Bitcoin is an electronic currency and digital currency produced by open source P2P software, and it is a virtual asset of the network. Bitcoin is also literally translated as "Bitkin". Bitcoin is based on a set of passwords and is generated by complex algorithms. This rule is decentralized and is not interfered by any individual or organization. Anyone can download and run the Bitcoin client to participate in the manufacture of Bitcoin; Bitcoin uses electronic signature to realize circulation, and checks repeated consumption through P2P distributed network. The generation and consumption of each bitcoin will be recorded and informed to the whole network through P2P distributed network, and there is no possibility of forgery.
Bitcoin is not issued by a specific monetary institution, but is generated by a large number of calculations of a specific algorithm. Bitcoin economy uses a distributed database composed of many nodes in the whole P2P network to confirm and record all transaction behaviors. The decentralized nature of P2P and the algorithm itself can ensure that the currency is not manipulated by people by creating a large number of bitcoins. The design based on cryptography can make bitcoins only be transferred or paid by the real owners. This ensures the anonymity of currency ownership and circulation transactions.