Explore all the bitcoin features which separate the digital currency from traditional fiat as well as the previous virtual currencies.
Welcome to a new week of Cryptographics. In this infographic, we are enlisting some of the bitcoin features that gave rise to a world of cryptocurrencies. Those characteristics of bitcoin, which laid the foundation for blockchain technology. The bitcoin features that made bitcoin apple in a bucket full of oranges.
Let’s explore from this cool Infographic
Bitcoin Features That Make It Special
1) Decentralized Model
The key characteristic or feature of bitcoin is that it is a completely decentralized model. There is no hierarchy. All the nodes/users have the same rights or control over the network. Moreover, no central authority or government have control over bitcoin.
Since there is no central governing authority, the bitcoin protocol doesn’t require any identity proof. This further implies that there are no KYC checks or identity checks. Hence, you don’t need an identity proof before opening a bitcoin account (or wallet). In order to operate a bitcoin wallet or make a transaction, there are two primary keys that you need. The Public and Private Keys.
3) Immutable and Secure
Another key bitcoin feature is that it is immutable and hence completely secure. The blockchain records and time-stamp each transaction. These transactions are stored, in blocks, on the bitcoin blockchain. Furthermore, the cryptographically protected block are linked to each other. Thus the blockchain is immutable. Once the transaction is recorded and stored inside the chain, it is impossible to delete or modify it
4) Transparent and Traceable
The bitcoin chain is completely transparent. Any transaction, in the history of bitcoin, can be traced. Moreover, each node can conceive this information from any corner. The transparency feature prevents any kind of fraud activities in the network. But take a note that the public key can be traced back, however, the identity of the owner is nearly impossible (due to its anonymity feature)
5) Authentication and Verification
All transactions made on bitcoin are validated by the other miners or nodes of the network. Hence, it is impossible to spend the same bitcoin twice or indulge in fraudulent transactions. In rarest of the rare cases, if miners hold more than 50% of the bitcoin network, then an attack might be possible.
The final part paints a future with wider adoption of cross-border payments using bitcoin and a payment network that enables people to trade, make transfers with bitcoin, and convert it into other currencies.