At present, electronic money has gained special popularity, despite the fact that they appeared relatively recently. This is facilitated by factors such as the convenience of paying for goods in online stores, the high speed of transactions, the use of modern technology to ensure the security of transactions. One of the most promising types of electronic money is the crypto currency.
The most widespread among the crypto currency is Bitcoin.
What are the advantages of Bitcoin? First, decentralization. This means that there is no single management center in the network that stores information about the balance in the wallet and the transaction list. This information is stored on computers of ordinary owners of bitcoins. After installation, the purse program downloads from other users of the system a complete database of all transactions that have ever been committed, that is, the information can not be lost or distorted.
Secondly, anonymity. Anonymity of the transaction is achieved due to the fact that in the purses of bitcoins there are no username and passwords that are familiar to us, nor is it necessary to specify any kind of personal data of the sender and receiver of funds. The wallet consists of a public identifier, conditionally it can be called login, balance and private key. To complete a transaction, you only need to know the public identifier of the recipient. The process of creating a purse is the generation of a random private key, for which a cryptographic function is called, which is called hashing. When a user loses access to his wallet, the funds contained in it fall out of circulation. The lost bitcoins still remain in the global history, as well as all the others, however, they will forever remain without movement, because there is no way to pick up a private key. According to the law of supply and demand, the fewer bitcoins available, the more valued those that remain in circulation. Third, the lack of a single issuing center.