Description
bitcoin
BITCOIN: An Disruptive currency in
Digital Economy and its challenges
in Harnessing Entrepreneurial
Gains
INT!OD"CTION
Bit coin is so#t$are %ased online payment system descri%ed %y &atoshi Na'amoto in
())* and introduced as open source so#t$are in ())+Although its status as a
currency is disputed media reports o#ten re#er to Bit coin as cryptographic, digital
and e-perimental currency It is re#erred to as .peer/to/peer, electronic payment
system0 It is in virtual #orm and can %e used to ma'e payments online as $ell as in
digital mode ,a decentrali1ed virtual currency $ithout a central repository or single
administrator Bit coins are created as a re$ard #or payment processing $or' in
$hich users o2er their computing po$er to veri#y and record payment into the
pu%lic ledgerBitcoin as a #orm o# payment #or products and service has seen
gro$thBitcoins can %e stolen and charge%ac'3s are impossi%le It is the largest
crypto currency %y mar'et capitali1ation 4ollo$ed %y 5ite coin and !ipple it is a
currency that lives in the $orld o# computer code and can %e sent any$here in the
$orld $ithout rac'ing up %an' or e-change #ees ,and than stored on a cell phone or
hard drive until used again Because the currency resides in code, it can also %e lost
$hen a hard drive crashes ,or stolen i# someone else accesses the 'eys to the code
The currency has attracted the attention o# "& &enate,the department o# Homeland
security, the 4ederal !eserve, The internal !evenue service etc The paper proposed
.electronic cash .that $ould allo$ online payments to %e sent directly #rom one
party to another $ithout going through a 6nancial institution .$ith transactions time
7stamped and vie$a%le to allBitcoin production is designed to move at a cali%rated
pace to %oost value and scarcity and remain in8ation proo#
BA&IC& O4 BITCOIN
Bit coin is a snippet o# codes %ased on algorithm They can %e divided %y up to eight
decimal places ,$ith the smallest unit called as0 satoshis0%itcoin net$or' shares a
pu%lic ledger called the .%loc' chain0 Appro-imately si- times per hour, a group o#
accepted transactions, a %loc' is added to a %loc' chain, $hich is 9uic'ly pu%lished
to all net$or' nodes The authenticity o# each transaction is protected %y digital
signatures corresponding to sending addresses Anyone can process transactions
using the computing po$er o# speciali1ed hard$are This process is called
.mining0and those $ho are re$arded $ith ne$ly created %itcoins and transaction
#eesthey can %e located any$here in the $orldAs o# ():; ,payment processing is
re$arded $ith $ith (< ne$ly created %itcoins
doc_880591945.docx
bitcoin
BITCOIN: An Disruptive currency in
Digital Economy and its challenges
in Harnessing Entrepreneurial
Gains
INT!OD"CTION
Bit coin is so#t$are %ased online payment system descri%ed %y &atoshi Na'amoto in
())* and introduced as open source so#t$are in ())+Although its status as a
currency is disputed media reports o#ten re#er to Bit coin as cryptographic, digital
and e-perimental currency It is re#erred to as .peer/to/peer, electronic payment
system0 It is in virtual #orm and can %e used to ma'e payments online as $ell as in
digital mode ,a decentrali1ed virtual currency $ithout a central repository or single
administrator Bit coins are created as a re$ard #or payment processing $or' in
$hich users o2er their computing po$er to veri#y and record payment into the
pu%lic ledgerBitcoin as a #orm o# payment #or products and service has seen
gro$thBitcoins can %e stolen and charge%ac'3s are impossi%le It is the largest
crypto currency %y mar'et capitali1ation 4ollo$ed %y 5ite coin and !ipple it is a
currency that lives in the $orld o# computer code and can %e sent any$here in the
$orld $ithout rac'ing up %an' or e-change #ees ,and than stored on a cell phone or
hard drive until used again Because the currency resides in code, it can also %e lost
$hen a hard drive crashes ,or stolen i# someone else accesses the 'eys to the code
The currency has attracted the attention o# "& &enate,the department o# Homeland
security, the 4ederal !eserve, The internal !evenue service etc The paper proposed
.electronic cash .that $ould allo$ online payments to %e sent directly #rom one
party to another $ithout going through a 6nancial institution .$ith transactions time
7stamped and vie$a%le to allBitcoin production is designed to move at a cali%rated
pace to %oost value and scarcity and remain in8ation proo#
BA&IC& O4 BITCOIN
Bit coin is a snippet o# codes %ased on algorithm They can %e divided %y up to eight
decimal places ,$ith the smallest unit called as0 satoshis0%itcoin net$or' shares a
pu%lic ledger called the .%loc' chain0 Appro-imately si- times per hour, a group o#
accepted transactions, a %loc' is added to a %loc' chain, $hich is 9uic'ly pu%lished
to all net$or' nodes The authenticity o# each transaction is protected %y digital
signatures corresponding to sending addresses Anyone can process transactions
using the computing po$er o# speciali1ed hard$are This process is called
.mining0and those $ho are re$arded $ith ne$ly created %itcoins and transaction
#eesthey can %e located any$here in the $orldAs o# ():; ,payment processing is
re$arded $ith $ith (< ne$ly created %itcoins
doc_880591945.docx