Did you know that in addition to coins, there are also real electronic ones? Bitcoin is one of these. With Bitcoin refers to both the electronic money that the open source software that manages the system that peer-to-peer trading network for financial transactions. Bitcoin was founded in 2009 as an alternative to the current coin of the various states, so as to be free from the control of public authorities and shared on the network. The bitcoin transactions, have been made ​​by private individuals, companies or developers, are always traceable to ensure the success of the exchanges. Let’s see how it works.

how-bitcoin-works

The bitcoin, the electronic currencies are purchased and can be saved on the computer (in the so called “wallets”) or contracted (instead of the normal banks). For purchases and payments are then exchanged via a dedicated web address. If a merchant accepts payment in bitcoins , we can send via the Internet the value of the product we are buying with this electronic money . But you have to be careful to make the right payment, because it is structured as an exchange operation can not be undone!

To ensure ownership of their virtual coins, the bitcoin system is entrusted to the encryption (cipher) to increase security in the trade and keep away hackers that could steal our money electronically . To constrain the bitcoins to their owner and prevent the use by others, we create digital signatures, double the electronic keys, one public and one private and confidential. When Person A wants to transfer money to B, B sends its public key, adds to the amount you want to transfer and approves it secretly with his private key.

Bitcoin is an alternative to real money, which is spreading a lot. But you have to pay attention to a few things. The same developers of Bitcoin, for example, warned that the purchase prices of the coins varies continuously, due to the continuous variation of demand and offer, and that for this reason turn their savings into bitcoin would not be wise. Also, warn about the importance of protecting the data on your wallet, as if it were a real wallet. Finally, inquire well before you start to invest their money in this system so innovative.