what is bitcoin

“One” What is the concept of Bitcoin

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

It is generated by a large number of calculations based on a specific algorithm. The Bitcoin economy uses a distributed database composed of many nodes in the entire P2P network to confirm and record all transaction behaviors, and uses cryptographic design to ensure Security in all aspects of currency circulation.

Bitcoin: Also known as “bit gold”, it is a kind of online virtual currency. Netizens can use bitcoin to buy some virtual items, such as clothes, hats, equipment in online games, etc. Used to buy real-world items.

The Bitcoin network generates new bitcoins through “mining”. The so-called “mining” is essentially using a computer to solve a complex mathematical problem to ensure the consistency of the distributed accounting system of the Bitcoin network. The Bitcoin network automatically adjusts the difficulty of math problems so that the entire network gets a qualified answer about every 10 minutes. The Bitcoin network will then generate a new amount of Bitcoin as a bounty to reward those who get the answer.

(1) What does bitcoin mean? Extended reading

Users can buy bitcoin, and at the same time, they can use a computer to perform a large number of operations according to the algorithm to ” Mining” Bitcoin. When a user “mines” bitcoin, they need to use a computer to search for 64-bit numbers, and then compete with other gold diggers by repeatedly solving puzzles to provide the bitcoin network with the required numbers. If the user’s computer successfully creates the a set of numbers.

Bitcoin is electronic cash similar to e-mail, and both parties to the transaction need a “Bitcoin wallet” similar to an e-mail address and a “Bitcoin address” similar to an e-mail address. As with sending and receiving emails, the sender sends bitcoin directly to the recipient’s address via a computer or smartphone. The following table lists some of the sites where you can download bitcoin wallets and addresses for free.

References

Network-Bitcoin

『紴』What is Bitcoin, in layman’s terms

The earliest An online virtual currency. 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.

Extension information:

Bitcoin is electronic cash similar to email, both parties need a “Bitcoin wallet” similar to email address and “Bitcoin address” similar to 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 sites for tech gamers have started accepting bitcoin transactions. Including sites like Mtgox, BTCChina, and some Taobao stores, and even accept bitcoin exchange for US 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.

“Three” What is Bitcoin

Bitcoin is not a real currency, but a digital currency generated through Internet technology. There are 21 million bitcoins in the world. This total number is fixed. Through online transactions, it flows between different owners, and the price of bitcoins will rise or fall with continuous transactions.
Bitcoin has the characteristics of decentralization, globalization, anonymity, etc. It is very simple to trade on a global scale, with low cost and strong liquidity. First, Bitcoin has the characteristics of decentralization
When a user conducts a Bitcoin transaction, the user who sells will transfer the Bitcoin in his account to the buyer, and the buyer’s account will increase the corresponding amount Bitcoin, the entire transaction is done online, and there is no face-to-face delivery. When the bitcoins are transferred, all nodes will know that the transaction between buyers and sellers has occurred, and this data will be saved in each node, which is the decentralization of bitcoin. This is the simplest way to describe the operation of Bitcoin, but the operation of Bitcoin is actually very complex.
Second, Bitcoin has the characteristics of globalization
Bitcoin transactions are all done online, no needTransactions are conducted through offline physical outlets, so bitcoin transactions are not restricted by national borders. As long as the bitcoin trading platform is used, bitcoin transactions can be realized all over the world. Third, Bitcoin has the characteristics of anonymity
Bitcoin transactions are purely online, and buyers and sellers do not need real-name authentication during the transaction process, as long as they log in to the Bitcoin trading website, they can trade Bitcoin , so Bitcoin transactions are characterized by anonymity.
It is also the anonymous feature of Bitcoin. Many people transfer their wealth to Bitcoin. Because Bitcoin does not have the characteristics of real name, it is impossible for everyone to verify who Bitcoin ultimately belongs to. The above is my relevant experience and hope it can help you.

『4』What is Bitcoin

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

In a nutshell, Bitcoin is based on a set of cryptographic codes and is generated through complex algorithms. This rule is not interfered by any individual or organization, and it is decentralized; anyone can download and run Bitcoin clients Participate in the manufacture of bitcoins; bitcoins use electronic signatures to achieve circulation, and verify repeated consumption through the P2P distributed network. The generation and consumption of each bitcoin will be recorded and notified to the entire network through the P2P distributed network, and there is no possibility of forgery.

Bitcoin is not issued by a specific monetary institution. It is generated by a large amount of calculation of a specific algorithm. The Bitcoin economy uses a distributed database composed of many nodes in the entire P2P network to confirm and record all transaction behaviors. The decentralized nature of P2P and the algorithm itself can ensure that the currency value cannot be artificially manipulated by mass-producing bitcoins. The cryptography-based design allows bitcoins to be transferred or paid only by the real owner. This ensures the anonymity of currency ownership and circulation transactions.

Bitcoins can be cashed out and can be exchanged into the currencies of most countries. 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.

