bitcoin

1. definition of bitcoin

 2. the genesis of bitcoin 

3. how bitcoin works

 4. forks of bitcoin

 5. adoption of bitcoin

1. definition of bitcoin

Bitcoin is a decentralized (crypto) digital currency that works using blockchain technology. It is the first digital currency in the world, and the largest digital currency in terms of total market value and the highest price.

 2. the genesis of bitcoin 

On October 31, 2008, an anonymous person named Satoshi Nakamoto published a research paper for Bitcoin under the title "Bitcoin: A Peer-to-Peer Electronic Cash System", [1] explaining how Bitcoin works. , how to protect it from piracy, and the nature of transactions that can be conducted through it, and the currency was launched on January 3, 2009, according to the mechanism described in this research paper. Several years have passed since the existence of  Bitcoin without achieving any significant value, and its use was limited to collectors of digital collectibles and those interested in technologies before it gradually began to gain a high value and achieve record prices estimated at tens of thousands of dollars per Bitcoin. Bitcoin today - in addition to being the first digital currency in the world - has the largest share in the digital currency market in the world, and it is also the highest price compared to other currencies.

3. how bitcoin works

Bitcoin works - as is the case with most digital currencies - using blockchain technology, which was designed and described in several research papers before the launch of Bitcoin, and the basic principle of this technology is not to store transaction data and currency balances on central servers - as is the case Bank balances, for example -, but on all network members' devices. This technology to prevent double-spending and transaction fraud rely on mining, a process whereby machines expend significant computing power — hard for potential attackers to match — to validate and create new blocks, for which several new coins are "minted" with each new block. , in addition to transaction fees, which are calculated based on the number of transactions contained in the new block The speed of execution of the transaction is determined by the transfer port. Bitcoin relies on ensuring its security on what is known as "Proof of Work", a mechanism that obliges those who authenticate and create new blocks to prove the amount of computing power - or work - spent on creating the block coding known as "hash". Thus, ensuring the authenticity of this block and its direct link to the previous block whose hash the new block includes to keep the blocks within a chain linked to each other.

Bitcoin - as is the case with the various major digital currencies - witnessed several branches from its core network, which led to the creation of new currencies derived from it. The same, but it contains additions that guarantee more security, transparency, and freedom for users, such as the use of three keys generated using the Elliptical Curve Digital Signature Algorithm (ECDSA), which allows users to cancel transfers or change their details after they have been made, and also helps protect users from losing their money in the event They lose control of their wallets.

Wrapped Bitcoin and its symbol (WBTC) is a mirror of Bitcoin, and it was launched in 2019 on the Ethereum network (ERC-20), allowing it to be traded on the Ethereum blockchain that hosts many decentralized finance (Defi) currencies, and its price is set at level 1: 1 about the Bitcoin currency, so its price changes as a reflection of the movement of Bitcoin and not according to the supply and demand for the Rapid Bitcoin itself. [4] Bitcoin Cash and its symbol (BCH) was established in 2017, and the main purpose of its establishment was to avoid some of the defects of the Bitcoin network, Such as long transaction execution periods and high wages, by raising the maximum size of one block to 8 MB, and again to 32 MB in October 2021.

 5. adoption of bitcoin

Today, Bitcoin has become an integral part of the global financial system. As its total market value is estimated at hundreds of billions of dollars, it has also become part of the investment portfolios of many companies and investment funds, in addition to the launch of many investment funds based on bitcoin or related commercial and technological activities. (NASDAQ: BITO), which invests in Bitcoin futures, the Greyscale Bitcoin Trust (NASDAQ: GBTC), which invests directly in Bitcoin, each share of which is worth approximately 0.0009 BTC, and the Valkyrie Bitcoin Miners ETF (NASDAQ: WGMI). ), which mainly invests in bitcoin mining companies.