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Bitcoin – What should you know about it!

Mar 30, 2013 by     No Comments    Posted under: Knowledge Base

Bitcoin is the digital currency based on open source, peer to peer internet protocol and the concept of “Crypto Currency”

In our daily life we usually hear about Encryption / Decryption of data used for the purpose of security.
Now the same concept applies for the transfer of currency, that currency is known as BITCOIN and the concept is called “Crypto Currency”. It’s a digital currency implemented on the bases of open source, peer to peer internet protocol.

This concept was discovered in 1998 by Wei Dai on the cypherpunks mailing list, & came into implementation in 2009 by a Pseudonymous developer named Satoshi Nakamoto published in Cryptography Mailing List.
A single Bitcoin can divided into 100 million smaller units, called Satoshis. A Bitcoin can be transfer simply from a personal computer through the use of wallet file or a website, without any participation of financial institution. Bitcoins has no Central Bank. Once the transaction has submitted then it cannot be altered. The supply of Bitcoins is limited, divided, scheduled & divided. Bitcoin Mines or Block Chains verify the Bitcoin transaction & add them to transaction log. The total implemented time for transactions is about 10 to 60 minutes.

By the end of 2010 Sathoshi left the searches and moved to other projects. Now the value of Bitcoin going downward slowly, in July 2011 Bitcoins now again climbed up towards heights & in Sept 2012 Bitcoin Foundation came into existence.

Above Image originally published on Wired.com

BitCoin Hacking
As described in introduction Bitcoins are digital currency & based on the concept of encryption. For the encryption of Bitcoin a free key piece is used. Mt. Gox is the person who exchange largest amount of bitcoin in the world, In June 2011 first time his Bitcoin were hacked due to server unencrypted.

After sometime in March 2012, one day some server were not completely encrypted & the attacker access the unencrypted wallet Keys. Using these keys they were successful in transferring the coins to their account. this time the total hacked value of Bitcoins was 24,000BTC, which was US$ 2,50,000.00.
For this the Shtylman, the founder of Bitcoins takes the manual upgrade & put data into unencrypted partition of the disk.
The latest Bitcoins hacking was done on Feb.28,2013. This time the hacking is done in different way, they convincing its domain registrar of Bitinstant’s internet domains take the control of Site5 in their own hand, They were armed with the security questions – both my place of bith, My mother maiden name. But they only transfer the data in 3 installments of 333BTC, total value of US$ 12,480, due major check points & redundant data in the system.

BitCoin Credit Card
‘Credit Card were never designed for the internet’ Anthony Gallippi CEO of BitPay.

The major aim behind designing of Bitcoins was to save the transaction charges, because the transaction charges over the transfer of millions amount of bitcoin is Zero.
As we know it’s a decentralized currency, Govt had no control over it, its beneficial to save the currency from corruption.
In the first 25 days of the month of the March 2013, 3600 transactions had completed, & the value of transferring amount is approx US $2 millions.

Check this wonderful video below by Duncan Elms explaining above in a visual way

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