Bitcoin Crypto Circle

A. Is Bitcoin a cryptocurrency?

Bitcoin is an electronic currency, digital currency, generated by open source P2P software, and is a virtual network currency. Bitcoin is also paraphrased as “bit gold”. Abbreviation: BTC.

B. How Bitcoin is Calculated

To understand the technical principles of bitcoin, you first need to understand two important cryptographic techniques: HASH code: a The long string is converted into a fixed-length string, and the conversion is irreversible, that is, it is impossible to guess the original string from the HASH code. SHA256 is mainly used in the bitcoin protocol.
Public key system: Corresponding to a public key and a private key, keep the private key in the application, and publish the public key. When A transmits information to B, it can use A’s private key to encrypt the information, and B can use A’s public key to decrypt the information, so as to ensure that a third party cannot pretend to be A to send information; at the same time, when A transmits information to B, it uses B’s public key The key is encrypted and sent to B, who then decrypts it with his own private key, which ensures that a third party cannot eavesdrop on the communication between the two. The most common public key system is RSA, but the bitcoin protocol uses the lliptic Curve Digital Signature Algorithm. What’s the difference between cash and bank accounts? bitcoin is electronic currency, and the unit is BTC. Also used in this article to refer to the entire bitcoin system. Like opening an account in a bank, the corresponding concept in bitcoin is an address. Everyone can have one or several bitcoin addresses, which are used to pay and receive money. Each address is a string starting with 1, such as I have two bitcoin accounts, and. A bitcoin account is uniquely determined by a pair of public key and private key. To save the account, you only need to save the private key file. Unlike bank accounts, banks will keep all transaction records and maintain the book balance of each account, while bitcoin transaction records are jointly maintained by the entire P2P network through a pre-agreed agreement. How much money is in my account address? Although software using bitcoin can see the current account balance, unlike a bank, there is no one place to maintain the book balance of each address. It can only calculate the account balance in real time through all historical transaction records. How do I pay? When I pay from address A to address B of the other party, the payment amount is e. At this time, both parties will announce the transaction information to each network node, telling address A to pay address B, and the payment amount is e. In order to prevent a third party from forging the transaction information, the transaction information will be encrypted with the private key of address A. At this time, the network node that receives the transaction information can use the public key of address A to verify that the transaction information is indeed sent by A. Of course, the trading software will do these things for us, we only need to enter the relevant parameters in the software. What will the network node do after receiving the transaction information? This is the most important part of the entire bitcoin system and needs to be elaborated. For the sake of simplicity, only the currently implemented bitcoin protocol is used here. In the current version, each network node will save all transaction information through synchronization. All transaction information that has occurred in history is divided into two categories, one is “verified” transaction information, that is, the transaction information that has been verified, which is stored in a series of “blocks”. The information of each “block” is the ID of the previous “bock” (the ID of each block is the HASH code of the block’s HASH code) and the newly added transaction information (see an actual block). The other category refers to the transaction information that has not been “verified”, and the transaction information just paid above belongs to this category. When a network node receives new unverified transaction information (maybe more than one), since the node saves all the transaction information in history, it can calculate the book balance of each address at that time, so as to calculate the Whether the transaction information is valid, that is, whether there is sufficient balance in the payment account. After removing invalid transaction information, it first takes out the ID of the last “block”, then combines these unverified transaction information with the ID, plus a verification code to form a new “block”. The above construction of a new block requires a lot of computing work, because it needs to calculate the verification code, so that the above combination becomes a block, that is, the first few digits of the HASH code of the block’s HASH code are 1. Currently, the first 13 bits are required to be 1 (approximately, not sure about the specific method), which means that if the block is generated by the enumeration method, the average number of enumerations is 16^13 times. Using CPU resources to generate a block is called “gold mining”, because the production of the block will get a certain reward, and the reward information has been included in the block. When a network node generates a new block, it broadcasts it to other network nodes. But this network block will not necessarily be accessed by the networkYes, because there may be other network nodes that have produced blocks earlier, only the earliest block or the block with the most subsequent blocks is valid, and the remaining blocks are no longer the initial blocks of the next block. How does the other party confirm that the payment is successful? When the payment information is distributed to the network node, the network node starts to calculate whether the transaction is valid (that is, whether the account balance is sufficient to pay), and tries to generate blocks containing the transaction information. When a total of 6 blocks (1 direct block and 5 subsequent blocks) contain the transaction information, the transaction information is considered “verified”, so the transaction is officially confirmed, and the other party can confirm that the payment is successful. A possible problem is that if I pay the balance in address A to address B, and at the same time pay to address C, if only the single-bit transaction is verified, it is valid. At this point, my way of cheating is to generate 6 blocks containing only B and send them to B, and generate 6 blocks containing only C and send them to C before the truth is revealed. Since the CPU time I need to generate the block is very high, compared to the whole network, the probability of my success in cheating is very small. What is the motivation for network nodes to produce blocks? As can be seen from the above description, in order to make the transaction information valid, the network node needs to generate 1 and 5 subsequent blocks to contain the transaction information, and such block generation is very CPU-intensive. How to get other network nodes to help produce blocks as soon as possible? The answer is very simple. The protocol stipulates that the address that produces the block will be rewarded with BTC, and the transaction fee promised by both parties. At present, the reward for producing a block is 50BTC, and it will be halved every four years in the future. For example, between 2013 and 2016, the reward is 25BTC. Are transactions anonymous? Yes and no. All BITCOIN transactions are visible, we can check all transaction records of each account, such as mine. But unlike the banking monetary system, everyone’s account itself is anonymous, and everyone can open many accounts. Overall, the so-called anonymity is not as good as claimed. But there is another benefit of bitcoin for black market transactions, it cannot be frozen. Even if the police can trace a bitcoin address, there is no way to do it unless the computer used by the exchange is traced based on the network address. How to ensure that bitcoin does not depreciate? In general, the value of a currency is inversely proportional to the amount of currency issued when trading activity is comparable. Unlike traditional money markets, where the central bank can determine the amount of money to be issued, there is no central issuer in bitcoin. Only by producing blocks, a certain amount of BTC currency can be obtained. Therefore, the new increment of bitcoin currency is determined by: 1. The speed of block production: The bitcoin protocol stipulates that the difficulty of producing a block is fixed at an average of 2016 blocks every two weeks, and one block is produced in about 10 minutes. Moore’s Law, where CPU speeds double every 18 months, doesn’t speed up production blocks. 2. The number of rewards for producing blocks: Currently, the reward for each block produced is 50 BTC, which is halved every four years. In 2013, the reward amount was 25 BTC, and in 2017, the reward amount was 12.5 BTC. Combining the above two factors, the speed of bitcoin currency issuance is not controlled by any single node in the network node. Its protocol makes the currency stock known in advance, and the maximum stock is only 21 million BTC

