Is Bitcoin Save???

Is Bitcoin safe or not? 

Bitcoin is the virtual and digital currency that is famous in all over the world. The inventor is still mysterious, but a person named Satoshi is said to be the inventor who introduces it in 2008 and the software gain the public approach in 2009. It gains a good attention by the individuals and become very active to prove is the increased rate of the currency. It has an attribute that it can be used in the places who accept the Bitcoin currencies for shopping.  It is such currency that uses the cryptography to have a good control over the creation, administration and in particular for the security purpose.

A person must have some understanding of the basic concepts of Bitcoin to get the answer to the most asked question that states” is it safe to use the Bitcoin”? Bitcoin is a currency that is peer to peer, and there are no central authority issues between these peer to peer systems. The transactions take place in the network, and the network is responsible for all the task managements.  Public key cryptography is used in the peer to peer networking to prove the work. Through this proof, the work is verified.  The user has many addresses, and each address can be used only once. The coins are sent from one address to another. The transactions are in the form of the broadcast to the network.

In the complete process, a blockhead is included. On each transaction, a block is added at the end of the chain and do not interrupt any block that is added previously. The block addition is the proof having the data about that the transaction has taken place. In this way, a used is not used twice.  With the passage of an hour or two, the transaction locked and the chain proceeded for the welcome the next block to extend the chain. The Bitcoins can be easily sent with the help of the internet, and it does not need any third party involvement. The transactions are speedy and have irreversible deign.

The funds those are received can be used to spend in a short time even within minutes. As compared to the other payments network the cost is little. The supply of Bitcoins takes place with the help of software. The agreement is with the users, and no government or bank can manipulate it. The money is distributed evenly to the users and especially to the miner who helps in making the network stable and secure. The block chain is the ledger that keeps the record of all the transactions of the Bitcoins. The network has nodes that run the software of Bitcoin. The ledger is a distributed database and has an independent verification option. Each node has its copy of data that is stored in the blockhead.

The transactions are the scripting languages, and a valid transaction has one or two inputs. The transaction has the digital signature of the owner, and each new input is the unspent output of the previous one. There is an option to pay a transaction fee.  There are units of Bitcoin as well like BTC XBT etc.  It is mining that gives the guarantee of security. Mining is a service that keeps the record. The miners help in keeping the ledger or blockhead complete, unalterable and consistent. The verification takes place repeatedly, and the new transactions broadcasts are collected in a block that can be said to be a group of the transaction.

The block contained cryptography hash and used the hashing algorithms. That helps it to make a link with the previous block, and in that way, a block chain is made and have a name as well.  The chain is not interrupted in any way. That is what the security system is. The chain is made in a way that new block is added to end and it increased the chain, and it does not allow replacing itself to make a place between the already existing block. And the addition of block is not a simple task. It is added after the verification the take place by the network, and after that proof of work, the block is added. To keep the earned coin, there is a Bitcoin wallet that keeps the record of the earned balance.

There is a specific address, through which the owner can spend his money, and the payment is signed digitally, and it used a private key. The Bitcoins cannot be spending with the signed and key. The public key is used to verify these two. In the case of losing the private key, the Bitcoin becomes unusable as the network cannot recognize the other evidence. The funds in the Bitcoins are not the entities of the real world. These are the Bitcoin addresses. The addresses are not identified explicitly. These are the blockchains those are public. In the case of trading the Bitcoin, the law may demand the personal information. 

The fact cannot be denied that the dark web has caused harm to the image of Bitcoins. They used it for the black money. So far as the legal status is concerned, it is a legal activity to mine. Different countries have different rules. Some had not allowed the mining. Some had allowed it with limitations by imposing standards and regulations. Some have allowed a fee handed use. If a person is a worry about the keys, then he must know that the public key is just like an email address.

A person can have your Email address, but he cannot approach your inbox. The same way a person can approach the public key having knowledge about the address, but he cannot approach the privet key. No one can approach the wallet as it is not a physical currency it is digital. Hence it is very safe and secure to use. The discussion proved that the complete process is very much secure those have not interrupted by any third party. All the functions are set in itself. The verification etc. is safe and secure. It depends on the user that how he use or abuse the Bitcoin facilities.