BITCOIN TRUSTED | vibesoundtz.blogspot.com
Speaking from the essence of Bitcoin
The essence of special currency is actually a pile of complex algorithms generated by the special solution. Special solution is a group of equations that can get an infinite number (in fact, the bit currency is finite). And each solution can solve the equation and is unique. [10] to the metaphor of the yuan, the bit currency is the serial number of the renminbi, you know the serial number on a banknote, you have this money. The process of mining is through a large amount of calculation to continue to seek the special solution of this equation, the equations were designed to only 21 million special solution, so the upper limit of the bit is 21 million.
To dig a bit currency can download a dedicated bit coin calculation tool, and then register a variety of cooperative sites, the registered user name and password to fill in the calculation process, and then click on the operation began. [11] After the completion of Bitcoin client installation, you can directly get a Bitcoin address, when others pay, only need to put their own address to others, you can through the same client to pay. After installing the Bitcoin client, it will allocate a private key and a public key. You need to back up your wallet data that contains a private key to ensure that the property is not lost. If you are unfortunately formatting the hard drive completely, the individual bitcoin will be completely lost.
Currency characteristics
Centered: Bitcoin is the first distributed virtual currency, the entire network consists of users, no central bank. To the center is the guarantee of the security and freedom of Bitcoin.
Circulation in the world: Bitcoin can be managed on any computer connected to the Internet. No matter where you are, anyone can dig, buy, sell or collect Bitcoin.
Exclusive Ownership: Controlling the bitcores requires a private key, which can be quarantined on any storage medium. No one but the user can get it.
Low transaction costs: Free remittance of special currency, but eventually for each transaction will receive about 1 bit of the transaction fee to ensure faster transactions.
No hidden costs: As a means of payment from A to B, Bitcoin has no cumbersome amount and procedure restrictions. Know that the other side of the currency address can be paid.
Cross-platform mining: users can explore the computing power of different hardware on many platforms.
advantage
Completely decentralized, no issuer, it is impossible to manipulate the number of issued. Its distribution and circulation, through the open source p2p algorithm to achieve.
Anonymous, tax free, exempt.
Robustness. Bit coins are completely dependent on the p2p network, no distribution center, so the outside can not close it. Bitcoin prices may fluctuate, crash, multinational government may announce it illegal, but Bitcoin and Bitcoin huge p2p network will not disappear.
Borderless, cross border. Transnational remittances will go through layers of foreign exchange control agencies, and transaction records will be recorded in multiple cases. But if the bit currency transactions, direct input digital address, click the mouse, wait for p2p network to confirm the transaction, a lot of money on the past. Do not go through any regulatory agencies, will not leave any cross-border transactions.
Cottage is difficult to survive. As the bitmap algorithm is completely open source, who can download to the source code, modify some parameters, re-compile, you can create a new p2p currency. But these cottage currency is very fragile, vulnerable to 51% attack. Any individual or organization, as long as the control of a p2p currency network 51% of the computing power, you can manipulate the transaction, currency, which will p2p currency constitute a devastating blow. A lot of cottage, is dead in this link. While the Bitcoin network is already robust enough to control 51% of the computing power of the Bitcoin network, and the number of cpu / gpu needed will be an astronomical number.
Disadvantages
Trading platform vulnerability. Bitcoin network is very robust, but the bit currency trading platform is very fragile. The trading platform is usually a website, and the site will be hacked, or subject to the closure of the competent authorities.
Transaction confirmation time is long. Bit currency wallet when the initial installation, will consume a lot of time to download the historical transaction data block. The bit currency transactions, in order to confirm the accuracy of the data, will consume some time, and p2p network to interact, get the whole network to confirm, the transaction was completed.
Price fluctuates greatly. As a large number of speculators involved, resulting in the price of special currency exchange cash, such as roller coaster general ups and downs. Making Bitcoels more suitable for speculation than an anonymous deal.
