Bitcoin represents the birth of a transformational technology. There have been key moments in the history of humanity where the way we trade things between each other has drastically changed. You can track the evolution of money all the way back to the barter system, then came the introduction of gold coins, then promissory notes backed by gold, and finally what we have now; fiat currency which is backed by a nation, but not any physical commodity.
Bitcoin is the next step in the evolution of money. It’s a drastic improvement in our current medium of exchange. The way a Bitcoin transaction occurs is through a distributed network where every participant is required to verify a transaction before it’s processed. This makes it:
- Incredibly robust against counterfeit
- Decentralized, meaning there are no central entities you have to trust with your personal information
- Completely anonymous because it uses cryptographic techniques to hide personal information.
- Transparent, since all transactions are searchable on a blockchain explorer
- Incredibly fast. Sending money across the world only takes a few minutes on the Bitcoin blockchain ledger.
- Non-repudiable, so if someone has committed to paying you a certain amount on the blockchain, the transaction will be processed even if they decide to walk back on their promise.