To keep track of each of their client\u2019s money, a bank creates a Libro mayor<\/strong> that keeps track of balances based on account numbers<\/strong>.<\/p>\n\n\n\n Here\u2019s a simplified version:<\/p>\n\n\n\n This ledger is maintained by an administrator<\/strong>. It is this administrator that assigns account numbers to clients, and clients make payments by sending a request to the administrator.<\/p>\n\n\n\n In order for the administrator to fulfill this request, there needs to be some sort of authentication process where the client proves that he\/she is the actual account owner.<\/p>\n\n\n\n So the bank most likely creates a username and password combination<\/strong> that\u2019s tied to each account.<\/p>\n\n\n\n If you know your username and the password assigned to an account, then this proves you\u2019re the owner of that account.<\/p>\n\n\n\n The administrator grants (or denies) access to accounts and also maintains the proper balances of each account.<\/p>\n\n\n\n The administrator makes sure that no one spends money they don\u2019t have in their account or spends the same money more than once (\u201cdouble spend\u201d).<\/p>\n\n\n\n For a decentralized digital currency like Bitcoin, this is a problem<\/strong>.<\/p>\n\n\n\n Relying on an administrator creates the problem of centralization<\/strong>. You are not in control of your account! The administrator is.<\/p>\n\n\n\n An administrator can deny access to your account, can block or censor transactions, or even not allow you to open an account at all.<\/p>\n\n\n\n For example, banks have the authority to shut down your account(s) with them. They can also reverse transactions and freeze accounts.<\/p>\n\n\n\n Imagine having dinner with a hot date, and when it came time to pay the bill, you find out that your bank has denied the transaction because it randomly decided to not do business with that specific restaurant.<\/p>\n\n\n\n That\u2019d be pretty embarrassing. Your hot date might think you\u2019re actually broke. Any time you have an entity that can approve or deny something, you are under the control of a centralized third party.<\/p>\n\n\n\n For a decentralized digital currency to work, anyone should be able to open an \u201caccount\u201d and be able to transact with anyone they want. You should NOT have to ask for permission.<\/strong><\/p>\n\n\n\n What\u2019s the solution? Eliminate the administrator.<\/strong><\/p>\n\n\n\n But is there a way you can create an \u201caccount\u201d without an administrator?<\/p>\n\n\n\n Why yes there is. Bitcoin has a solution: Instead of account numbers, use \u201cdirecciones<\/strong>\u201d.<\/p>\n\n\n\n How do you get an address? All you need is a wallet\u2026and there are many available that you can download for free on the internet.<\/p>\n\n\n\n By using addresses instead of account numbers, ANYONE can create their own \u201caccounts\u201d with a wallet software on their own computer without having to ask an administrator for an account number<\/strong>.<\/p>\n\n\n\n You\u2019ll be able to create as many addresses as you like and your wallet software will manage all of them for you.<\/p>\n\n\n\n So unlike bank accounts, an address can be created by anyone within a matter of seconds without needing some sort of third-party administrator<\/strong>. <\/p>\n\n\n\n The use of addresses, which a wallet creates for you for free, allows Bitcoin to be permissionless<\/strong>.<\/p>\n\n\n\n This means that Bitcoin users do not need permission from anyone to be able to join the Bitcoin network.<\/p>\n\n\n\n Wallets give regular people the ability to conduct permissionless transactions<\/strong> without having third parties involved and without the need to register!<\/p>\n\n\n\n Wallets also make Bitcoin (and other crypto) more accessible<\/strong> to more people. As long as you have an internet connection, you can download a wallet app, install it, create a Bitcoin address, and you\u2019re good to go!<\/p>\n\n\n\nAccount<\/strong><\/td> Saldo<\/strong><\/td><\/tr> 001<\/td> $10<\/td><\/tr> 002<\/td> $20<\/td><\/tr> 003<\/td> $50<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n ![\"Bank](\"https:\/\/bpcdn.co\/images\/2022\/02\/28140052\/bank-administrator.png\")
<\/figure>\n\n\n\nAccount<\/strong><\/td> Username<\/strong><\/td> Password<\/strong><\/td> Saldo<\/strong><\/td><\/tr> 001<\/td> Joe<\/td> 9876<\/td> $10<\/td><\/tr> 002<\/td> Angie<\/td> 1234<\/td> $20<\/td><\/tr> 003<\/td> Bill<\/td> 5511<\/td> $50<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n ![\"Payment](\"https:\/\/bpcdn.co\/images\/2022\/03\/23104025\/transaction-denied.png\")
<\/figure>\n\n\n\n![\"\ud83e\udd26\"](\"https:\/\/s.w.org\/images\/core\/emoji\/15.0.3\/svg\/1f926.svg\")
<\/p>\n\n\n\n![\"Remove](\"https:\/\/bpcdn.co\/images\/2022\/02\/28140908\/remove-bank-administrator.png\")
<\/figure>\n\n\n\n![\"\ud83d\udc4d\"](\"https:\/\/s.w.org\/images\/core\/emoji\/15.0.3\/svg\/1f44d.svg\")
<\/p>\n\n\n\nBitcoin Address<\/strong><\/td> BTC<\/strong><\/td><\/tr> 1DmjiSdcaSUPyqEuhqHkLrudpJUYDXct5s<\/td> 2<\/td><\/tr> 3QqQAx4ToxsiiFtXbrDkuCSBGYKd56vTzU<\/td> 15<\/td><\/tr> 1PhGCKEeLjCo6ZGz9NAKL3FvCZACLbV1DC<\/td> 3<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n ![\"Mobile](\"https:\/\/bpcdn.co\/images\/2022\/08\/13011343\/mobile-crypto-wallet-360x360.png\")
<\/figure>\n\n\n\n