The public does not understand the principles, as well as the traditional financial practitioners boycott. Active netizens understand the principle of p2p network, know that Bitcoin can not maneuver and control. But the public does not understand that many people can not even distinguish between bit currency and Q currency difference. "No issuer" is the advantage of Bitcoin, but in the traditional financial practitioners view, "no issuer" currency worthless.
Currency trading
Purchase method
Users can buy Bitcoin, but also can use the computer in accordance with the algorithm for a large number of operations to "mining" bit currency. When users "exploit" bitcoins, they need to search for 64-bit numbers on their computers, and then compete with other gold players by repeatedly puzzle to provide the required numbers for the Bitcoin network. If the user's computer succeeds in creating A set of numbers, then it will get 25 bit currency.
As the bitcover system uses decentralized programming, so every 10 minutes can only get 25 bit currency, and by 2140, the circulation of the bit cap will reach 21 million. In other words, the bitcover system is able to achieve self-sufficiency, by coding to resist inflation, and to prevent others from damaging the code.
means of transaction
Bitcoin is an e-mail-like e-cash that requires a "bit currency" and "e-mail address" similar to e-mail. And send and receive e-mail, the remitter through the computer or smart phone, according to the recipient address will be directly to the other side of the currency. The following table lists some of the sites that download free coin wallet and address.
Bitcoin address is about 33 long, composed of letters and numbers of a string of characters, always from 1 or 3 at the beginning, such as "1DwunA9otZZQyhkVvkLJ8DV1tuSwMF7r3v". Bit coin software can automatically generate the address, generate the address does not need to exchange information, you can go offline [2]. More than 2 bitmaps are available. It is said that there are about two grains of sand in the world, and if there is one earth in each grain, the total number of bits is much higher than the total number of sand on all these "earths".
Bitcoin addresses and private keys appear in pairs, and their relationship is like a bank card number and password. Bitcoin addresses are used like bank cards to record how many bits of money you have at that address. You can randomly generate Bitcoin address to store Bitcoin. Each bit currency address is generated, there will be a corresponding address of the private key is generated. This private key can prove that you have ownership of the bit currency on that address. We can simply understand the bit currency address as a bank card number, the address of the private key to understand the corresponding bank card number of the password. You can only use the money on the bank card number if you know the bank password. So save your address and private key when using a bit currency wallet.
Bit of the transaction data is packaged into a "data block" or "block" (block), the transaction even if the initial confirmation. When the block is linked to the previous block, the trade is further confirmed. After the six blocks were confirmed, the deal was basically irreversibly confirmed. The peer-to-peer network stores all transaction history in a "blockchain". The block chains are continually extended and the new blocks are no longer removed once they are added to the chain. A block chain is actually a group of distributed client nodes, and a distributed database of all participants is a record of all bitmember transactions. Zhong Ben Cong expected that when the amount of data increased, the client hopes that these data are not all stored in their own nodes. In order to achieve this goal, he used the introduction of hash function mechanism. So that the client will be able to automatically remove those who never use their own part, for example, very early some bit currency transactions.
Consumption patterns
Many sites for technology players have already begun to accept bit currency transactions. Including Mtgox, BTCChina like the site, as well as some stores Taobao, and even accept the bit currency exchange dollars, the euro and other services. There is no doubt that Bitcoin has become the real currency of circulation, rather than Tencent Q coins as a virtual currency. Foreign has a special third-party payment company, similar to the domestic Alipay, can provide API interface services.
You can use money to buy bits of coins, but also when the miners, "mining" they use the computer to search for 64-bit numbers on the line. By repeatedly decrypting with a computer, compete with other gold diggers to provide the required number for the Bitcoin network. If the computer can successfully create a set of numbers, it will get 25 bit currency. Bitcores are decentralized and need to create a fixed number of bitcores in each unit of calculated time to get 25 bits per 10 minutes. By 2140, the circulation of special currency limit will reach 21 million. In other words, the bitbell system can be self-sufficient, translated into a code to resist inflation, to prevent others to engage in damage.
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