Bitcoin was launched in 2009 based on a paper submitted by a person who named Satoshi Nakamoto.
The bitcoin system is operated by a peer-to-peer type computer network, and transactions (bitcoin ownership transfer: transactions) are performed directly between users without an intermediary. This transaction is verified by nodes participating in the network and recorded in a public distributed ledger called a block chain. Transactions use bitcoin as the currency unit. Because the system operates without a central storage server or single administrator, the US Treasury classifies Bitcoin into the category of decentralized virtual currencies. Bitcoin is also said to be the first
cryptocurrency, but there are predecessor systems such as DigiCash and Ripple, and it is more accurate to describe it as the first decentralized digital currency.
Bitcoin is newly issued in the form of a reward for transaction processing work, and the transaction is verified and recorded in the public ledger by the users providing computing power. This transaction verification / recording operation is called mining, and the miner receives the transaction fee and newly issued bitcoin as a reward. While Bitcoin is obtained through mining, it can be received, purchased, or exchanged for other currencies, goods or services. When sending bitcoins, the user can pay the miner any amount of transaction fees.
Bitcoin allows for extremely low cost payments (and micropayments) with an average waiting time of around 10 minutes without a power agency or special issuer. The movement of money from one node to another takes place in a digitally signed transaction and is broadcast to all nodes in the peer-to-peer network. Proof-of-work systems are used for initial currency distribution and detection of double payments.
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