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It's being called a better-than-gold equivalent store of value and a medium of exchange to rival Visa, Mastercard and Paypal. Its unit of account and predetermined qualities of a finite supply (21 Million total bitcoin in circulation to prevent inflation) make bitcoin a trustless, permissionless and (will be) frictionless new world currency.
It is the programmable money paradigm that requires no third party intermediaries or centralized governance for all consumers to agree and accept terms of using it jointly. .
Bitcoin is a technology its digital money backed by blockchain DLT a robust international network of payments and transactional/mercantile exchanges that are completely decentralized and relies on community consensus voting mechanism for its longest/honest chain. It doesnt depend on banks or governments to function and its creator Satoshi Nakamoto is a set of ghosts.
Bitcoin breathed new life into trying times amidst real estate housing bubble and fractional lending credit debacle and came into existence in October 2008 following the publication of a whitepaper titled, Bitcoin: A Peer To Peer Electronic Money System (created by the writer under the name of Satoshi Nakamoto).
Satoshi combined the knowledge of previous digital currency developments (see the Nakamoto Institute) for example HashCash and B Money and finally got all of the pieces to the puzzle to fit. It was the first to succeed where these others neglected to engineer a practical, autonomous decentralized peer to peer reviewed cryptocurrency which requires no central authority for money emission, validation of transactions or settlements. .
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The main innovation in Satoshis Bitcoin invention is that the development of a distributed computational hashing system known as the proof-of-work algorithm. It conducts international transaction validations every 10 minutes, allowing the decentralized network technology to come to consensus agreement regarding the condition of each transaction and whether the funds are legitimate and should be confirmed for being locked into the next block generated. .
The invention of Bitcoin represents the pinnacle of years of research in distributed systems and cryptography, its development combines 4 Important innovations Which Make the existence of Bitcoin potential:
There's much more to learn about the inner workings of the blockchain and how it all works, but right now we will do our very best to build bite-sized bits of digestible digital currency content just like the way to purchase it, trade it, invest it, save it, send it, spend it, receive it and even earn it. .
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Building the exchange software in-house: Gather a committed group of developers (friends, freelancers) to build (and maintain) your exchange program. Make sure they understand how an exchange operates in general, how cryptocurrency and blockchain technology works, and that they implement the above-mentioned components.
From a programming language point of view, the selection of the proper language may also change depending on which cryptocurrency you want to implement to your exchange (check out this article ). Furthermore, make sure that your software can be used with various payment processing systems or banks to protect payment transactions within your exchange. .
Most importantly (this is a no-brainer, however a few people seem to have unrealistic expectations), you need to estimate the costs and time associated with developing, maintaining, and constantly upgrading the software in-house. Due to the inherent complicated nature, developing an exchange program from scratch will be quite costly and may take up 1-2 years (depending on your own programmers experiences) until it works properly.
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Bear in mind though, these numbers are only a rough estimation based on our experience since so many different things need to be considered. .
Using free/open source scripts: If you test out GitHub or other forums, then you will discover quite a few open-source bitcoin exchange programs. The big benefit obviously is the source code is absolutely free. Nevertheless, there are also a couple risks That Have to Be considered:
You still need someone with technical knowledge to understand and implement the lines of code within the open-source script. Becoming acquainted with the way the script works, will take some time and modifications to enable customization, will also require additional time and money.
There's no guarantee that the script is protected and reliable. It might be buggy, susceptible to hack efforts or in the worst case, includes malicious lines of code, which slowly but unnoticeably extract your funds or bitcoins.
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The amount of development service on an open source system is rather sparse. Most of the time, your team of programmers will probably be left on their own to determine how to fix bugs or enhance performance. Worst case, when the job is abandoned, you will be left with no support or at all. image source .