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It's being known as a better-than-gold equivalent store of value and a medium of exchange into rival Visa, Mastercard and Paypal. Its unit of account and predetermined characteristics of a finite supply (21 Million complete bitcoin in circulation to avoid inflation) create bitcoin a trustless, permissionless and (will be) frictionless new world currency.
It's the programmable money paradigm which needs no third party intermediaries or centralized governance for all users to agree and accept terms of using it jointly. .
Bitcoin is a technology its digital money backed by blockchain DLT a robust international network of payments and transactional/mercantile exchanges which are entirely decentralized and is based on community consensus voting mechanism for its longest/honest chain. It doesnt depend on banks or governments to function and its creator Satoshi Nakamoto is a group of ghosts.
Bitcoin breathed new life into trying times amidst real estate housing bubble and fractional lending credit debacle and came into existence in October 2008 following the publication of a whitepaper titled, Bitcoin: A Peer To Peer Electronic Cash System (created by the author under the name of Satoshi Nakamoto).
Satoshi combined the knowledge of prior digital currency developments (see the Nakamoto Institute) such as HashCash and B Money and finally got all the pieces to the puzzle to fit. It had been the first to succeed where others failed to engineer a practical, autonomous decentralized peer to peer reviewed cryptocurrency which requires no central authority for money emission, validation of transactions or settlements. .
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The main innovation in Satoshis Bitcoin invention is that the development of a distributed computational hashing system known as the proof-of-work algorithm. It conducts global transaction validations each 10 minutes, allowing the decentralized network technology to come to consensus agreement regarding the state of each transaction and whether the funds are legitimate and should be confirmed for being secured into the next block generated. .
The invention of Bitcoin represents the pinnacle of years of research in distributed systems and cryptography, its own development combines 4 key innovations Which Make the existence of Bitcoin possible:
There is far more to learn about the inner workings of this blockchain and how it all works, but right now we will do our best to develop bite-sized pieces of digestible digital currency content like how to purchase it, trade it, invest it, save it, send it, spend it, get it and even earn it. .
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Building the exchange software in-house: Gather a dedicated team of programmers (friends, freelancers) to construct (and maintain) your exchange program. Make sure they understand how an exchange operates in general, how cryptocurrency and blockchain technology works, and that they implement the above-mentioned components.
From a programming language point of view, the choice of the suitable language might also vary depending on which cryptocurrency you want to implement for your exchange (check out this post). Moreover, make sure that your software is compatible with different payment processing platforms or banks to protect payment transactions within your exchange. .
Most importantly (this is a no-brainer, however some people today seem to have unrealistic expectations), you need to gauge the costs and time associated with developing, maintaining, and constantly upgrading the software in-house. Due to the inherent complex nature, developing an exchange program from scratch will probably be quite costly and might require up 1-2 years (depending on your programmers experiences) until it functions correctly.
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Keep in mind though, that these numbers are just a rough estimation based on our experience since so many different things need to be considered. .
Using free/open source scripts: If you test out GitHub or other forums, then you will see quite a few open-source bitcoin exchange programs. The big benefit obviously is the source code is absolutely free. Nevertheless, there are also a couple dangers that must be considered:
You still need someone with technical knowledge to understand and implement the lines of code within the open-source script. Becoming acquainted with how the script works, will require time and modifications to enable customization, will also need additional time and money.
There is no guarantee that the script is both protected and reliable. It may be buggy, susceptible to hack efforts or in the worst case, includes malicious lines of code, which gradually but unnoticeably extract your funds or bitcoins.
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The amount of development service on an open source system is quite sparse. Most of get redirected here the time, your team of developers will be left on their own to determine how to fix bugs or improve performance. Worst case, if the job is abandoned, you will be left with absolutely no assistance or at all. .