The technology world is in developing day by day. In cyberspace, we encounter new and fresh ideas every day. Some of these ideas are temporary, and it does not take a long time to get out of the technology cycle, but some of these ideas affect all people. One of the ideas uses of cryptocurrencies in e-commerce worldwide. "Bitcoin" is a cryptocurrency that is considered as the first unit cryptocurrency. Bitcoin-based on a peer-to-peer network, it's used for buying and selling on the internet network (In a peer-to-peer network, everyone can share files easily.) The Bitcoin system is decentralized and is not under the management of any bank. For this reason, it was considered people that work in e-commerce worldwide, So Bitcoin can be considered as a beneficial factor in expanding e-commerce.
What is bitcoin?
Bitcoin was created by a person that introduced himself to Satoshi Nakamoto. In 2008, Nakamoto published a document as the Bitcoin that, it, the 2008 financial crisis, was seen as the result of supervision and government support and corruption in the financial system, and this was a motive for him to create Bitcoin. Although this name appears Japanese, Bitcoin's creator has never revealed his details. He, with other fans Bitcoins, Has collaborated through online forums, but he never met with other people at the Bitcoin network. Since the beginning of 2010, he reduced his career in Bitcoin. His latest activity on the bitcoin network, which we know was in 2011. We don't know who Satoshi Nakamoto is? But we know that if he introduces himself one day, he will be a wealthy person. Millions of Bitcoin were generated in the first two years, and Satoshi probably has hundreds of thousands of them. With today's Bitcoin price, he's been a millionaire a long time.
An introduction to Bitcoin Basic Concepts:
Bitcoin Wallet:
To work with Bitcoin, you will need a web or windows software to hold Bitcoins. This software is called a Bitcoin wallet. In the Bitcoin wallet, you will be able to send and receive Bitcoins in your Bitcoin public address. The Bitcoin wallet is available as computer software, mobile application, or web software, and it consists of two parts: public address and private key, just like an email that is containing an email address and password.
Bitcoin Public Address:
Bitcoin public address is a combination of random numbers and letters. The public address belongs to your Bitcoin wallet that can be the same as your bank account number. You can make it available to other people to receive Bitcoins.
Private Key of Bitcoin:
The bitcoin wallet contains encrypted data that's called a private key; it's used to login to the bitcoin wallet and do transactions, just like your email password.
Types of Bitcoin Wallet:
Web wallet:
To create a web wallet account, you can refer to blockchain.info or coinbase.com and register the Bitcoin account.
Desktop wallet:
To download bitcoin wallet software for your PC, you can refer to "bitcoin.org," and according to your computer operating system, choose Windows, Mac, or Linux.
Mobile wallet:
- To download Bitcoin wallet software for your PC, you can refer to "bitcoin.org," and according to your mobile operating system, choose Android, BlackBerry, iOS, or Windows Phone.
Signature:
When you receive or send Bitcoins from your wallet, it's confirmed by a digital signature that is known as the public key encryption, which secures Bitcoin transactions from other fake transactions and prevents bitcoin forgery.
Blockchain:
- Blockchain is a public list of all Transactions that have been done and sent. With this list, anyone can know that each transaction belongs to which public address. Blockchain is like an extensive database that each transaction is registered in sequence, and according to this, it can be understood that each Bitcoin wallet how much is inventory.
- The blockchain also leads to anonymous people because only the public address of the recipient of each Bitcoin is registered. (Of course, this unknown is not 100% because when exchanging Bitcoins into conventional currencies such as USD and EUR, most exchanges are required by legal institutions to register individual customer data, and they can identify people's identity.
Mining Bitcoins:
- The idiom "Mining" refers to the bitcoin extraction process, and the idiom "Miner" refers to the person who executes extraction operations. Mining operations require powerful hardware. Early life Bitcoin, anyone could mine a new block with using computer CPUs. Whatever the number of miners increased, the difficulty of mining new blocks suddenly increased. As far as today, the only way cost-effective mining is using specific hardware.
Proof of work:
- This method that idiom is called "Hash," Your computer's CPU in the Bitcoin network is involved with sophisticated computing as far as can find the right answer. At the same time, a new block is created in Bitcoin that your transactions are registered on a new block. Miner is now entitled to a reward after the original block found. This reward is the same new Bitcoins that are transferred to a miner Bitcoin wallet (e.g., each miner will receive twelve bitcoins for mining every new block.)
- Note that users aren't miners, and they only intend to buy and sell Bitcoin, due to a large amount of information, it may not be appropriate to use a mobile wallet or desktop wallet. Therefore, it's recommended to use a web wallet.
Advantages of Bitcoins:
- Exempt from paying tax
- No third-parties access
Disadvantages of Bitcoins:
- Lack of recognition among people
- Lack of recycling wallet in case of Lost your private key
- Bitcoin value fluctuations
- It does not have a physical nature.
- Ability to steal Bitcoins by hackers and not retrieve them
- Create problems in data if there is a breakdown in the computer's hard disk and hackers attack or wallet damage, resulting in loss of bitcoins
Spend Bitcoin:
It's easy to use and spend Bitcoin. The first step is to find businesses that accept Bitcoins and be trusted.
Bitcoin Impact on E-Commerce:
E-commerce is the same as traditional commerce, with the difference that the tool of work is entirely different. Instead of using paper, persons and time can be used electronic devices and various communications. E-commerce is implemented in all four major market segments: business to business (B2B), consumer to consumer (C2C), business to consumer (B2C), and consumer to business (C2B).
Bitcoin is the most crucial cryptocurrency bringing together two concepts of cryptocurrency and e-commerce. Additionally, cryptocurrencies play a significant role in how e-commerce is expanding globally.
The Bitcoin system has the potential to completely modify existing payments in e-commerce because it offers a unique and powerful payment mechanism for all participants in e-commerce payments. Some reputable webs such as Expedia, Dell, WordPress, etc. has been accepted Bitcoin as one of the payment methods.
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