Cryptocurrencies and more particularly Bitcoin have revolutionized the way in which transactions Financial transactions are carried out online.
Unlike traditional currencies issued and regulated by central banks, cryptocurrencies are decentralized and based on blockchain technology. This technology makes it possible to create a public and tamper-proof register of transactions, without the need for trusted third parties.
This training dedicated to Bitcoin will allow you to understand the fundamentals of these digital currencies as well as the opportunities and risks linked to their uses. You will also learn the different ways to buy, store and transfer bitcoins.
In this training we will mainly talk about Bitcoin and the blockchain, in the following training we will take the time to discover other cryptocurrencies and the essential concepts of recent years linked to this asset class such as Ethereum, NFTs and [decentralized finance] (##).
THE bitcoincan be used to pay for goods or services like any currency, but it is more often considered the equivalent of digital gold because generating the new bitcoins, like mining gold, is difficult.
In addition, the quantity of bitcoins in circulation is limited which makes this activerare.
In the world of computing and digital technology, it is difficult to maintain the rarity of a file or software because it is quite easy to copy them. Even when a file is protected against copying by its creator, hackers are often able to bypass this security in order to unlock the ability to copy.
The creator of Bitcoin, SatoshiNakamoto managed to solve this problem by preventing anyone from trying to copy bitcoins, which is one of the reasons that makes Bitcoin so unique in the eyes of investors.
Using techniques of cryptographyadvanced, Bitcoin guarantees the integrity of transactions by preventing anyone from spending bitcoins that do not belong to them. This means that the funds cannot be spent by anyone else unless the owner has given express consent.
Finally, the mechanism of consensusdecentralized system of bitcoin, Proof of Work (PoW or proof of work in French), ensures that all nodes in the network agree on the validity of transactions. This makes it difficult to attempt to double spend or fraudulently change transactions.
All of this together makes Bitcoin considered tamper-proof or at least very difficult to corrupt.
When you use cash in the form of coins or bank notes, you own that money, it belongs to you.
On the other hand, when you use electronic money through your bank, neobank or a cryptocurrency exchange platform, this money does not really belong to you, you depend on these companies which authorize you (or not) to spend the money in your account.
If you do not respect the rules imposed by these actors, if the rules change (example: you are Russian in the West) or if the company goes bankrupt, you expose yourself to the risk of no longer being able to freely receive or spend your money or worse, lose access to your funds.
In French-speaking countries like France, Belgium, Switzerland or Luxembourg we are lucky not to have suffered a banking crisis serious enough to bankrupt one of our banks.
But in other countries it has already happened, most recently in Lebanon (summer 2022), it is the customers who alone assume the losses of the banking sector. This means that if your bank no longer has money, it no longer has your money.
Governments around the world are likely to gradually ban cash, if this happens you will be in danger. obligationto depend on banks and therefore expose yourself to the risk of no longer having the slightest control over your money.
Bitcoin was created by one or more anonymous developers operating under the pseudonym Satoshi Nakamoto. To this day, no one knows the true identity of Satoshi Nakamoto.
However, if your curiosity drives you, do not hesitate to read up on the following characters:
- Hal Finney: the first person to receive a Bitcoin transaction
- Nick Szabo: the inventor of the concept of smart contracts
- Adam Back: the inventor of proof of work (Proof of Work)
- David Chaum: the inventor of electronic currencies eCash(1982) and Digicash (1989)
- Wei Dai: the inventor of b-money (1998)
Bitcoin was launched in January 2009, shortly after the 2008 crisis. Moreover, the first block of theblockchainBitcoin signed by its creator contains the following data:
"The Times 03/Jan/2009 Chancellor on brink of second bailout for banks", in French: The Times – 03/Jan/2009 – The chancellor on the brink of a second bailout for banks.
Cryptography is one of the disciplines of cryptology or the science of secrecy. The objective of cryptography is to protect data by ensuring its integrity, confidentiality and authenticity.
The term "crypto" in cryptography and cryptocurrency comes from the Greek word "kryptós" which means hidden or secret.
In cryptography, mathematical methods are used to encrypt information so that it can only be read by someone who has the key to decrypt it.
Cryptography has been used since ancient times to protect military and diplomatic communications, but it has also found applications in civilian life, such as protecting privacy and data integrity. Cryptography has become the key element of computer security and cybersecurity in general.
There is a superb film about the use of cryptography during the Second World War that we recommend you watch: "The Imitation Game". This film is about Alan Turing, one of the founders of modern computing, but also about the use of Enigma, a machine to encrypt and decrypt messages.
When we talk about Bitcoin with a capital B, we are talking about the Bitcoin protocol: the payment network and the user network.
Bitcoin with a lowercase b means the bitcoin currency that we exchange.
Bitcoins do not exist in physical format, however it is possible to store access to your bitcoins on a supportphysical.
In the rest of the training we will see how it is possible to send bitcoins. Please note that it is perfectly possible to store your bitcoins on a physical medium such as paper or hardware wallet, that is to say a secure medium which allows you to protect your bitcoins, a bit like a safe.
Hardware wallet Ledger & Trezor : source Exodus
- Bitcoin is the first cryptocurrency
- Bitcoin shares many similarities with gold
- Bitcoin allows you to regain control over your money
- Bitcoin relies on cryptography, the science of secrecy
- Bitcoins cannot be copied
- Bitcoin with a capital "B" = the Bitcoin protocol or the Bitcoin network
- bitcoin with a lowercase "b" = the bitcoin currency