The biggest difference between Bitcoin and other virtual currencies is that its total number is very limited and it has a strong scarcity. The currency system used to have no more than 10.5 million for 4 years, after which the total number will be permanently capped at 21 million.

The concept of Bitcoin (BitCoin) was originally proposed by Satoshi Nakamoto in 2009. According to Nakamoto’s ideas, the open source software was designed and released and the P2P network built on it.

Bitcoins are anonymous because they are built on a decentralized system. Bitcoins exist completely independently, and the outside world cannot shut it down through some kind of core infrastructure.

“Anonymity” is great for people who don’t want to associate their name with the goods or services they buy, all outsiders see is your bitcoin wallet address and a string of random letters and numbers, without any personally identifiable information. For relatively paranoid users, multiple new wallets can also be created for free.

Bitcoins are designed to allow anonymous ownership and usage rights. Bitcoins can be stored either as a computer file (wallet) on a personal computer or in a third-party escrow service. Regardless of how they are stored, bitcoins can be sent to anyone on the Internet through a bitcoin address. The distributed nature of P2P and the design without a central management mechanism ensure that it is impossible for any institution to manipulate the value of Bitcoin or create inflation.

The main features are:

1. Decentralization
Bitcoin is the first distributed virtual currency, the entire network is composed of users, there is no central Bank. Decentralization is the guarantee of Bitcoin’s security and freedom.

2. Circulation around the world
Bitcoin can be managed on any computer connected to the Internet. Anyone can mine, buy, sell or receive bitcoin, no matter where they are.

3. Exclusive ownership
Manipulating Bitcoin requires a private key, which can be isolated and stored in any storage medium. No one can get it except the user himself.

4. Low transaction fees
You can remit bitcoins for free, but in the end, a transaction fee of about 1 bit will be charged for each transaction to ensure faster execution of the transaction.

5. No hidden costs
As a means of payment from A to B, Bitcoin does not have cumbersome quotas and procedures. You can pay by knowing the bitcoin address of the other party.

6. Cross-platform mining
Users can explore different hardware on many platforms.computing power.

Hope to adopt

“Wu” What is the popular explanation of Bitcoin

The term of Bitcoin is “a virtual encrypted digital currency in the form of P2P, Peer-to-peer transmission means a decentralized payment system.” If you don’t understand blockchain technology, you can’t understand bitcoin. If you don’t understand blockchain, you can read my previous article, “Blockchain” What is a chain? How to explain it in layman’s terms? After reading these three points, you will understand! Learn about Bitcoin through a short story below.
If there is such an environment, everyone in the unit has a public ledger, which records the details of each fund in the unit in detail. If Xiao Wang reimburses the cost of 200 yuan, the ledger in each person’s hand will be automatically There is a record that Xiao Wang spent 200 yuan on a business trip. In this case, there is no possibility of false accounts, because the information is transparent, and it is impossible to manipulate it. But one day the ledger in everyone’s hands becomes a software. The software not only has the function of accounting, but also this software can be used for transfer payment. The virtual currency paid in this environment is called bitcoin. This is the simplest explanation of Bitcoin. In order to make it easier for everyone to understand, it is not rigorous in some places. The real Bitcoin technology is much more complicated.

Extension information:

Bitcoin features
1. Non-repeatability
For example, if you only have 1 bitcoin, you pay someone else 1 bitcoin, if you are trying to pay other People 1 bitcoin will fail, because when you pay, the surrounding nodes will check that you actually have no bitcoins and reject you for this illegal payment. This non-replicability has the property of currency, but it can solve the problem of counterfeit currency in real life. Unlike real currency, bitcoin is all about banks, while bitcoin is no center for peer-to-peer transactions.
2. Security
The above is a vivid illustration of the biggest feature of Bitcoin that is different from traditional currencies through the analogy of the bookkeeping book. Bitcoin is not controlled by anyone or any organization, and the data is complete and independent on multiple devices. , the security is more guaranteed.
3. Uniqueness
The uniqueness of Bitcoin is that it is a virtual currency, although only a small part of the work now recognizes that Bitcoin is a currency that can be used for payment, although it may not be a real currency now, but there is no doubt that Bitcoin Coin is the first digital currency that has changed the world.

『Lu』 What is Bitcoin

Bitcoin (Bitcoin, abbreviated BTC) is a digital currency with a constant total amount of 21 million, just like the Internet It has the characteristics of decentralization, globalization, and anonymity. Sending bitcoins to the other side of the world is as easy as sending an email, low cost and with no restrictions. Bitcoin is therefore used for cross-border trade, payments, remittances, and more.
Because of the broad prospects and huge space for reverie, the price of Bitcoin has continued to rise since its birth in 2009. In 2011, the price reached 1 USD, and in 2013, it reached a maximum of 1,200 USD, exceeding the price of 1 ounce of gold. ” (currently around $450).
Bitcoin began in 2008 with the paper “Bitcoin: A Peer-to-Peer Electronic Cash System (Chinese Version)” by the mysterious figure Satoshi Nakamoto. In the six years since its birth, Bitcoin, as an unprecedented new currency, has experienced countless market tests and technical attacks, and has always stood firm. Now Bitcoin has grown into a currency system with millions of users around the world, tens of thousands of merchants accepting payments, and a market value of up to 10 billion US dollars.