C. What does Bitcoin ETH mean

Bitcoin is BTC, and ETH is Ethereum.
The concept of Bitcoin (Bitcoin) was originally proposed by Satoshi Nakamoto on November 1, 2008, and was officially born on January 3, 2009 [1]. The open source software designed and released according to the ideas of Satoshi Nakamoto and the P2P network built on it. Bitcoin is a virtual encrypted digital currency in the form of P2P. Peer-to-peer transmission means a decentralized payment system.
Ethereum (English) is an open source public blockchain platform with smart contract functions, which provides a decentralized Ethereum Virtual Machine (Ethereum Virtual Machine) through its dedicated cryptocurrency Ether (Ether, referred to as “ETH”). ) to handle peer-to-peer contracts.

Warm reminder:
1. The above information is for reference only and does not make any suggestions;
2. According to the “Announcement on Preventing Token Issuance Financing Risks”, there is no approval in my country digital currency trading platform. According to my country’s digital currency regulations, investors have the freedom to participate in digital currency transactions at their own risk.
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D. Bitcoin What is Bitcoin How to make money

Bitcoin is a P2P form of digital currency. Peer-to-peer transmission means a decentralized payment system. Bitcoin can be cashed out and can be exchanged for mosthome currency. Users can use bitcoin to buy some virtual items, such as clothes, hats, equipment, etc. in online games. As long as someone accepts it, they can also use bitcoin to buy real-life items.
From the essence of Bitcoin, the essence of Bitcoin is actually a special solution generated by a bunch of complex algorithms. A particular solution refers to one of the infinite (in fact, Bitcoin is finite) solutions to the system of equations. Each particular solution solves the equation and is unique. [8] Taking the RMB as an analogy, Bitcoin is the serial number of the RMB. Once you know the serial number on a banknote, you own the banknote. The mining process is to continuously seek the special solution of this equation system through a huge amount of calculation. This equation system is designed to have only 21 million special solutions, so the upper limit of Bitcoin is 21 million.
To mine bitcoins, you can download special bitcoin computing tools, then register with various cooperative websites, fill in the registered user name and password into the calculation program, and then click the calculation to officially start. After completing the installation of the Bitcoin client, you can directly obtain a Bitcoin address. When someone pays, you only need to paste the address to others, and you can pay through the same client. After the Bitcoin client is installed, it will be assigned a private key and a public key. You need to back up your wallet data containing your private key to ensure that your property is not lost. In the unfortunate event that the hard drive is completely formatted, personal bitcoins will be completely lost.

