Bitcoin is a digital or virtual currency that uses peer-to-peer technology to facilitate instant payments. Bitcoin is unique in that there are a finite number of them: 21 million.
Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.
Bitcoin is decentralized, meaning that it is not controlled by any single entity. Instead, the network is maintained by a group of volunteer miners, who are rewarded for their efforts with bitcoins.
Bitcoin is often viewed as an alternative to traditional currencies such as the U.S. dollar. However, it should be noted that Bitcoin is still a young currency and its value can be volatile.
What is Ethereum?
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.
Ethereum is powered by the Ether token. Ether can be traded for traditional currencies such as the U.S. dollar or Bitcoin.
What is a cryptocurrency?
A cryptocurrency is a digital or virtual currency that uses cryptography to secure its transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning that they are not controlled by any single entity.
What is Bitcoin mining?
Bitcoin mining is the process by which new Bitcoins are created. Miners are rewarded for their efforts with bitcoins.
What is a blockchain?
A blockchain is a digital ledger of all cryptocurrency transactions. It is constantly growing as "completed" blocks are added to it with a new set of recordings. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. Bitcoin nodes use the block chain to differentiate legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.
What is Bitcoin arbitration?
Bitcoin arbitration is the process of resolving disputes between buyers and sellers of Bitcoin. It is done through the use of a third party service that acts as an intermediary.
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