『柒』What is Bitcoin

™(BitCoin) is a form of P2P
.
Transfer means a decentralized
.
It is not issued by a specific currency institution, it is generated by a large amount of calculation of a specific algorithm, and the Bitcoin economy uses the entire P2P network composed of many nodes to confirm and record all transaction behaviors. The decentralized nature of P2P and the algorithm itself can ensure that the value of the currency cannot be artificially manipulated by mass-producing Bitcoin. The
-based design allows bitcoins to be transferred or paid only by the real owner. This also ensures the anonymity of currency ownership and circulation transactions.
Bitcoin is a network
, similar to Tencent’s Q coin, you can use bitcoin to buy some virtual items, such as clothes, hats, equipment, etc. in online games, as long as someone accepts it, You can also use bitcoin to buy real-life items.
The biggest difference between Bitcoin and other
is that its total amount is very limited and has a strong scarcity. The currency system will only have no more than 10.5 million in the first 4 years, after which the total number will be permanently limited to 21 million. Another point is that you can produce bitcoins with a computer.
Details
Bitcoin is a�� Produced by the open source P2P

. Some people paraphrase bitcoin as “bit gold”. The concept of virtual currency Bitcoin (BitCoin) was originally proposed by Satoshi Nakamoto in 2009, and now Bitcoin is also used to refer to the open source software designed and released by Bitcoin according to the ideas of Satoshi Nakamoto and the P2P network built on it. Unlike most currencies, Bitcoin does not rely on a specific central issuer, but uses
throughout P2P
to record currency transactions, and uses the design of
to ensure Security in all aspects of currency circulation. For example, Bitcoin can only be used by its true owner, and only once, after the payment is completed, the original owner loses ownership of the share of Bitcoin.
Features
Bitcoin is designed to allow anonymous ownership and usage rights, bitcoin can be stored as a computer file (wallet) on a personal computer, or stored in a service
. Regardless of how they are stored, bitcoins can be sent to anyone on the Internet through a bitcoin address. The distributed nature of P2P and the absence of a central design ensure that it is impossible for any institution to manipulate the value of Bitcoin or create inflation.

Want to adopt, thank you

™(BitCoin) is a form of P2P
.
Transfer means a decentralized
.
It is not issued by a specific currency institution, it is generated by a large amount of calculation of a specific algorithm, and the Bitcoin economy uses the entire P2P network composed of many nodes to confirm and record all transaction behaviors. The decentralized nature of P2P and the algorithm itself can ensure that the value of the currency cannot be artificially manipulated by mass-producing Bitcoin. The
-based design allows bitcoins to be transferred or paid only by the real owner. This also ensures the anonymity of currency ownership and circulation transactions.
Bitcoin is a network
, similar to Tencent’s Q coin, you can use bitcoin to buy some virtual items, such as clothes, hats, equipment, etc. in online games, as long as someone accepts it, You can also use bitcoin to buy real-life items.
The biggest difference between Bitcoin and other
is that its total amount is very limited and has a strong scarcity. The currency system will only have no more than 10.5 million in the first 4 years, after which the total number will be permanently limited to 21 million. Another point is that you can produce bitcoins with a computer.
Detailed introduction
Bitcoin (Bitcoin) is an open source P2P
generated
. Some people paraphrase bitcoin as “bit gold”. The concept of virtual currency Bitcoin (BitCoin) was originally proposed by Satoshi Nakamoto in 2009, and now Bitcoin is also used to refer to the open source software designed and released by Bitcoin according to the ideas of Satoshi Nakamoto and the P2P network built on it. Unlike most currencies, Bitcoin does not rely on a specific central issuer, but uses
throughout P2P
to record currency transactions, and uses the design of
to ensure Security in all aspects of currency circulation. For example, Bitcoin can only be used by its true owner, and only once, after the payment is completed, the original owner loses ownership of the share of Bitcoin.
Features
Bitcoin is designed to allow anonymous ownership and usage rights, bitcoin can be stored as a computer file (wallet) on a personal computer, or stored in a service
. Regardless of how they are stored, bitcoins can be sent to anyone on the Internet through a bitcoin address. The distributed nature of P2P and the absence of a central design ensure that it is impossible for any institution to manipulate the value of Bitcoin or create inflation.

『渌』What Bitcoin is like

Treat a new thing, there are only two results, accept or reject. There are only two endings to this new thing, to be accepted or rejected. The whole process is iterative and tortuous. Bitcoin is like this now. People who eat melons accept or reject it, and the state also supports and rejects it. But in the end, its ending depends on this repeated process to converge, the tug of war in all aspects, the struggle in all aspects, if it survives, then it is real gold, if it is eliminated, then it is a false proposition . I can’t really see how it ends yet.

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