What is Bitcoin?

Bitcoin was introduced as an open-source software in 2009, Bitcoin is a consensus network that enables a new payment system and a completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective, it is pretty much like cash for the Internet. Bitcoin can also be seen as the most prominent triple entry bookkeeping system in existence.

How is the ownership of bitcoins arranged? In reality the ownership implies that an individual can spend bitcoins associated with a particular address. The first step requires, a payer to digitally sign the transaction by utilising the corresponding private key. Without this private key, a transaction is not signed which means that the bitcoins cannot be spent. The network verifies the signature by utilising the public key.