You must have heard about Bitcoin in the past few months. It is a peer to peer cryptocurrency that allows you to buy and sell goods or services without a third party involved. It is also the only method of transactions that is completely secure and no one can counterfeit it.
The software program that enables this is called Bitcoin. Unlike the traditional ways of getting money, you don’t need anyone’s approval before you spend your Bitcoins. You simply store them in an online wallet. With each transaction, you have to pay a fee that goes to the miners.
There are various kinds of computer programs that enable people to store Bitcoins. They all follow the same protocol to help you get the best performance. There are three types that I will describe here.
Bitcoind is the default type of Bitcoin client for Windows. This works like a localhost on the computer. It allows users to send and receive Bitcoins. It has some limitations and is not recommended for large amount of Bitcoins because it can run out of memory.
The first and the most popular kind of client are the top client. It allows you to buy Bitcoins from the different exchange sites. It also enables you to create accounts and send and receive funds from them. There are some downsides, namely the slow download and transfer speed of the software program.
The second choice is the MTGox Client. It was designed by Mike Hearn, a programmer, entrepreneur and an open source developer. It is similar to Bitcoind. However, it has more advanced features like money transfers through SWIFT, advanced multi-signature support and InstantSend.
The third and the most popular option isElectrum. It is similar to Electrum-Qt, a separate Electrum wallet with the graphical interface. It is developed by Peter Todd and is under the MIT license.