stands on its own. Here’s why Bitcoin works so well, even though we know almost nothing about its creator.
Even though Bitcoin was created over a decade ago, it has only recently achieved mainstream popularity. To the casual observer, Bitcoin may seem to have come out of nowhere―it was not created by a bank, a company, or any other organization. In fact, Bitcoin’s underlying technology is the work of a single computer scientist who goes by Satoshi Nakamoto.
What’s more, “Satoshi Nakamoto” is merely a pseudonym. Although many people have claimed to be Nakamoto, nobody knows who he really is. Fortunately, Nakamoto’s work stands on its own. Bitcoin’s most innovative quality is the fact that no single person or group maintains control over it―not even its original creator. For this reason, Bitcoin is said to be decentralized.
The All-Importance of Decentralization
Decentralization sets Bitcoin apart from payment services like PayPal and VISA. Each of these services is run by a central company that has the power to do almost anything―they can even ban users or cancel payments. These companies also have a central point of failure, and a single attacker with the right sort of access could wreak havoc on their services.
By contrast, Bitcoin relies on a decentralized network. This network is made up of countless users who process transactions and mine new Bitcoin. No single user has sole authority over the Bitcoin network, nor can they deny access to any other user. Overall consensus is what keeps Bitcoin working, and it is in everyone’s best interest to ensure that Bitcoin works indiscriminately and continuously.
Decentralization also provides security: Bitcoin doesn’t have any single weak point. To attack Bitcoin, someone would need to command more mining power than half of the Bitcoin network. So far, this sort of attack has only targeted Bitcoin’s much smaller competitors. The vast amount of mining power that is being poured into Bitcoin every day means that Bitcoin cannot realistically be attacked.
After ten years of operation, Bitcoin has proven that this model is secure and reliable. Although it may seem unusual that Bitcoin appears to have come out of nowhere, many users are getting used to the idea of a decentralized monetary system. Jubiter makes it easier than ever to leave traditional payment methods behind―sign up and start using Bitcoin today.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.