HOME

SECTIONS

OPINIONS

DECODED

OUR GROUP

JOIN US

TOP NEWS

Bitcoin : Decoded
November 29, 2013 - Decoded, Economics and Business, International, Miscellaneous - Tagged: Bitcoins
Systems and risks, Digital Currency, How Bitcoins work, What are Bitcoins, Working of Bitcoins - no comments
Recom m end

Share 17 people recommend this. Be the first of your friends.

Like

Tw eet

17

THE BOOK SHELF

Is the Proactive Judicial Activism

diluting the basic structure of the
Indian Parliamentary system? Join the
Debate

Search
Virtual currencies, or digital cash, are gaining popularity as a new way to purchase goods or services. They
are not regulated or issued by a central bank. The most popular virtual currency is Bitcoin, which gaining
popularity these days.
Simply Decoded
What is Bitcoin? It is a digital currency that is created and exchanged independently of any government or

Like

bank. The currency is generated through a computer program and can be converted into cash after being
deposited into virtual wallets.

6,914 people like Simply Decoded.

When Bitcoin was launched? In 2008, a programmer known as Satoshi Nakamoto a name believed to be
an alias posted a paper outlining Bitcoins design and later in 2009 released software that can be used to
exchange Bitcoins using the scheme. That software is now maintained by an open-source community
coordinated by developers.
How does Bitcoin work? It exists through an open-source software program and its supply is controlled by a
computer algorithm. Once you download and run the Bitcoin client software, it connects over the Internet to

Facebook social plugin

the decentralized network of all Bitcoin users and also generates a pair of unique, mathematically linked
keys, which youll need to exchange Bitcoins with any other client. One key is private and kept hidden on
your computer. The other is public and a version of it dubbed a Bitcoin address is given to other people so
they can send you Bitcoins.
How Bitcoins are generated? The process of generating Bitcoins is quite complicated and involves solving
complex algorithms and sharing the solution with the entire network. The mining is very computationally
intensive and requires powerful computers.

Join 1417 other subscribers via Email

Email Address
Subscribe

How to transfer Bitcoins: When you perform a transaction, your Bitcoin software performs a mathematical
operation to combine the other partys public key and your own private key with the amount of Bitcoins that
you want to transfer. The result of that operation is then sent out across the distributed Bitcoin network so

Other Useful Articles:

the transaction can be verified by Bitcoin software clients not involved in the transfer.

Revenue Deficit & Fiscal Deficit

How to trade Bitcoins: Exchanges like Mt. Gox provide a place for people to trade Bitcoins for other types of

Summary of 13th Finance Commission

currency. Payments to a merchant who accepts Bitcoins are made from the wallet application, either on your

Report

computer or smartphone, by entering the recipients address, the payment amount.

12th Five Year Plan and New Targets

Who controls the Bitcoin network: It is controlled by all

Bitcoin users around the world. While developers
improve the software, they cant force a change in the

Summary of approved 12th Five Year Plan

Income Through Launching of Satellite

Bitcoin protocol because the virtual currency can only

work correctly only if there is a consensus among all
users.

Current Account Deficit & India

Different Writs and their Importance

Bitcom transactions: At the end of August 2013, the

value of all Bitcoins in circulation exceeded $1.5 billion
with millions of dollars worth of Bitcoins exchanged

Indian Preamble and its Importance

Capitalism, Socialism & Communism :
Introduction

daily, according to Bitcom website.

Post By Simply Decoded (339 Posts)

C ONNECT

MGNREGA: An Introduction

Making sense out of chaos in this Complex World &

helping people in understanding things in a better way.

Categories

Website:
Like

17

Tw eet

Decoded
8

Economics and Business

Enviroment

Add a comment...
Also post on Facebook

Featured Articles
Posting as Amit Kumar (Change)

Comment

Govt. Schemes
Facebook social plugin

International
Latest
Life & Society

Related Posts:

Miscellaneous
Opinions
Politics & Administration
Science & technology
Simple Explanation
of Cloud Computing

GDP Deflator:
Decoded

Imported Inflation:
Decoded

Hedge Management:
Decoded

Sports & Entertainment

Strategic

Leave a Reply

Uncategorized

Enter your comment here...

Follow the Editor on Twitter

Shop on Flipkart and avail special

discount!!

Simply Decoded
Like 6,914

Simply Decoded
1 hr

Some relief for farmers !!

Source : TOI

Simply Decoded added

a new photo.

Archives

3 hrs

Select Month

Our Partner Website

Backup of our website is powered by

Simply Decoded
16 hrs

IronDome
defence system is in

Latest on SimplyDecoded

Politics and Administration

Economics and Business

International

Income Through Launching of

Income Through Launching of

Summary of Economic Survey

India, the First Nation to ratify

Satellite July 18, 2014

Satellite July 18, 2014

2013-14 July 9, 2014

Marrakesh Treaty July 15,

Status of Indigenous Research

India, the First Nation to ratify

Railway Budget 2014 -15 :

and Development July 18, 2014

Marrakesh Treaty July 15,

Summary July 8, 2014

India, the First Nation to ratify

2014

Special Drawing Rights

2014
Special Drawing Rights
(SDRs): How it Works ?? July
7, 2014

Marrakesh Treaty July 15,

Summary of Economic Survey

(SDRs): How it Works ?? July

2014

2013-14 July 9, 2014

7, 2014

Summary of Economic Survey

Railway Budget 2014 -15 :

Centre State financial

2013-14 July 9, 2014

Summary July 8, 2014

relation & Special Category

Israel & India : Through the

Status: Decoded June 24,

lens of history June 4, 2014

Railway Budget 2014 -15 :

Centre State financial

Summary July 8, 2014

relation & Special Category

2014

Status: Decoded June 24,

Recommendations of Tax

2014

Administration Reform
Commission June 17, 2014

2013 Sim ply Decoded : About Us : Citiz en Journalis m : Copyright Policy : Privacy Policy : Dis claim er : Contact Us

Project Mausam by Ministry

of Culture June 22, 2014

Philippines & US sign security

Pact May 18, 2014