In today’s world of new evolving technologies it’s hard to keep up with all of the innovations. For those of you who have heard about Bitcoin, but have a vague understanding, here is a short breakdown of its features. Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network. Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part. Through many of its unique properties, Bitcoin allows exciting uses that could not be covered by any previous payment system. Bitcoin offers fast peer-to-peer transactions, worldwide payments and low processing fees.
How does Bitcoin work?
The basics for a new user
As a new user, you can get started with Bitcoin without understanding the technical details. Once you’ve installed a Bitcoin wallet on your computer or mobile phone, it will generate your first Bitcoin address and you can create more whenever you need one. You can disclose your addresses to your friends so that they can pay you or vice versa. In fact, this is pretty similar to how email works, except that Bitcoin addresses should be used only once.
Balances – block chain
The block chain is a shared public ledger on which the entire Bitcoin network relies. All confirmed transactions are included in the block chain. It allows Bitcoin wallets to calculate their spendable balance so that new transactions can be verified, thereby ensuring they’re actually owned by the spender. The integrity and the chronological order of the block chain are enforced with cryptography.
Transactions – private keys
A transaction is a transfer of value between Bitcoin wallets that gets included in the block chain. Bitcoin wallets keep a secret piece of data called a private key or seed, which is used to sign transactions, providing a mathematical proof that they have come from the owner of the wallet. The signature also prevents the transaction from being altered by anybody once it has been issued. All transactions are broadcast to the network and usually begin to be confirmed within 10-20 minutes, through a process called mining.
Processing – mining
Mining is a distributed consensus system that is used to confirm pending transactions by including them in the block chain. It enforces a chronological order in the block chain, protects the neutrality of the network, and allows different computers to agree on the state of the system. To be confirmed, transactions must be packed in a block that fits very strict cryptographic rules that will be verified by the network.
These rules prevent previous blocks from being modified because doing so would invalidate all the subsequent blocks. Mining also creates the equivalent of a competitive lottery that prevents any individual from easily adding new blocks consecutively to the block chain. In this way, no group or individuals can control what is included in the block chain or replace parts of the block chain to roll back their own spends.
Bitcoin in Real Estate
If you are planning on selling your property and considering accepting Bitcoin as a payment for the sale of your home and, most importantly, exposing your home to more Buyers – add an extra feature to your selling option – accept an offer on your home from anyone, anywhere, in any currency – including Bitcoin.
GPG Brokerage is a BITCOIN & DIGITAL CURRENCY friendly real estate brokerage that has partnered with digital currency trusts that will allow you to accept an offer on your home from virtually anyone on the planet, exposing your home to more international buyers.
Please feel free to reach out and I will be happy to provide information, support, and full assistance during your property selling process.
REALTOR® , 403-837-0220
Over 15 years of real estate experience at your service: GPG – Greater Property Group