON TEN.

Place order, and scanning of barcode is the economic transaction activities of the future, when everything return to virtual setting.

There will be physical stores, but there will not be physical persons,as meta-verse is set to take charge.

I, think is the very reason of the invention of blockchain with it shared ledger.

Hello,my Cryptocurrency fellows,in this class, we’re going to look at Bitcoin, which is the first cryptocurrency on which digital shared ledger (Blockchain) was invented.

Just like any other legal tender, Cryptocurrency is an economic value as a medium of exchange,the only difference is that it uses encryption technicalities to control or oversee the creation of monetary units and verify the transfer of funds.

Without much stories:-

-Bitcoin is an unregulated digital currency.

-Bitcoin uses blockchain technology as it transaction ledger.

-Bitcoin uses peer-to-peer transactions, where there’s no banks or third party to manage financial activities.

Thereby allowing online payments between persons without going through financial institutions.

Which are the first blockchain technology success that gave rise to many cryptocurrencies.

We should know that:-

-Bitcoin is open source, and designed for the public.

-E’ery one can take part because nobody owns or  control Bitcoin.

-Bitcoin is low processing fees digital currency in a world wide payments system of fast peer-to-peer transactions with it unique encryption techniques thereby covering usage that is not covered by previous payment system.

We the Bitcoiners shun the banks banquet and other financial institutions, except they step up to the game.

We(Bitcoiners) can do and undo without the interference of a third party.

With all that said, for the purpose of this class,we look at the following.

-Bitcoin basic for a new user.

-Bitcoin balance- blockchain.

-Bitcoin transaction-private keys.

-Bitcoin processing-mining.

(1)A beginner can start out with Bitcoin without understanding the Bitcoin basic technicalities.

Once a new user have a Bitcoin wallet on his device,it will generate his first Bitcoin address,Which others will follow thereafter when the need arise.

With the simple graphical representation,as you can see from the YouTube video below.Once you have your Bitcoin address you can sent for payment or receive payment.

(2) Bitcoin balances-blockchain.

Following the integrity and order of blockchain, once Bitcoin transaction are confirmed,they are added to the blockchain shared ledger e.g

Sender 1011001-Reciever 1100101.

A cryptography that make it difficult for an unauthorized user to read or decrypt.

(3) Transaction of Bitcoin-private key.

When a transfer of value is added to the blockchain, Bitcoin wallet keeps a secret code as private key, which is a mathematical proof of sending from the owner’s wallet.

The secret code are use to enforce Cryptocurrency transaction by signing the transaction.

The signature is such that,it prevents the transaction from been altered by any body once it has been initiated.This is how it works as you can see from the YouTube video below.

(4) Mining process-A consensus system in distributed array which confirm pending transactions and thereby adding such to the blockchain with the following objectives.

-Enforcing chronological order in the blockchain.

-Following strict cryptography rules, transactions must be packed in a block-fit, which has to be verified by the network.The essence of the cryptography is to prevent previous blocks from been modified so as to avoid invalidation of the subsequent blocks.

-Mining prevent individual or group from controlling what is included in the blockchain or replace part of the blockchain.

In brief summary, this is how Bitcoin evolved as invented by unknown persons with a pseudonym Satoshi Nakamoto in the year 2008 and launched in the year,3 January 2009.

Bitcoin has a supply limit of B 21,000,000 with a block reward of B 6.25 and halved after every four years.

Once Bitcoin issuance reach B 20,999,999.9769 it will be halt.

El Salvador and Central African Republic officially uses Bitcoin as a legal tender.

https://bitcoin.org/en/how-it-works

https://en.mwikipedia.org/wiki/Bitcoin

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