Bitcoin is a digital currency, a protocol, and a software that enables
- Instant peer to peer transactions
- Worldwide payments
- Low or zero processing fees
So what is Bitcoin? Bitcoin is arguably the worlds first successful crypto-currency. Bitcoin harnesses the power of a decentralized peer to peer (p2p) network to create a worldwide universal ledger of transactions. When someone on the network makes a transaction (sends money to a bitcoin address) it is broadcast throughout to everyone on the network, who then update their ledgers to indicate the change (address x now has this balance). Secured by the all-powerful SHA-256 hash function and protected by some economic genius and a proof-of-work verification system, Bitcoin has only been around a few years and yet it’s proved that in the technical world we live in we need a new kind of money.
You can go to bitcoin.org to learn more and get started with Bitcoin.