Bitcoin, introduced in 2009, is the latest innovative online payment system and a new kind of currency. This mode of payment common with the younger generation works without any bank involved that guides the use of this payment. In simple terms, this is an open public means of payment that is not controlled by anyone or any institution. Practically everyone can make their deposits, withdrawals and payments using them. Its administration is decentralized.
The online payment method that was invented by Satoshi is an easy person to person means of payment that can be sent from a PC, tab or phone at any time of the day and night. The method is also secure in that the systems used are highly encrypted; therefore, they cannot be stolen or lost in the process. The system is similar to that used in the military or government institutions.
Once you have made your transaction, you will realize that there is a minimal fee paid. This makes it very convenient and cheap compared to other modes of payment. If the process is a bit slow, you can pay a minimal fee to speed it up. Therefore, if you are making large scale transactions, it becomes very convenient.
The industry is manned by a block chain which acts as sort of a ledger recording all the transactions. This is accomplished without any central system to control it. The chain is maintained by a network of communicating nodes that run the coins software. These network nodes validate the transactions so as to verify the owner of coins as it moves from one owner to another.
For you to transact with them, you must have one or more units. For the transaction to complete, the units to be used must be unspent after they were last withdrawn. Moreover, every unit that you want to spend must be digitally signed in. If you have many outputs, you can make several transactions with each of the units. You can have more units than you will spend; the balance is returned as change.
The transactions are totally private, as the owners of the coins are not disclosed but other transaction details are relayed. There is no way the holder of the coins can be disclosed by name. However, the transaction can be traced back to you if need be.