E. What is the difference between encrypted currency and non-encrypted currency? Encrypted digital currency and non-encrypted digital currency


Non-encrypted Cryptocurrency (enterprise currency):

1, personal behavior

2, the company makes its own money

3, cannot be decentralized

4. Unable to trade on international trading platforms

5. Unlimited issuance

6. No mining pool URL, no original code

7. Price controllable , mostly one-way relationships (canteen meal tickets of a company, Q coins, etc.)

Open source digital cryptocurrency:

1. Decentralization – not affected by individuals, companies, countries Bank supervision

2. Limited release

3. Free trade on international trading platforms

4. There is a mining pool website, original code

5. No tax, no freeze, uncontrollable price

Benefits of cryptocurrency:

1. Compared with paper money, it saves The cost of printing the banknote itself, data auditing, anti-counterfeiting, escort circulation, vault storage, etc.

2. Completely decentralized, there is no issuer, it is impossible to manipulate the number of issues.

3. No borders. If you trade with cryptocurrencies, directly enter the account address, click the mouse, wait for the network to confirm the transaction, and a large amount of money will pass.

4. Any store that uses cryptocurrency transactions can save the cost of taxes and a large number of fees for capital supervision.

5. It is not controlled by the central bank, and the number is limited, which can completely resist the pressure of inflation. Let the wealth of the people preserve and increase in value. (Rarity is more expensive)

(5) Extended reading of Bitcoin crypto circle

Cryptocurrency other than Bitcoin, also known as altcoins, altcoins (English: altcoins) , part of it is generated with reference to the idea, principle, and source code of Bitcoin. It is a virtual currency similar to Bitcoin. Currently, there are more than 800 cryptocurrencies in circulation.

Because Bitcoin itself does not have an authoritative issuer and state power to maintain its authority and uniqueness, Bitcoin and its imitators can only get along on an equal footing. does not have absolute exclusive status.

F. What is Bitcoin, popularly

It was a kind of network virtual currency at first. It is characterized by decentralization, anonymity, and can only be used in the digital world. It does not belong to any country or financial institution, and is not subject to geographical restrictions. It can be exchanged anywhere in the world. Therefore, it is used by some criminals as a money laundering tool. . In 2013, the U.S. government recognized the legal status of Bitcoin, causing the price of Bitcoin to skyrocket.

Extended information:

Bitcoin is electronic cash similar to email, both parties to the transaction need a “Bitcoin wallet” similar to an email address and a “Bitcoin address” similar to an email address. As with sending and receiving emails, the sender sends bitcoin directly to the recipient’s address via a computer or smartphone.

From the essence of Bitcoin, the essence of Bitcoin is actually a special solution generated by a bunch of complex algorithms. A particular solution refers to one of the infinite (in fact, Bitcoin is finite) solutions to the system of equations. Each particular solution solves the equation and is unique.

Many websites for tech gamers have started accepting bitcoin transactions. Including sites like Mtgox, BTCChina, and some Taobao stores, and even accept Bitcoin to exchange dollars, euros and other services.��. There is no doubt that Bitcoin has become a real currency in circulation, not a virtual currency like Tencent’s Q coin.

G. What are BTC, LTC, ETH, ETC, BCH?

They are:



The concept of Bitcoin (BitCoin) was originally proposed by Satoshi Nakamoto in 2009, and the open source software designed and released according to the ideas of Satoshi Nakamoto and the P2P network built on it. Bitcoin is a P2P form of digital currency. Peer-to-peer transmission means a decentralized payment system.

Bitcoin Cash

Bitcoin Cash is a new version of Bitcoin with different configurations launched by a small group of Bitcoin developers.

(7) Extended reading of Bitcoin crypto circle:

Virtual currency refers to non-real currency. Well-known virtual currencies such as Internet coins of Internet companies, Q coins of Tencent companies, Q points, coupons of Shanda companies, micro coins launched by Sina (used for micro games, Sina reading, etc.), chivalrous ingots (used for chivalrous Taoist games) ), silver pattern (for Bixue Qingtian game).

