Bitcoin gives people the freedom to make transactions on their own terms. Each user can send and receive payments, as well as for cash, but can also participate in more complex contracts. Multiple signatures allow transactions to be accepted only if the network a specific number of certain people would agree to sign it. This allows you to develop future innovative dispute resolution service. This service will allow a third party to accept or reject the transaction, in case of disagreement between the parties without taking control of their money. In contrast to cash and other payment methods, Bitcoin always leaves a publicly available evidence that the transaction took place, which could potentially be used as a decision against companies with fraudulent activities.
An ad-hoc, decentralized, or a peer network is overlay computer network based on the equality of participants. There are no dedicated servers in such a network, and each node (peer) is both the client and the server function. Unlike client-server architecture, the organization can store network performance with any number and any combination of available nodes. Participants in the network are the peers.
There is some number of machines in the network, each able to communicate with any of the others. Each of these machines can send requests to other machines to provide any resources within the network and thus act as a client. As a server, each machine must be able to handle requests from other machines on the network to send something that has been requested. Each machine must also perform some auxiliary and administrative functions (eg, keep a list of other known computers-“neighbors” and maintain its relevance). Any member of the network does not guarantee its presence on a regular basis. It can appear and disappear at any time, but when the network reaches a certain critical size, a lot of machines work simultaneously.
Using the peer-to-peer (P2P) means that there is no central authority, which issues new money or records all transactions, in this system. Instead, these tasks are performed collectively by all network nodes. The benefits of this approach:
A simple transfer of money through the Internet, without having to trust middlemen. Third parties can not prevent or control your transactions.
Transactions through Bitcoin is practically free, whereas credit cards and online payment systems typically require a commission of 1-5% of the amount of each transfer in extra trading costs (which can reach several hundred dollars).
Lack of instability that causes the banking animation (fractional reserve banking) and central bank policy.
Limited inflation is monetary support system Bitcoin is distributed evenly (by CPU power) across the network, not monopolized by banks.