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Bitcoin Basics

This buzzing terminology has become the start of new era of electronic currency, but virtually. So in simple terms you can say Bitcoins are virtual currency or reference to technology that deals with monetary value digitally. Transactions are generally possible using check, cash or wiring. Now a days this is also possible using this technology called Bitcoin (or BTC), where you pass on the purchaser with your signature that is a long set of security code which is basically encrypted with a set of 16 different symbols. On the other side the purchaser interprets and decodes the code with his/her electronic devices or smart-phones retrieving your crypto-currency.

Bitcoins can also be understood like this; they are a set of digital information exchanged among buyers and sellers, in order to buy and sell goods, services and products. One Bitcoin is Rs. 5,61,190.24 (at the time of writing this blog). The e-transaction achieves its security as well as trust by running on a peer-to-peer system’s network which works like that of Bit-Torrent or Skype following the architecture of a file-sharing system.

Transactional properties of Bitcoins:

  • Irreversibility: Once the bitcoin transaction gets confirmation, it can‘t be reversed (literally by no one). Neither the creator of Bitcoin nor your bank or your miner. Once the money is send, it is sent permanently.

  • Pseudonymous: Neither your transactions nor your accounts stay linked or associated to real world (digital or analog) identities. When you receive a Bitcoins on any of your addresses or unique ID, there is a procedure running in background which chains randomly by generating around 30 characters of unique code and encrypt it so that no one is able to trace the transaction (receiving or sending of Bitcoins).

  • Fast and global: The Bitcoin transaction is circulated almost immediately within the network, faster than any other transaction and hence gets its confirmation within minutes. So it does not matter whether you send a Bitcoin to your friend next door or someone residing on the opposite side of the world.

  • Secure: Bitcoin funds uses public key encryption system for locking. Hence only the authenticated proprietor of the private key can send or receive Bitcoins.

  • No Permission required: You do not have to seek permission from anybody for using Bitcoins or doing Bitcoin mining. It is just a software that is available free. Install it and you will be able to send and receive Bitcoins or other people.

Bitcoin implements the public key encryption and innovative advancement for bookkeeping which maintains and attains the authorization, approval, balance verification, proscription on double spending of each and every Bitcoins. All this bookkeeping with utmost security happens in real-time and has no cost.

The cryptographic techniques guarantee the authorization. So you have to have a private key for transaction. The secret key you will be using is so complex that, for the fastest super computers to crack the encryption, it would take longer than the earth’s existence for cracking it, which means its nearly 100% secured.

Where can I find Bitcoins?

If you are new to the world of crypto-currency like Bitcoins, and want to have some, then you can get these secured e-currencies from the below mentioned places –

  • Places where crypto-currency exchanges with ‘regular’ coins or money

  • In Bitcoin ATMs, where you can transform Bitcoins with cash or vice versa.

Disclaimer: These topics are intended to give readers a preview of technology topics, under our scheme of ‘Free Basic Education’ and does not claim to be technically satisfactory.

Readers reproducing a part of the text printed here are advised to do further detailed reading and understand the subject-matter.

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