Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network. Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part. Through many of its unique properties, Bitcoin allows exciting uses that could not be covered by any previous payment system. For more info visit : What is Bitcoin?
In 2011 a private party, "Casascius" began creating physical Bitcoins that can be used to trade the currency. These coins are currently recognized as "tokens" and can be graded by ANACS.