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New terminology: Bitcoin

New terminology: Bitcoin

It is very common nowadays to have heard about the term Bitcoin, but what is it? Bitcoin is a digital currency or cryptocurrency working on a open source P2P network. These types of network consist in a computer network which functions on a series of nodes (or machines conforming the network) which behave exactly the same.

One of the most important features of these currencies is that they break with the model of tradicional currency and with the monetary system in general. Not only for being a decentralized currency but also because it does not have administrators or intermediaries such as bank or financial entities. 

This works over a blockchain that is a public database of chained transactions which are unmodified and unadministered. This does not mean that Bitcoins can be transferred freely among users but that , on the contrary, transference is based on the community consent. Users who validate Bitcoin are miners. Miners figure out the correct algorithm which join the blockchain transactions and when they find them, it enables them to win the coinbase and thus to win or mine Bitcoins.

Experts claim that the blockchain technology is characterized for the confidentiality and security of its transactions, and it can also be used in certain operations such as document certification, issue of securities, stocks record, crowdfunding,  el registro de acciones, tax collection or smart contracts.