Bitcoin Basics - dummies

Part of Bitcoin For Dummies Cheat Sheet

Bitcoin is an alternative type of payment system that is sometimes mentioned in the media. Is it “Internet” or “digital” money? Is it a way to conduct business outside the mainstream financial infrastructure? Is it a new way of life that could transform multiple aspects of society in the future? The answer is yes.

  • Origins: Bitcoin was created by developer Satoshi Nakamoto in 2008.

  • Purpose: Bitcoin provides a viable decentralized alternative to the current mainstream financial infrastructure.

  • Method: Bitcoin enables spending with full transparency through a publicly available ledger known as the blockchain.

  • Security: A bitcoin transaction involves both a public key, which is generally known to everyone, and a private key known only to the bitcoin user. No coins can be spent without knowing the private key.