Internet has changed many things, and one of them is our way of seeing the money. It has gone from being something physical to be an intangible asset, a number on a page. We know it’s there because we trust the authority of banks, we believe in its value because we know that entities manage it as if it were physical and tangible money, but we cannot get it out of the air.
However, with Bitcoin, P2P currency booming, the matter is different. No entities in which trust. There is no bank that assures us “this money is true”. Instead, the validity of Bitcoin lies in its technology, in all techniques that ensure that functions as if it were a real currency. Let’s explain what that technology. It is a complex issue considerably, so first draw a simplified diagram of how it works and then we will be entering into the details, which are actually the most important and ensuring the validity of Bitcoin.
