If you want to know what Bitcoin is, how you can get it and how it can help you, without getting bogged down in technical details, then this guide is for you. It will explain how the system works, how you can use it for your profit, and what to avoid. It will also direct you to resources that will help you store and use your first coin.
In 2008, an entity or person who called himself Satoshi Nakamoto presented a research paper that explains a description and a practical method for trading an electronic currency, which operates on the “peer-to-peer” principle, which means direct interaction between One person and another without the presence of a third party, such as banks, exchange offices and currency exchange, and called bitcoin.
At the beginning of January 2009, the first batch was launched, and it was called “genesis” or “Genesis”, to be the nucleus at the beginning of the first mining of the coin, and later in the same month the first Bitcoin transaction took place between Satoshi himself and Hal Finney, and he was a blogger And active data encryption.
The currency began to spread and gain confidence at a relatively limited level, and the value of the currency at the beginning of its launch was “one dollar = 1,309 bitcoin”, and this was calculated by creating an equation that includes the cost of operating the computer.
These are the most famous electronic currencies and how to mine them
How do bitcoins work?
This is a question that often causes confusion. Here is a quick explanation!
Basic steps for a beginner
If you are a newbie in the field, you can start in the Bitcoin field without having to understand or absorb the technical details. Because once you install a bitcoin wallet on your computer or phone, the wallet will generate the first bitcoin address and then be able to generate other addresses whenever you need one. And you can reveal your addresses to your friends so they can pay you or vice versa. In fact, this method is very similar to how email works, except that bitcoin addresses should only be used once.
Stocks – and the Blockchain
The block chain is the general ledger shared and approved by the entire Bitcoin network. All confirmed transactions are collected and recorded in the block chain, in this way the different Bitcoin wallets can calculate their balances.
New transactions can be confirmed by verifying the bitcoins spent by the same owner.
The integrity and chronological order of the block chain is achieved by encryption.
Transactions and private keys
A transaction or transaction is the transfer of a certain value between bitcoin wallets that are included in the block chain. Bitcoin wallets keep a secret piece of data called a seed or private key, which is used to sign transactions and provide proof of a mathematical equation that only comes from the wallet owner. Signatures also prevent any change in the transaction by anyone once it is issued and all transactions are broadcast between users and usually the process of confirmation by network users begins in the next ten minutes through a process called mining.
Mining – Processing
Mining is a consensus system used to confirm pending transactions by including and confirming them in the block chain, which enforces the chronological order in the block chain to maintain network neutrality, and allows different computers to search and agree on the state of the system, and to confirm that transactions must exist and are included in the block chain that In line with the rules of the very complex and strict encryption process, which will be confirmed by network users. These rules prevent users from making modifications to previous blocks because doing so may invalidate all subsequent blocks. Mining also creates a competitive lottery process that prevents anyone from adding new blocks in a row in a block chain and in this way no one can control what is included in the block chain or replace parts of the block chain to retrieve their spending.
Down into the rabbit hole
This is a very short and succinct summary of the system. If you’d like the details, you can read the original research paper describing the design of the system, read the developer’s documentation, and explore the Bitcoin wiki.
Mining by PC
“Bitcoin” mining is a complex arithmetic process, the aim of which is to verify the exchanges between different currency wallets, and this process is measured by the “hash” strength. It has high specifications from a powerful data processor, a high-capacity screen card, and a fast connection to the Internet. There are those who carry out this process within a group of people, and it is called “pool mining.” Each documentation of trading between wallets that earns bitcoin changes with the change of time.
Because of the difficulty of obtaining powerful personal hardware, and enough time to perform the mining process, some companies have created the idea of cloud mining; Where you invest your own money in these companies, so that the companies buy powerful mining equipment, and in return you take a part of the profit that these companies earn, and the most important of these companies are “genesis-mining” and “Hashnest”, but beware in your dealings with companies The source is unknown, because there are many people who take advantage of your desire to profit and deceive you
Important programs and sites to profit from electronic currencies
Every day, groups and institutions are created that seek to profit from electronic currencies
And you will find many of them, mostly chat programs and social media platforms, and for this we have brought you the best Arab groups that exist to help you in this kind of work
- The Arab Bitcoin platform, which is a platform specialized in everything that revolves around the world of Bitcoin, its latest prices, and what are the developments in mining in it.
- The Telegram program is also used to profit by sending “telecoin” to anyone you want on the Telegram program.
- The “aitnews” platform, which is specialized in the field of electronic currencies, but it contains a community full of many experts and dealers in the field of electronic currencies.
There are many electronic currencies and differ in terms of everything, but they are subject to the same basic principles, and all of them have a high profitability feature. We may address them in other articles that increase your awareness and knowledge in the field of electronic currencies.