Bitcoin: what is it? An eight-step guide to cryptocurrencies

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Bitcoin is a form of electronic money (this is just a visual representation).

While we’re all used to the idea of ​​digital currencies — spending and receiving money that isn’t physically in front of us — cryptocurrencies, like Bitcoin, remain a mystery. How can we use the money in the future? And can we even trust cryptocurrencies? In this quiz we ask Dr. William John Knottenbelt, director of Imperial College’s Center for Cryptocurrency Research and Engineering, to help us better understand this kind of mysterious currency.

Bitcoin is a form of electronic money. This means that he has no physical form. Instead, e-currency units are exchanged over a computer network that has some unique features: There is no central control point (there are no “banks”).

There is no central transaction storage point (a central database with an overview of all executed transactions).

Instead, it operates on a global network with thousands and thousands of nodes — a machine within a network such as a computer or other device — processing and storing transactions together.

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