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Bitcoin is new digital currency that enables instant payments to anyone in the world at virtually no cost. Bitcoin uses peer-to-peer technology to operate with no central authority meaning managing transactions and issuing money are tasks that are carried out collectively by the network. Bitcoin is also the name of the open source software developed in order to use this currency.
The software is a community-driven open source project, released under the MIT license.
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Bitcoin is one of the first implementations of a concept called crypto-currency, which was first described in 1998 by Wei Dai on the cypherpunks mailing list. Building upon the notion that money is any object, or any sort of record, accepted as payment for goods and services and repayment of debts in a given country or socio-economic context, Bitcoin is designed around the idea of using cryptography to control the creation and transfer of money, rather than relying on central authorities.
If you are interested to learn more about the technical details of Bitcoin it is recommended to start with these documents:
These are the basic features of any Bitcoin-like network.
These rules are enforced collectively by the network. While they will not change for Bitcoin, other digital currencies using Bitcoin's technology may change them to suit their needs.
The network is running for more than 32 months yielding to some impressive security features.