Curious about how Bitcoin works? Here's a few questions and answers to get you started.
Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of Bitcoins is carried out collectively by the network. Bitcoin is open source; its design is public, no one owns or controls Bitcoin and everyone can take part. Through many of its unique properties, Bitcoin allows exciting uses that could not be covered by any previous payment system. -Bitcoin.org
Bitcoin uses the branch of mathematics known as cryptography. Cryptography allows the community to create mathematical proofs that provide high levels of security. Online commerce and banking already use cryptography. In the case of Bitcoin, cryptography is used to make it impossible for anybody to spend funds from another user's wallet or to corrupt the blockchain.
The blockchain is a public record for all Bitcoin transactions in chronological order. The blockchain is shared between all Bitcoin users. It is used to verify the permanence of Bitcoin transactions and prevent double spending by way of its unalterable ledger making Bitcoin an extremely transparent and predictable form of monetary exchange.
Bitcoin is gaining greater respect and traction by the day, currently. Microsoft, Dish Network, Expedia, Dell and many others are jumping on board to experiment with this new form of money. Flights are available through cheapair.com, and gift cards for virtually anywhere through www.gyft.com. There is a growing list of eager entrepreneurs that are leading the way by sharing digital currency knowledge and changing the world's financial sector in a dramatic way. The Bitcoin community is advancing rapidly with the installation of Bitcoin ATM's starting to pop up all over the planet going from 0 to 380 in just over a year and a half. BitNational Inc. installed Alberta's First Bitcoin ATM in West Edmonton Mall at Entrance 50 and is now expanding across Alberta and British Columbia! Keep checking back for more locations and updates in the near future.