“Bitcoin” well known as a cryptocurrency is more than just that, it’s more than that.

Bitcoin Is A System

Just like any system, the Bitcoin system is made up of various components that work together.

Let’s dive into the different parts of Bitcoin.

The Bitcoin system is essentially a network of computers that communicate with each other over the internet.

To enable this communication, each computer has Bitcoin software installed and is an open source which everyone can look at its code.

The original version of the software is now known as Bitcoin Core. Satoshi Nakamoto, the mysterious creator of Bitcoin, was the original maintainer of Bitcoin Core until he disappeared in late 2010.

Since Nakamoto's departure, a group of individuals known as "Core developers" have taken over and now maintain the software. So, what does this software do? It runs the Bitcoin protocol.

A protocol is a set of rules or procedures that govern how a system operates. In the case of Bitcoin, the protocol defines the rules for how the Bitcoin system functions. For instance, one rule specifies the maximum number of bitcoins that will ever be in circulation. Another rule determines what makes a transaction valid.

These rules, or protocol, can be described in writing, but for Bitcoin, they are expressed in computer code. This code is then compiled into software, which is used to operate the Bitcoin network.

Bitcoin is more than just a digital currency; it's an innovative system that has the potential to change the way we think about money and transactions.

As you learn more concepts, we will see it grow! Be prepared to be amazed! 😎 Let’s now learn more about the Bitcoin network.

Summary

Problems Bitcoin Solved

So, in a nutshell, the Bitcoin system is a network of computers that work together to create, verify, and record transactions using a transparent and secure digital ledger called the blockchain.

It's decentralized, meaning no single entity controls it, and it's powered by miners who solve complex puzzles to keep the network running.

With a Bitcoin wallet, you can store and use your Bitcoins, and you can buy or sell them on exchanges. Welcome to the exciting world of Bitcoin!