What is Bitcoin?

Bitcoin is a digital currency protocol which operates free of any central control or the oversight of banks or governments. Bitcoin it relies on peer-to-peer software and cryptography, called a blockchain. It uses the proof-of-work consensus algorithm, which has been known to be resource hungry.

As a public ledger, the Bitcoin blockchain records all bitcoin transactions and copies are held on servers around the world. Anyone with a spare computer can set up one of these servers, known as a node. Consensus on who owns which coins is reached cryptographically across these nodes rather than relying on a central source of trust like a bank.

Every transaction is publicly broadcast to the network and shared from node to node. Every ten minutes or so these transactions are collected together by miners into a group called a block and added permanently to the blockchain. This is the definitive account book of bitcoin. In much the same way you would keep traditional coins in a physical wallet, virtual currencies are held in digital wallets and can be accessed from client software or a range of online and hardware tools.

Bitcoin has a maximum supply of 21 million coins. Bitcoins can currently be subdivided by seven decimal places: a thousandth of a bitcoin is known as a milli and a hundred millionth of a bitcoin is known as a satoshi.

Bitcoin definition - crypt currency - blockchain - 1st blockchain

Bitcoin and Electra Protocol

Bitcoin and Electra Protocol share the same base blockchain technology, like many blockchain projects also do. First, the original blockchain code for Electra Protocol is based on the 2020 Bitcoin Core client. But instead of relying on the proof-of-work consensus, the developers exchanged it in favor of the energy-efficient proof-of-stake consensus. Also countless of innovations have contributed to make Electra Protocol a unique blockchain system today second to none.

Besides technical aspects, the Electra Protocol community is sharing the same spirit like Bitcoin: all blockchain developments are done by volunteers, the blockchain technology is open-source, and the blockchain was not initiated using any means of public funding – just like Bitcoin.

One of the biggest differences of both protocols are the innovative characteristics of Electra Protocol: instant transactions and near zero cost Рin comparison to slow and expensive transactions which Bitcoin has. Electra Protocol is adding further functionalities, such as multi-currency payments, and smart contracts support. The compatibility to Bitcoin makes Electra Protocol also capable of using innovations developed for Bitcoin, such as the Lightning Network.