Bitcoin (sign: BitcoinSign.svg; code: BTC or XBT[1]) is a peer-to-peer digital currency that functions without the intermediation of a central authority.[2] The concept was introduced in a 2008 paper by a pseudonymous developer known as “Satoshi Nakamoto”.[3]
Bitcoin has been called a cryptocurrency because it is decentralized and uses cryptography to control transactions and prevent double-spending, a problem for digital currencies.[2] Once validated, every individual transaction is permanently recorded in a public ledger known as the blockchain.[2] Payment processing is done by a network of private computers often specially tailored to this task.[4] The operators of these computers, known as “miners”, are rewarded with transaction fees and newly minted Bitcoins. However, new bitcoins are created at an ever-decreasing rate.[2]
