110. DIGITAL COIN

♤ Bitcoin is a peer-to-peer (i.e. no central authority to issue new money or to keep track of the transactions) network based anonymous (that the real world identity of the parties of a transaction can be kept hidden from the public or even from the parties themselves) digital currency.

♤ It was started by an anonymous software developer (going by the name of Satoshi Nakamoto) in 2008 and since its inception; it has grown into a technology, a currency, an investment vehicle, and a community of users.

♤ How is Bitcoin an innovation?

o In Digital payment system the tough part is making sure that nobody spends the same money more than once. Traditionally, a central authority (For Example - PayPal) verifies all of the transactions.

o However in Bitcoin the core innovation is that it uses consensus in a massive peer-to-peer network to verify transactions.