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of forex waluty online writing takes up about 145GB). But it differs from fiat digital currencies in several important ways: 1 Decentralization, bitcoins most important characteristic is that it is decentralized. The first miner to get a resulting hash within the desired range announces its victory to the rest of the network. 3 Pseudonymity, while senders of traditional electronic payments are usually identified (for verification purposes, and to comply with anti-money laundering and other legislation users of bitcoin in theory operate in semi-anonymity.
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They get to do this as a reward for creating blocks of validated transactions and including them in the blockchain. It is created and held electronically. Bitcoin solves the double spending problem of electronic currencies (in which digital assets can easily be copied and re-used) through an ingenious combination of cryptography and economic incentives. In electronic fiat currencies, this function is fulfilled by banks, which gives them control over the traditional system. In what ways is it different from traditional currencies? This could conceivably enable microtransactions that traditional electronic money cannot. These group outstanding transactions into blocks and add them to the blockchain. And, the number of bitcoins awarded as a reward for solving the puzzle will decrease.
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