Crypto Consulting Group

Copy of Bitcoin Portfolio Profile


Bitcoin (BTC)

General Overview

Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator. The network is peer-to-peer and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes through the use of cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009.

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TECHNICAL ANALYSIS

 

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General Overview

Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator. The network is peer-to-peer and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes through the use of cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009.

Technology

Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services.

The blockchain is a public ledger that records bitcoin transactions. A novel solution accomplishes this without any trusted central authority: the maintenance of the blockchain is performed by a network of communicating nodes running bitcoin software.

Transactions of the form payer X sends Y bitcoins to payee Z are broadcast to this network using readily available software applications. Network nodes can validate transactions, add them to their copy of the ledger, and then broadcast these ledger additions to other nodes. The blockchain is a distributed database – to achieve independent verification of the chain of ownership of any and every bitcoin amount, each network node stores its own copy of the blockchain. Approximately six times per hour, a new group of accepted transactions, a block, is created, added to the blockchain, and quickly published to all nodes. This allows bitcoin software to determine when a particular bitcoin amount has been spent, which is necessary in order to prevent double-spending in an environment without central oversight.

In the blockchain, bitcoins are registered to bitcoin addresses. Creating a bitcoin address is nothing more than picking a random valid private key and computing the corresponding bitcoin address. This computation can be done in a split second. But the reverse (computing the private key of a given bitcoin address) is mathematically unfeasible and so users can tell others and make public a bitcoin address without compromising its corresponding private key.

Mining is a record-keeping service done through the use of computer processing power. Miners keep the blockchain consistent, complete, and unalterable by repeatedly grouping newly broadcast transactions into a block, which is then broadcast to the network and verified by recipient nodes. Each block contains a SHA-256 cryptographic hash of the previous block, thus linking it to the previous block and giving the blockchain its name. The successful miner finding the new block is rewarded with newly created bitcoins and transaction fees.

Leadership-

The original creator of the bitcoin client has described their approach to the software's authorship as it being written first to prove to themselves that the concept of purely peer-to-peer electronic cash was valid and that a paper with solutions could be written. While the majority of peers on the network may use Bitcoin Core, the developers' influence on bitcoin is limited by the choice of which implementation people voluntarily decide to use. 

The code was originally stored at Sourceforge before being available on GitHub. Because there is no formal structure, development is based around Bitcoin Improvement Proposals or BIPs, which are similar to Request for Comments. Public mailing lists are used to vet initial expressions of ideas. If enough support is displayed a BIP document is written. This is the standard for sharing ideas and gaining community feedback on improving bitcoin and was initiated by Amir Taaki in 2011.

Roadmap-

The Lightning Network is a "second layer" payment protocol that operates on top of a blockchain (most commonly Bitcoin). It enables instant transactions between participating nodes and has been touted as a solution to the bitcoin scalability problem. It features a peer-to-peer system for making micropayments of digital cryptocurrency through a network of bidirectional payment channels without delegating custody of funds or trust to third parties.

In January 2018 Blockstream launched a payment processing system for web retailers called "Lightning Charge," and noted that lightning was live on main net with 60 nodes operating as of January 18, 2018, and should be considered "in testing."

As of March 19th there are over 1500 nodes in effect.

Exchanges- Coinbase, Bitfinex, Binance, Kraken, Poloniex, Gemini
Wallets- Ledger nano s, Trezor, Exodus