Bitcoin is a decentralized and censorship-resistant protocol, characteristics that stem from its open and free nature. Being decentralized, Bitcoin does not have a central authority controlling the network. Instead, it is managed by a distributed network of nodes that collaborate to verify and record transactions on the blockchain. This decentralization gives Bitcoin unparalleled resilience: even if part of the network is compromised, the system continues to operate thanks to the remaining nodes.

Another fundamental aspect of Bitcoin is its censorship resistance. Since there is no central entity that can block or control transactions, anyone, anywhere in the world, can send and receive bitcoins without fear of censorship. This feature makes Bitcoin a powerful tool for financial freedom, especially in contexts where traditional financial systems are subject to governmental or economic restrictions.

Bitcoin is also a free and always-active protocol, operating 24/7. It has no closing hours, meaning transactions can take place at any time without interruptions. This continuous availability offers a level of flexibility that traditional financial institutions cannot match. Anyone, anywhere in the world, can access the Bitcoin network and participate in transactions, regardless of time or place.

Moreover, using the Bitcoin protocol does not require undergoing identity verification procedures (KYC – Know Your Customer). This means anyone can participate in the Bitcoin network without having to provide personal information to a central authority, thus preserving a higher level of privacy and anonymity compared to traditional financial systems.

However, it’s important to understand that Bitcoin users are not anonymous but pseudonymous. This means that although all transactions are publicly recorded on the blockchain and are traceable, Bitcoin addresses are not directly linked to individuals’ identities. As long as a person’s identity is not linked to their Bitcoin addresses, it is impossible to know who is using the funds. However, once such a link is made, all past and future transactions of that address can be tracked.

All these characteristics make the protocol extremely flexible, but there is a crucial aspect to consider to ensure the security of funds: the management of private keys and the seed phrase. The private key is a sequence of characters difficult to remember, which is why, through BIP39, the seed phrase was implemented. This is a sequence of words selected from a pool of 2048 words that allows access to one’s wallet and enables transactions. In fact, the seed phrase translates the private key into a simpler language for humans, making it easier to save. It is essential to keep this phrase in a safe and offline place because anyone who gains possession of it can access the associated funds. The responsibility for the security of private keys and the seed phrase rests entirely on the user: there are no procedures to recover them in case of loss, nor are there helplines or customer support to assist.

There are various tools available to keep your seed phrase safe, some simpler and others more complex, depending on the amount of funds to protect and your level of paranoia. Among these tools are devices specifically designed for the security of private keys, known as Hardware Wallets. These devices, similar to pen drives, use advanced chips to make hacking difficult and incorporate state-of-the-art security and privacy systems. However, a good device cannot do all the work alone: the user’s attitude and adherence to security best practices remain the primary defenses. Private keys are crucial, so always pay utmost attention in managing your funds!