Bitcoin was created as an open-source project in 2009 by an unknown group or individual known as Satoshi Nakamoto. Bitcoin is the first cryptocurrency, a type of digital currency that uses cryptography to verify transactions. This innovation allows Bitcoin to be a peer-to-peer payment system without the need for a central authority (e.g. a bank) to verify and process transactions. That’s why Bitcoin cannot be manipulated, inflated or seized by any government or corporation.
Bitcoin transactions are recorded on a digital ledger known as the blockchain. The blockchain consists of individual blocks, where each block contains information about a group of transactions. Every block contains a reference to the block directly preceding it, meaning that the blocks are linked — hence the name blockchain. Every transaction added to the blockchain is permanent and irreversible.