What is Bitcoin?
First we need to get a few definitions out of the way:
- Cryptocurrency - A digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a digital ledger or computerized database using strong cryptography to secure transaction record entries, to control the creation of additional digital coin records, and to verify the transfer of coin ownership.
- Blockchain - A growing list of records, called blocks, that are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data, making it resistant to modification.
- Distributed Ledger - A consensus of replicated, shared, and synchronized digital data geographically spread across multiplees, countries, or institutions. There is no central administrator or centralized data storage.