Overview
Bitcoin is a peer-to-peer electronic cash system that operates without a central bank or single administrator. It uses a proof-of-work consensus mechanism to secure the network and issue new units of currency.
Key Characteristics
- Fixed Supply: Only 21 million bitcoins will ever exist.
- Decentralization: Managed by a global network of nodes.
- Halving: The reward for mining new blocks is halved approximately every four years.
Impact
Bitcoin introduced the concept of digital scarcity and paved the way for the entire cryptocurrency and blockchain industry.