Skip to content
Bitcoin is currently the highest valued cryptocurrency in the world, with a market cap of over $1.2 trillion USD. But this monumental value was not accrued overnight. Bitcoin was launched 15 years ago, in 2009, and has been gaining in followers and traction ever since. It was launched in tandem with its underlying technology, blockchain, which serves as a public, distributed ledger on which all movements of Bitcoin, or Bitcoin transactions, are recorded. Today, this infrastructure has proved revolutionary for many other sectors and businesses other than decentralized finance, such as healthcare and voting.
In this article, we take a closer look at where Bitcoin comes from, what is blockchain, and even how to pay with Bitcoin, as we unravel what Bitcoin is and how Bitcoin works.
Where did Bitcoin come from?
To understand how Bitcoin works, we first need to understand where it comes from. Bitcoin was released into the world in 2009. It was the first cryptocurrency ever created, and emerged in the aftermath of the 2008 financial crisis as an alternative currency and the groundwork for an alternative decentralized financial system that would bypass the banks and wealth managers largely responsible for the recent crash.
The mastermind (or masterminds) behind its creation are known as Satoshi Nakamoto, who outlined Bitcoin, how Bitcoin works, its principles and protocol in a White Paper titled Bitcoin: A Peer-to-Peer Electronic Cash System. This decentralized currency, and all that have since followed, are designed to operate without a central authority, such as the government. Transactions are peer-to-peer, meaning there are no intermediaries involved in helping make the transaction happen.
This also means there are no middlemen taking a cut or charging a commission for processing that transaction, making the processing fees associated with Bitcoin transactions often much cheaper than those involving traditional currencies. Bitcoin’s unique approach to digital money sparked a global movement, and thousands of cryptocurrencies, including stablecoins and tokens, have been created since 2009, as well as a surge in interest in blockchain technology across various industries.
What is blockchain?
Blockchain is the backbone to Bitcoin and cryptocurrency. This technology was launched alongside Bitcoin in 2009 and was designed as a decentralized, public ledger on which to record all Bitcoin and other cryptocurrency transactions across a network of computers. Unlike more traditional databases, the blockchain’s distributed nature ensures full transparency and security by allowing anyone to verify transactions. The people or companies responsible for processing and confirming Bitcoin transactions are known as miners, and earn Bitcoin for each transaction they process.
The name blockchain is inspired by the structure of this public ledger. Each transaction is entered into a “block” and linked chronologically to the previous block, creating a continuous “chain” of blocks. This structure makes altering past records nearly impossible, ensuring transparency and building trust among users. Bitcoin users who want their transaction entered into the next available slot on the current block are often charged a premium processing fee by miners in order to move their transaction to the top of the list.
Blockchain technology has since been harnessed by sectors other than decentralized finance and has become an innovative tool and basis for modern systems such as supply chain management, healthcare, and secure voting systems.
Pay with Bitcoin: How it works
Many merchants and businesses have caught onto Bitcoin’s growing popularity and adoption, and allow their customers to pay with Bitcoin directly. However, for those merchants and businesses who are not yet ready for their customers to pay with Bitcoin directly, other solutions exist that allow customers to pay with Bitcoin, while the business itself receives their preferred FIAT currency as payment —ForumPay.
Our crypto payment gateway bridges the gap between crypto consumers and traditional merchants and businesses marketing their goods, products and services in FIAT currency, such as dollars, euros or pounds. By providing a seamless solution that unites both parties on either side of the transaction, we help businesses open the door to new customers and new streams of revenue. Many consumers have fully embraced crypto’s potential and wish to leverage its utility as much as possible. ForumPay makes it possible for them to pay with Bitcoin, Ethereum, USDT, and other popular cryptocurrencies and stablecoins.
To learn more about crypto as a form of payment, and how, as a merchant or business, to accept crypto payments from your customers, visit www.forumpay.com, or get in touch with our sales team to discuss any questions you may have.
