We heard often about Bitcoin, specially the rate of increase by $200 every day. Impressive and unexpected offers are always be in dangerous and fraud. Basically Bitcoin is a digital asset used for medium of exchange for products and services without any transaction fees. Satoshi Nakamoto based from Japan had developed the idea of Bitcoin from complex algorithm with the communication of Cypherpunk (A group of technical communication advisors).
History
Before development of Bitcoin there were many digital currency in the market such hashcash, Wei Dai’s b-money, bit gold, proof of work (RPOW) and so on. They all developed by different mastermind developers and used for different kind of purpose. Bit Gold proposed a collectible market based mechanism for inflation control
In the bit gold proposal which proposed a collectible market based mechanism for inflation control, Nick Szabo also investigated some additional enabling aspects including a Byzantine fault-tolerant asset registry to store and transfers the chained proof-of-work solutions.
Satoshi Nakamoto is a virtual name who developed these Digital assets; however his face is still unknown. There has been much assumption as to the identity of Satoshi Nakamoto with suspects including Hal Finney, Wei Dai, and accompanying denials. The possibility that Satoshi Nakamoto was a computer collective in the European financial sector has also been discussed.
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Development
Associated domain for transaction bitcoin.org had been registered on 18 August 2008. Satoshi Nakamoto start marketing from 31st October 2008 with title “Bitcoin: A Peer-to-Peer Electronic Cash System” and posted to a cryptography mailing list. This paper completed ideas of using a peer-to-peer system to create what was titled as “a system for electronic transactions without relying on trust“.
Later in January 2009, the bitcoin system came into reality with the release of the first open source bitcoin client and the issuance of the first bitcoins, with Satoshi Nakamoto withdrawal the first block of bitcoins ever (known as the genesis block), which had a payment of 50 bitcoins. Embedded in the coinbase of this block was the text: The Times 03/Jan/2009 Chancellor on brink of second bailout for banks
Hal Finney is the programmer who was adopters, first supporters and contributor to bitcoin and receiver of the first bitcoin transaction. He downloaded the bitcoin software when it was released, and got 10 bitcoins from Nakamoto in the world’s first bitcoin transaction. The queue of supporter increased with early supporter named as Wei Dai, creator of bitcoin precursor b-money, and Nick Szabo, creator of bitcoin predecessor bit gold.
Nakamoto is now disappear from bitcoin but he handover the development to Gavin Andresen, who then became the bitcoin lead developer at the Bitcoin Foundation, the ‘anarchic’ bitcoin community’s closest thing to an authorized public face.
The rate of the first bitcoin transactions were negotiated by persons on the bitcoin discussion forum with one prominent transaction of 10,000 BTC used to indirectly purchase two pizzas delivered by Papa John’s.
Major vulnerability of Bitcoin was found on 6th October 2010. Transactions weren’t properly established before they were added in the transaction log or blockchain, which let users bypass bitcoin’s financial restrictions and create an indefinite number of bitcoins.
On 15 August, the vulnerability was exposed; over 184 billion bitcoins were generated in a transaction, and sent to two addresses on the network. Within hours, the transaction was spotted and removed from the transaction log after the bug was fixed and the network forked to an updated version of the bitcoin regulation. This was the only major security flaw found and exploited in bitcoin’s history.
Electronic company Frontier Foundation had started to accept payment in Bitcoin format from January 2011 and after that big brands like Gavin Andresen, wordpress, Internet Archive, OkCupid, frontier, BitInstant, Vitalik Buterin, Baidu, BTC China, Golden Gate Hotel & Casino, TigerDirect, Overstock, Mt Gox, St. Petersburg Bowl, Barclays, Bidorbuy and many more have started accept payment in Bitcoin Format. Press release and other marketing media such as Bitcoin Magazine, CNBC have played vital roll in popularity of Bitcoin assets.
Future
Because it’s all way virtual and Digital assets, there is no any authority, regulation, rules over Bitcoin price control. In future nobody can be sure for value of Bitcoin. If we look at bitcoin history in Wikipedia we realize that 1 Bit Coin rate was almost 0 but today it’s more than $17,000.
