There are many types of cryptocurrencies today, Bitcoin is the first to appear and still the most common. So, by whom and how did Bitcoin come about? As the founder of Bitcoin, all sources point to the name “Satoshi Nakamoto”, but the interesting thing is that it is not known who or what this name represents.
Bitcoin is open source software developed by a person or people named Sahoshi Nakamoto. Although the ancestor of cryptocurrencies is Bitcoin, there are many types of cryptocurrencies that have established themselves in the crypto money markets and are adopted by users: Ethereum, Ripple, Tether, Litecoin, etc. some of these.
How is Bitcoin Produced?
As we mentioned earlier, Bitcoin is not a mint-printed paper currency. For the Bitcoin production phase, the term “mining” is used, which works with the “proof of work” algorithm. In other words, just as excavations are made to find gold, mathematical problems are tried to be solved by software to find crypto money. Bitcoin mining “BTC Mining” operates with a structure and Blockchain technology that provides financial transfers, confirms financial transactions and enables the production of new Bitcoins.
People who mine Bitcoin are called “miners”. In Bitcoin (BTC) mining, miners use special software to solve mathematical problems. The mining procedure, which ensures both the security, continuity and operation of the network, is the most important part of the Bitcoin network.
While a miner carries out the transfer transactions that he wants to take place, other miners approve this transaction. In this way, transactions on the network are secured and this transaction is added as a new link to the “blockchain data ledger” network.
Is it safe for the user?
In the use of cryptocurrencies, transactions that can be seen in all systems with access to the network are more open, visible and transparent than all known and used systems.
Cryptocurrency is a safe currency due to its organic structure and not being managed by any central authority, but this structure does not make cryptocurrencies completely safe.
The biggest risk of cryptocurrencies for users is that if the money on physical computers is not transferred to the virtual wallet, it can be lost in the event of a computer crash.
Another threat is that, due to the transaction volume exceeding billions of dollars, the risk of being hacked or cyberattacked is low, albeit low. Because the costs of even organizing such an attack seem quite high for “hackers”.
Is it risky for the states?
Events in Russia and Korea show that some organizations and individuals using cryptocurrencies have developed their own fraud model. Cryptocurrency is perceived as a threat by states because it can be easily used in illegal activities such as money laundering and tax evasion.
Since these coins are kept in virtual ledgers and these ledgers are on the computers of millions of users in a way, it is a serious risk that they cannot be followed by a central authority, while banks and non-governmental organizations increase the pressure on the states concerned.
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