Creation of Bitcoin Bitcoin is worlds first cryptocurrency. It is a decentralized digital currency and accounting ledger that is based on cryptography and p2p network. Created by pseudonymous Satoshi Nakamoto in january 3 2009 the first block was mined as described by bitcoin's white paper released roughly 2 months prior by Satoshi ,it was the genesis block . 2008 financial crisis which shook people’s faith in banks and governments led to the concept of bitcoin as a trustless economic system you can actually trust cause of the decentralized concept of governance. No authority can change the rules in order to protect the interests of the few against society's prosper in an attempt to maintain status quo. Proof of Work (PoW) Consensus Bitcoin is using proof of work (PoW) consensus in order to process transactions and reward members of the network, this process is called mining and miners are getting bitcoins rewards based on their computing power that are contributing to the network, SHA-256 hashing algorithm is used for the mining process in order to create bitcoins and bitcoin addresses. Bitcoin's supply is cutting in half after every 210,000 blocks mined and its called halving. Halving is an important event in bitcoin's economics and historically had a great impact on market valuation. Bitcoin mining Mining bitcoin efficiently you need an Application-Specific Integrated Circuit device (ASIC), ASICs are highly efficient but are limited on mining a specific algorithm. Originally bitcoin was indented to be mined by cpu, increased adoption and market value of bitcoin brought ASIC miners that dominated bitcoin mining since then. There is a debate on how ASICs dominance has influenced the decentralized nature of bitcoin, newer cryptocurrencies have a tendency to be ASIC resistant to avoid centralization and secure the network from 51% attack.