What is Bitcoin?03 Apr 2018
What is Bitcoin?
Bitcoin is open-source software that got released around 2009. It is believed to have been invented by Satoshi Nakamoto. The worldwide payment system is categorized as a cryptocurrency. It was the pioneer of the blockchain technology acting as the first decentralized digital currency. Its entire system works efficiently without any single administrator or a central bank.
Over the years, the technology has been advanced significantly with the introduction of Htmlcoin in 2014. The new coin is not just a type of cryptocurrency. It is a well-developed secure blockchain based majorly on Bitcoin Core that amalgamates Ethereum based smart contracts. The Htmlcoin implements an expandable design that has capabilities of incorporating more virtual machines than all the other blockchain platforms.
The blockchain network is peer-to-peer, and all the transactions take place without an intermediary thus saving users considerable amounts of time and money. Therefore, the Htmlcoin was designed to enhance bitcoin transactions that are verified by secure network nodes using cryptography technology. Moreover, the transactions get recorded in a transparent public distributed ledger that is referred to as the blockchain.
These digital coins are created as a payment or reward for a strategic mining process. Although it is yet to get accepted in the mainstream financial markets, bitcoin can be exchanged for many other traditional currencies as well as a form of payment for products and services offered. According to recent research by various institutions, there are almost 5.8 million unique users actively using a cryptocurrency wallet.
A majority of the active cryptocurrency wallet users use bitcoin. The word bitcoin was first introduced in a white paper describing a compound of two words on 31 October 2008. Bitcoin is also a unit of account for the bitcoin blockchain system. Also, the ticker symbols used to represent these digital currencies are XBT and BTC.
Since the inception of bitcoin, many other digital currencies have emerged, and the need to integrate them has elevated. The Htmlcoin platform is enabled through an Account Abstraction Layer that allows an account-based virtual machine to function efficiently to produce desired results on a Bitcoin UTXO-based blockchain.
All the bitcoin transactions are elaborated using a Forth-like scripting language that was in the past incompatible with other digital currencies until the invention of the Htmlcoin. Transactions feature one or multiple inputs and outputs. When sending the digital coins, users designate every address and the amount being spent or sent to desired addresses in the output.
The Htmlcoin blockchain takes into account the importance of Ethereum and Bitcoin in the crypto world. Thus, it is designed to enhance security ensuring that every input refers to a previous unspent output available in the blockchain to avert any cases of double spending. It is evident that the use of multiple coins in any cash transaction is the only scenario that results from the use of multiple inputs.
The blockchain is designed to make online transactions quick, secure, and easy to use. The users can send bitcoins and other digital coins to multiple recipients in a single transaction since most of the blockchain transactions can have multiple outputs. The Htmlcoin uses aspects of both Ethereum and Bitcoin making it easy to use and accessible to all the digital currencies.
The result of the HTML blockchain is an open source community that allows Bitcoin to ‘communicate’ with Ethereum. This technology utilizes decentralized mobile applications running on the UTXO model of blockchain infrastructure. However, it has unique modifications that focus majorly on the practical applications of the smart contracts. The Htmlcoin uses the UXTO model enhances consistency and security of the transactions since all tokens can be traced.
The Htmlcoin blockchain UXTO model incorporates the advantages of Ethereum and Bitcoin solving the problem of their incompatibility. The coin strives to offer a plethora of decentralized applications that can be successfully applied in multiple settings by both individuals and businesses.
Please note that Bitcoin transactions cannot reverse like the traditional currencies electronic transactions. This case arises since the blockchain is decentralized with no central ‘adjudicator’ who can initiate the reverse process. However, the Htmlcoin blockchain technology ensures that users verify the recipient of the funds before sending ensuring that no transactions are completed to the wrong addresses.
Whenever any transaction is authorized and recorded on the network, it becomes virtually impossible to modify the details when more than an hour has passed.
Unlike the traditional currencies that have an unlimited supply, bitcoin supply is tightly controlled by its underlying blockchain algorithm. A small number of these digital coins is released every hour and is strategically set to continue trickling at a diminishing rate until the set maximum is reached.
The maximum number of the bitcoin currency is set at 21 million. Therefore, with its enhancement using the Htmlcoin, bitcoin is quite attractive as an investment asset.