The popular digital currencies in 2013 include Bitcoin, Litecoin, Unlimited Coin, Quark Coin, Zeta Coin, BBQ Coin, Penny Coin (external network), Invisible Gold Bar, Red Coin, Prime Coin. At present, there are hundreds of digital currencies issued around the world. The legend of “bit gold, Wright silver, infinite copper, penny aluminum” is popular in the circle.

H. Who can talk about the cryptographic principles of Bitcoin

The cryptographic algorithm maintains the operation and transactions of the Bitcoin system

I. History of Bitcoin

On November 1, 2008, a man calling himself Satoshi Nakamoto posted on a secret cryptography discussion group A research report was published, and the report explained his new vision for electronic money – Bitcoin was born!
On January 3, 2009, Satoshi Nakamoto mined the first batch of 50 bitcoins on a small server in Helsinki, Finland.
On May 21, 2010, the first Bitcoin transaction: Florida programmer Laszlo Hanyecz used 10,000 BTC to buy a $25 pizza coupon.
On July 16, 2010, the price of BTC appreciated from $0.008 to $0.08, the first violent fluctuation in price, showing the rise of new things.
On July 17, 2010, the first Bitcoin platform was established.
On November 6, 2010, the price on MTGOX hit $0.5, at which point the Bitcoin economy hit $1 million.
On December 7, 2010, the first portable device-to-portable device transaction was implemented on NOKIA900, with a transaction volume of 0.42BTC.
On February 9, 2011, the price reached $1 for the first time, equivalent to the US dollar. After the news that BTC is equivalent to the US dollar was widely reported by the media, it aroused great attention, and the number of new users increased greatly. In the following two months, exchange trading platforms for Bitcoin, British pound, Brazilian currency and Polish currency have been opened successively.
On March 18, 2011, the BTC/USD exchange rate hit a 7-week low, falling to $0.7.
On August 20, 2011, the first Bitcoin Conference and Expo was held in New York, and the attention of Bitcoin hit a record high in Google Trends, when the price was $11.
On November 14, 2011, the price of Bitcoin hit a new half-year low at $1.99.
On September 15, 2012, the London Bitcoin Conference was held, at which time the price of Bitcoin was $11.8.
On September 27, 2012, the Bitcoin Fund was established, at which time the price of Bitcoin was $12.46.
On November 25, 2012, the first Bitcoin conference in Europe was held in Prague, Czech Republic. At this time, the price of Bitcoin was $12.6.
On February 19, 2013, the Bitcoin client V8.0 was released, at which time the price of Bitcoin was $28.66.
On April 10, 2013, BTC hit an all-time high of $110.
On May 9, 2013, the largest Bitcoin reporting website – BTC Chinese website received a $5 million Series A investment from the investment fund Union Square, at which time the price of Bitcoin was $112.09.
On May 17, 2013, the 2013 Bitcoin Conference in San Jose was held, 1,300 people participated, and the price of bitcoin was $119.1 at this time
On May 28, 2013, the US Department of Homeland Security accused xiqian and Operating a money transfer business without a license has banned the virtual currency service of Liberty Reserve, a Costa Rica-based exchange company, in what U.S. prosecutors say will be the largest international lawsuit in history, attracting $6 billion, including China. A large number of users lost their money, and the price of Bitcoin at this time was $128.
In June 2013, it was reported that the United States would withdraw from QE3, deflationary Bitcoin, and quantitative easing monetary policy.
On June 27, 2013, the German meeting made a decision: holding bitcoin for more than one year will be tax-free, which is considered by the industry as a disguised recognition of the legal status of bitcoin. At this time, the price of bitcoin was $102.24.
On June 28, 2013, MTGOX received a certificate from the Financial Crimes Enforcement Network Division of the U.S. Department of the Treasury.Token service transaction licensing, transaction standardization may mean that Bitcoin is starting to go on the right track, government risks are reduced, its integration into the economy will accelerate, and it will serve as a model for other virtual currencies. At this time, the price of Bitcoin is $97.99.
On November 28, 2013, the price of bitcoin on the popular bitcoin exchange Mt. Gox broke through $1,000, hitting an all-time high of $1,073.
On November 29, 2013, the trading price of Bitcoin on the popular exchange Mt.Gox hit a record high of $1,242, while the price of gold was $1,241.98 an ounce, and the price of Bitcoin surpassed gold for the first time.

J. How to get back the account password of Bitcoin

I can’t get it back, just like you, I got dozens of bitcoins when it first came out Bitcoin, at that time there was no idea that this thing was a gimmick, I didn’t expect it to be so valuable now


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