$ETH Bitcoin (BTC) is the first decentralized cryptocurrency, introduced in a white paper in 2008 by the pseudonymous person Satoshi Nakamoto, with its network launched in 2009. It operates on a peer-to-peer network, utilizing a public and distributed ledger called the blockchain. Transactions are secured and validated cryptographically through a process called mining, which also introduces new bitcoins into circulation at a controlled rate. Bitcoin's limited supply of 21 million coins and its decentralized nature contribute to its perception as digital gold and a store of value, although its price remains volatile.
The history of Bitcoin began with the genesis block mined in January 2009 by Satoshi Nakamoto. Early adoption was slow, and the first real-world transaction was the purchase of two pizzas for 10,000 BTC in 2010. Over the years, Bitcoin's value has experienced significant volatility and growth, attracting investors from individuals to institutions. It has also spurred the creation of thousands of other cryptocurrencies (altcoins) and the broader blockchain industry. Milestones include its adoption as legal tender in El Salvador in 2021 and increasing interest from traditional financial institutions.
Bitcoin technology relies on blockchain, a distributed and immutable ledger that records all transactions across a network of computers. Encryption secures these transactions, ensuring that only the owner of the private key can authorize spending. The mining process uses a proof-of-work consensus mechanism to validate transactions and add new blocks to the chain. This process involves solving complex mathematical puzzles, requiring significant energy consumption. Bitcoin's open-source nature allows for continuous development and innovation within its ecosystem.#
