The Birth of Bitcoin and the Advantages of a Decentralized Payment System

In the previous two chapters, you discovered what money is nowadays, an abstraction of value. We also noted that the concept of money has become less and less tangible over the years, up to the creation of digital money.

In this chapter, we will look at what stands behind blockchain technology, and how it allows us to create and work with digital money.

The following topics will be covered in this chapter:

• How Bitcoin came into existence
• Projects leading up to Bitcoin
• An introduction to Bitcoin
• How traditional payment systems work