Now, let’s get technical. Bitcoin—the concept was “coined” by a pseudo-anonymous individual, Satoshi Nakamoto, way back in 2008 after financial markets crashed. It is a form of cryptocurrency, which means that the currency is a digital set of numbers stored on the Internet. It is a decentralized network, which means there is no central authority like a bank or the Government, to keep track of people’s finances. Money is transferred directly from one person to another without any medium (like Visa) and, what’s more, it’s done in seconds.
coinbase login transactions are executed by computer software or a smartphone application. Just like our bank account offers us a unique account ID, Bitcoin offers the user two keys to their account: Public Key and Private Key. The Public Key (which is to be shared) enables a transaction to take place and the Private Key encrypts the transaction to ensure its security. The Private Key is the more significant player that you need to hold it close to your chest and not divulge it to anybody.
The mode of payment!
When we swipe this card to pay our bills, even though we get this card from the bank, the bank relies on these abovementioned organizations to process the payment. So even if it’s convenient to use the card instead of cash, we must realize that there are several parties involved in the transaction that could potentially have a negative impact on our money. So, Bitcoin comes along with the unexpressed motive of giving power back to the people as it were. But hey, we live in a democracy, right? So, it ought not to be such a big deal after all.
As for who verifies these transactions and keeps track of them, well, that’s where the potency and prowess of Bitcoin comes to the fore. We, the users verify all transactions that take place through a process known as Blockchain.