The Rise Of Bitcoin. How bitcoin rose.In 2008, a paper was published on a cryptography mailing list by someone who used Satoshi Nakamoto as a pseudonym. In this paper, a fully peer-to-peer electronic cash system, which is known as Bitcoin, was introduced. After the Bitcoin white paper, a proof of concept software client of Bitcoin was released in 2009 by an online community of computer scientists who studied cryptography. Those scientists aimed to create an efficient and verifiable digital asset. When the Bitcoin network was launched in January 2009, majority of Bitcoin users were scientists who worked towards testing the software in order to verify Bitcoin’s working parts. Over time, the use of Bitcoin increased greatly and many users have adopted Bitcoin as an official payment currency.
There are three key innovations that have been introduced in Bitcoin. These innovations can be outlined as follows: Distributed ownership ledger that records all the available digital assets in Bitcoin in a form of transactions that are verified by all users of Bitcoin. Unlike previous attempts to develop digital assets, the cryptographic payment system that is proposed by Nakamoto does not rely on a third party trust to verify the currency supply and transactions. Instead, Bitcoin developers built a decentralized network of computers that work concurrently towards achieving a common goal which is validating transactions in the Bitcoin network. The decentralized and distributed network allows every user to verify the validity of transactions based on a cryptographic protocol and the transactions history in Bitcoin that is shared over the entire Bitcoin network. The distributed transaction history, known as blockchain, is considered as one of the important innovations in Bitcoin which is stored locally on the computer hard drive of every user running a full version of the Bitcoin software. The blockchain is maintained through the proof of-work “mining” process. This process is achieved through running a special mining variant of the Bitcoin software that requires a great amount of computing power in order to win the right of adding information to the blockchain. Users who cover the mining task are named as miners .
The second key innovation in Bitcoin is distributed currency supply by which a unit of value on the Bitcoin network, known as bitcoin is released in the system. A bitcoin is represented by eight decimal places, and the smallest unit of bitcoin, known as a satoshi, has a value of 1/100,000,000th of a bitcoin. Regarding the source code of Bitcoin, only 21 million bitcoins will be supplied as mining rewards for miners opposite to the process that adds information to the blockchain. To date, around 70 percent of all bitcoins have been supplied, and approximately 90 percent of all bitcoins will have been supplied by 2026. Due to the use of a cryptographic proof and the distributed blockchain, verifying the authenticity and ownership