I. Bitcoin (cryptocurrency)

The concept of Bitcoin was first put forward by Satoshi Nakamoto on June 5438+065438+ 10/day, 2008, and was officially born on June 5438+1 0/3, 2009.

According to Satoshi Nakamoto's idea, open source software is designed and published, and a P2P network is built on this basis. Bitcoin is a virtual encrypted digital currency in the form of P2P. Point-to-point transmission means a decentralized payment system.

Unlike all currencies, bitcoin is not issued by a specific monetary institution, but is generated by a large number of calculations according to a specific algorithm. Bitcoin economy uses the distributed database composed of many nodes in the whole P2P network to confirm and record all transaction behaviors, and uses cryptography design to ensure the security of all links in currency circulation. The decentralized nature of P2P and the algorithm itself can ensure that the currency can not be manipulated artificially and create a large number of bitcoins. The design based on cryptography can make bitcoin only transferred or paid by the real owner. This also ensures the anonymity of currency ownership and circulation transactions. The biggest difference between Bitcoin and other virtual currencies is that its total amount is very limited and scarce.

Second, the principle of production

Bitcoin is automatically generated by the system as a reward for miners to complete the distribution process. Miners play the role of currency issuers here, and their process of obtaining bitcoin is also called "mining". All bitcoin transactions need to be mined by miners and recorded in this ledger. Miners' mining is actually to calculate the hash value that meets the requirements through a series of algorithms, thus winning the right to keep accounts. This process is actually a process of trial and error. The more random hash conflicts a computer generates every second, the greater the probability of calculating the correct hash value first. The miners who calculate the correct value first can package the bitcoin transaction into blocks and then record it in the whole blockchain, thus obtaining the corresponding bitcoin reward.

In China, the Regulations on the Administration of Renminbi stipulates that the manufacture and sale of token tickets are prohibited. Because there is no clear judicial interpretation of the definition of token, if Bitcoin is included in the token, the legal prospect of Bitcoin in China will be uncertain.