The main difference is that the network
Posted: Tue Feb 18, 2025 6:00 am
After a few years of credit crisis, in which banks and economies increasingly fell into disarray, an anonymous genius has been coming up with a solution for the seemingly problematic outdated system for 2 years now. Bitcoin , an Open Source project started in 2009, seems to be taking the honour of being the first digitally distributed and anonymous means of payment of realistic value.
All nonsense of course, there are already several online 'credits' that represented a real value in dollars or euros? The Facebook credits, the Microsoft Points and the Linden Dollars: all expressible in money or convertible to cash. And that is precisely the problem. Real money, in coins or notes, only has value because you can give it away and then no longer have it. Digital money, which consists only of a binary number series, is relatively easy to counterfeit and can therefore be spent 2 or even 3 times, also known as 'double spending'. Counterfeiting is apparently easy and therefore a reliable intermediary is always needed, a kind of bank, a kind of PayPal. Bitcoin has solved this problem.
Peer-to-peer
Satoshi Nakamoto, about whom no data is known and whose existence is shrouded norway phone number list in mystery, is the inventor of the system and the writer of the software. It is a simple principle based on a peer-to-peer network, just as people also send digital information to each other via torrents. 'makes' or generates the Bitcoin currency, also referred to as BTC, itself and that the transactions, all transactions, are stored in the entire network. So you can receive and send coins, but if it is no longer with you, it is with someone else and each transaction can only exist once in the network. This simple principle exists safely without banks or a central supervisor.
All nonsense of course, there are already several online 'credits' that represented a real value in dollars or euros? The Facebook credits, the Microsoft Points and the Linden Dollars: all expressible in money or convertible to cash. And that is precisely the problem. Real money, in coins or notes, only has value because you can give it away and then no longer have it. Digital money, which consists only of a binary number series, is relatively easy to counterfeit and can therefore be spent 2 or even 3 times, also known as 'double spending'. Counterfeiting is apparently easy and therefore a reliable intermediary is always needed, a kind of bank, a kind of PayPal. Bitcoin has solved this problem.
Peer-to-peer
Satoshi Nakamoto, about whom no data is known and whose existence is shrouded norway phone number list in mystery, is the inventor of the system and the writer of the software. It is a simple principle based on a peer-to-peer network, just as people also send digital information to each other via torrents. 'makes' or generates the Bitcoin currency, also referred to as BTC, itself and that the transactions, all transactions, are stored in the entire network. So you can receive and send coins, but if it is no longer with you, it is with someone else and each transaction can only exist once in the network. This simple principle exists safely without banks or a central supervisor.