BitCoin – Knowing the Basics
Published on by Adam
Despite the ever-growing popularity of the cryptocurrency BitCoin as a payment method of choice, it still remains somewhat of a mystery to some people. In this article, we’ll take a look at its development since birth and what using it really entails. We’ll also recommend some online casinos that accept as a payment method.
History to Present Day
BitCoin has been designed to do away with problems inherent in our current online spending system. The major problem is that when we shop online using conventional methods, banks or credit card companies take a cut of our transaction. Another issue is that we place ourselves in the said companies believing that they won’t commit errors; it takes ample amount of trust on users’ part to entrust these companies with your personal and banking details. So, the main premise behind the invention of BitCoin is to do away with that middle-man.
Trying to bypass these conventional online payment systems caused a few questions to instantly arise – How can you prove you’ve paid for something or that you have that money at all? This problem has become so rampant, it’s got a name – The Double Spending Problem.
The recommended solution was to implement a system that has all its users registering all the transactions that happen at all times. As a result, any fraudulent attempt would be instantly tracked and rejected by this communal effort. Also, this prevents any individual, government, or bank to impose a fee on a payment or control its flow. This results in quicker, cheaper, and more efficient transactions online.
After just months of BitCoin’s proposal, it found its way into many people’s lives as they started using it to shop online. And the number of legitimate businesses that accepts BitCoin are growing. Nowadays, even universities accept it a method of payment for university tuition.
Supporters and opponents of BitCoin still disagree on whether it is the way to go with online currency or whether it will hurt our economy. That being said, people on both sides seem to agree that if we can make BitCoin or another equivalent work as a cryptocurrency, clearing all our doubts and trust issues, it has the potential to save our economy.
How Does BitCoin Work?
BitCoin works in a way somewhat similar to an e-mail address. Once you create a BitCoin wallet online, you will be prompted to create an address to share with friends or whoever you want to make a transaction with. You will be able to use this address to pay or receive funds. The main difference from a normal e-mail address is that this BitCoin address will only be used once.
Balances are kept in a shared public ledger known as a block chain. Every transaction made is confirmed and marked in this block chain. This way, BitCoin wallets’ spendable balance is calculated and tracked, and when a transaction occurs, the wallet’s owner’s identity can be verified. This system makes use of cryptography to ensure integrity and that things follow a chronological order.
As a transaction is made, coin value is transferred between wallets and it’s marked down in the block chain. Each transaction includes a piece of mathematical code called a ‘private key’. This serves as a signature verifying the owner of the wallet as well as preventing any further changes being made to the transaction after it’s been made. As soon as the transaction is made, it registers with all other users within approximately 10 minutes. This process is called mining.
Mining is the process of distributed consensus that confirms pending transactions and adds them to the chronological block chain. Besides, it helps safeguard the neutrality of the network while also allowing different computers to agree on the state of the network. Once the transaction enters the block, it will be exposed to stringent cryptographic rules so as to be verified. Due to the chronological interconnectivity of the transactions, a transaction cannot be changed once it’s done as it would invalidate all the other following ones. The system also makes use of something similar to a competitive lottery that stops individuals from easily adding/removing/modifying blocks in the chain.
Casinos Offering BitCoin
Since BitCoin is a fairly young payment method and it still hasn’t fully settled, when opting to use it, it’s important to find a trusted online casino that accepts it. Here at NetEnt Casino, we’re always on the lookout for casinos that are fully regulated and offer a trustable service. We’ve put together a list of these vetted casinos, and here are the top five you might want to look at if you have a BitCoin wallet: