Bitcoin in simple words is the digital format of currency. The Bitcoins are stored and can be accessed from the digital wallet application. You are allowed to send Bitcoins to other people and receive Bitcoins from them via net connection. Cryptography mechanism is employed to maintain the security and integrity of this digital currency.
The payments using the Bitcoins are done by means of Bitcoin address. This address would determine the destination platform on which the payment should happen. The address consists of string of letters and numbers. You, as a user of Bitcoin can create and assign a new address as per the requirement. The address could be assigned online to the Bitcoin by using wallet service also. They are ought to begin with either number 1 or number 3.
Bitcoin greatly differs from online money in terms of offering flexibility to the users. It does not require internet connectivity in order to relate the digital currency to any concrete identity. This makes it difficult to identify actual owner of the Bitcoin. The users are never followed by Bitcoin rather the addresses of the online money are tracked judiciously. The bitcoin price is highly volatile.
Every Bitcoin address is associated with cryptographic data in two vital parts. They are public key and private key. The address of any bitcoin is generated asboth keys. Other users can send Bitcoins by using this public key. You, as a owner can send Bitcoins to others using private key. This is never revealed. While transferring Bitcoins you are supposed to manifest that you are owner of private key of that particular address without actually disclosing it.
Conclusion: The user base of Bitcoin system is increasing rapidly. Companies and individuals are embracing this system for its range of benefits. This is otherwise called as cryptocurrency and is successful in gaining the appreciation of consumers.