Bitcoin is the world’s first cryptocurrency. Many consider Bitcoin to be the gold standard of cryptocurrency, and its launch in 2009 irrevocably revolutionized the world of money. Although it is still in its infancy, there is lots of room for expansion.
For the time being, let us concentrate on the origins of Bitcoin and what makes it so special. To do so, three key features of Bitcoin and cryptocurrency in general must be understood. The first is the origin of cryptocurrency, the second is blockchain technology, and the third is its progression from the ‘Silk Road.’
The History of Bitcoin
Bitcoin, the world’s first cryptocurrency, was founded in 2008 by what is thought to be a group of unknowns under the identity “Satoshi Nakamoto.” Though it is difficult to establish Bitcoin’s initial listing price, it began trading in 2010 between $0.0008 and $0.08. It’s difficult to believe that it’s now worth more than $45,000 a little more than a decade later.
Despite this, Bitcoin’s greatest accomplishment is blockchain technology. It is vital to realize that blockchain technology underpins all aspects of cryptocurrency. There would be no cryptocurrency if blockchain technology did not exist. If either hopes to function, they must coexist.
What Exactly Is Blockchain Technology?
To put it simply, blockchain technology is a database. The most important conclusion, though, is transparency. Instead of a database that can only be accessible by a select few, blockchain provides a vast database that can be easily examined by any number of individuals. Numerous people may be concerned about this, but in truth, transparency has many advantages.
Recently, approximately $660 million was stolen from Polygon, one of the world’s largest blockchains. One might imagine the fury in the crypto world if this was considered the largest crypto heist. Many of the stolen funds were frozen as a result of blockchain technology, and the hackers were swiftly identified. The majority of the coins have now been returned, with more on their way.
Blockchain, in addition to transparency, provides a decentralized platform. Again, Bitcoin was the first to actually develop a free market system, which can only be realized through the use of a decentralized platform. Simply simply, no one owns Bitcoin or most other cryptocurrencies. This is because Bitcoin cannot be generated or destroyed. There is just a limited supply, and that’s all there is. Now, crypto can be ‘found’ by mining, but that is a separate issue.
To be more specific, crypto transactions are visible to everyone. Furthermore, they are decentralized, or owned by no one other than individuals who own them.
What Exactly Was The Silk Road?
The Silk Road was an online illicit market launched in February 2011 by the pseudonymous “Dread Pirate Roberts” (later known to be Ross Ulbricht) and named after the historical network of trade routes that connected Europe and Asia. Fortunately, the Silk Road was shut down in 2013, and Ross Ulbricht is currently serving a life sentence in a Tucson, Arizona, prison.
This may come as a surprise to many, but it is vital to remember that Bitcoin was never intended to operate independently of the Silk Road. Furthermore, to complete transactions, ‘dark wallets’ and the Tor browser were necessary, making it difficult for the average trader to use or even be interested in utilizing.
Thankfully, as of last year, more than $1 billion has been seized from the Silk Road, a large portion of which can be attributed to the use of blockchain technology. Transparency is the key word here. Because of the invention of Bitcoin, users may now exchange coins on a wide range of blockchains, which provide transparency and security to all users.