August 24, 2019

About Bitcoin – Who Controls The Bitcoin Network?

By Rabah Hasan

What Is Bitcoin?

Bitcoin is a new form of currency that is used within the digital world. It was created in 2009 and is being used more and more today. This currency can be used to purchase anything electronically just as you would use normal currency like dollars, euros, or pesos. It is run by a network of machines who process each transaction and keep track of the numbers using mathematical algorithms. The best thing about it is that anyone is able to test these machines to make sure they are operating appropriately.

Why use it?
There are many benefits to using bitcoin. One of them being that it is anonymous. Meaning it is not registered or linked to an actual individual. The currency is registered to an address, and you can have multiple addresses. It also isn’t run or owned by any one corporation or authority. Which in turn means that no one is in control of your currency. As mentioned above it is run by a network of machines. Another benefit of using bitcoin is that, unlike a bank account, these accounts are extremely easy and quick to set up. An address is quick and easy to set up, no personal questions asked. It is very budget-friendly and cost-effective.

Who Controls The Bitcoin Network?
No one! There isn’t an absolute authority who reigns over the currency. Therefore no one can deduct currency from your account unless you take action. It is controlled by all of the users of its currency. Everyone who decides to use it decides which software and version they will be using. Even though there are developers updating the software constantly, they can not dictate what is being done with the bitcoin. This is a very nice incentive in using it because the owner has complete and absolute control in what happens within their accounts.

How Does It Work?
From the standpoint of the average consumer, bitcoin is just a program that acts as a virtual wallet. You can send currency through this program, as well as receive it. From a computing standpoint, the entire network uses something called a “BlockChain”. What this “BlockChain” does is contain every single transaction ever made using bitcoins. Any computer running the software has access to the blockchain and can verify transactions. Also, every unique address has a unique electronic signature, which gives the owner of the address complete control of what comes out of his or her account. A transaction can not take place without that unique signature. So you can see how secure using bitcoin can be.