Oyalo Blog

r

What Small Business Owners Should Know About Bitcoiny

Posted : Monday, June 06, 2015

What is Bitcoin?

Bitcoin is a peer-to-peer payment system and digital currency introduced as open source software in 2009 by Satoshi Nakamoto. Peer-to-peer means that no central authority issues new money or intended transactions. These tasks are managed collectively by the network. It is a cryptocurrency, so-called because it uses cryptography to control the creation and transfer of money. Conventionally, the capitalized word "Bitcoin" refers to the technology and network, whereas lowercase "bitcoin" refers to the currency itself.

How Bitcoin Works?

Bitcoin uses public-key cryptography, peer-to-peer and proof-of-work to process and verify transactions. Bitcoin are sent from one address to another, and each user can have many addresses. Each transaction is issued and included in blockchain network so that those Bitcoin can not be spent twice. After an hour or two each transaction becomes part of blockchain site, expanding it. Using these techniques, Bitcoin is a network of fast and highly reliable payment that can be used by anyone!

Why?

Bitcoin are easily sent over the Internet without having to trust a third party.

About Transactions:

- By design irreversible.

-They are fast. Funds received are available to be bald in a few minutes.

-It costs very little, especially compared with other payment networks.

Number of Bitcoin is regularly by software and the understanding of the users of the system and can not be manipulated by any government, bank, organization or individual.

Approximately 11 million Bitcoins are currently in circulation. In all, only 21 million will be generated through the year 2140. A single Bitcoin is worth approximately $117 U.S. dollars, according to Tokyo-based Mt. Gox K.K., the leading Bitcoin trading exchange. Values can fluctuate dramatically from day to day.

Bitcoin transaction are secured using what's called public key cryptography encryption, a two-part encryption process that involves a combination of public and private data. Each transaction is publicly verified by the peer-to-peer community network of Bitcoin users so they are generally considered safe.

Are Bitcoin transactions safe?

Bitcoin transaction are secured using what's called public key cryptography encryption, a two-part encryption process that involves a combination of public and private data. Each transaction is publicly verified by the peer-to-peer community network of Bitcoin users so they are generally considered safe.

Why would I want to accept them as payment?

Bitcoin can be attractive to business owners mainly because there are zero bank or credit card transaction fees to accept it, which can lead to higher profit margins, more competitive pricing and the ability to operate globally at lower cost. And Bitcoin transactions are completed instantaneously and anonymously, without having to go through a third-party bank, credit card company or PayPal.