BITCOIN – BENEFITS AND RISKS

Abstract

Bitcoin, new digital money, recently got into focus. It uses P2P interaction where each owner transfers the electronic coin to the next owner signing and adding to the end of the coin a hash of the previous transaction and the public key of the next owner. Payment verification is accomplished by notifying the entire network about the transaction. This prevents double-spending and avoids the generation of nonexistent money. Personal information between parties in the transaction are not transferred. Unlike completely anonymous transaction, the