bitcoin
Bitcoin is an electronic currency generated by open source P2P software. Some people translate it as "Bitkin", which is a kind of online virtual currency. Bitcoin is not issued by a specific monetary institution, but is generated by a large number of calculations of a specific algorithm. Bitcoin economy uses a distributed database composed of many nodes in the whole P2P network to confirm and record all transaction behaviors. The decentralized nature of P2P and the algorithm itself can ensure that the currency is not manipulated by people by creating a large number of bitcoins. The design based on cryptography can make bitcoins only be transferred or paid by the real owners. This ensures the anonymity of currency ownership and circulation transactions.
Bitcoin can be cashed and converted into the currencies of most countries. Users can use Bitcoin to buy some virtual items, such as clothes, hats and equipment 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 virtual currencies is that its total amount is very limited and extremely scarce. This monetary system is only 10.5 million in four years, and then the total will be permanently limited to 2 10/0.5 million. The concept of virtual currency bitcoin was first put forward by Satoshi Nakamoto in 2009. Bitcoin is also used to refer to the open source software designed and published by Bitcoin according to Satoshi Nakamoto's idea, and the P2P network built on it. Unlike most currencies, Bitcoin is not dependent on a specific central issuer. It records currency transactions by using distributed databases all over P2P network nodes, and uses cryptography design to ensure the security of each link of currency circulation. For example, bitcoin can only be used by its real owner, and only once, after the payment is completed, the original owner loses ownership of the bitcoin share.
The birth of bitcoin
On June 1 65438+1October12008, a man who claimed to be Satoshi Nakamoto posted a discussion statement on a secret cryptography review group, stating that his new idea of electronic money-Bitcoin came out. 1 year later, the first transaction of Bitcoin was completed.
By revealing and distributing the general ledger, Bitcoin got rid of the constraints of third-party organizations, which Satoshi Nakamoto called "regional chain". Users are willing to dedicate the computing power of CPU and run a special software as a "digger", which will form a network and maintain a "regional chain". In the process, they will also generate new money. Transactions also extend on this network, and computers running this software are scrambling to solve the problem of irreversible passwords, which contain several transaction data. The first "miner" to deal with the problem will receive a reward of 50 bitcoin, and the relevant trading area will join the chain. With the increase of the number of "miners", the difficulty of each puzzle has also increased, keeping the bitcoin productivity of each trading area at around 10 minutes. In addition, every time you reach the area of 265,438+00,000, the reward will be halved, from 50 bitcoin to 25, and then from 25 to 65,438+02.5, and continue. In this way, by 2 140, Bitcoin will reach the reserved limit of 2 1 10,000 pieces.
Satoshi Nakamoto's paper was published in 2008. At that time, the ability of the government and banks to handle the economy was questioned by all parties, and their credibility fell to the bottom. The US government injected a lot of money into Wall Street and Detroit Auto Company, and the Federal Reserve introduced the "quantitative easing" policy. In essence, a large number of printed dollar bills affect the economy and the price of gold rises. Bitcoin doesn't need political and financial guarantees (that is, they will bring down the economy)-it's just based on Satoshi Nakamoto's wonderful algorithm. It seems that the disclosure account book of Bitcoin not only makes fraudsters have nowhere to hide, but also controls the supply of Bitcoin through a certain circulation, ensuring that the central bank that prints money indefinitely and inflation tragedies like Weimar and China will not be staged on Bitcoin.
Characteristics of Bitcoin
Bitcoin is anonymous because it is based on a decentralized system. Bitcoin exists completely independently, and the outside world cannot shut it down through some core infrastructure.
Anonymity is very useful for those who don't want to associate their names with the goods or services they buy. What outsiders see is nothing more than your bitcoin wallet address and a string of random words and numbers, and there is no other information that can identify individuals. For relatively paranoid users, you can also create multiple new wallets for free.
Bitcoin is designed to allow anonymous possession and use. Bitcoin can be stored as a wallet in a personal computer or in a third-party hosting service. No matter what form it is saved, bitcoin can be sent to anyone on the Internet through a bitcoin address. The distributed P2P and the design without central management mechanism ensure that it is impossible for any institution to manipulate the value of Bitcoin or create inflation. Its main features are:
scatter
Bitcoin is the first distributed virtual currency, and the whole network consists of users without a central bank. Decentralization is the guarantee of bitcoin security and freedom.
Global circulation
Bitcoin can be managed on any computer with Internet access. No matter where you are, anyone can mine, buy, sell or collect bitcoin.
Exclusive ownership
Manipulating bitcoin requires a private key, which can be stored in any storage medium in isolation. No one can get it except the users themselves.
Low transaction cost
Bitcoin can be remitted for free, but in the end, a transaction fee of about 1 bit will be charged for each transaction to ensure that the transaction is executed faster.
There is no hidden cost
As a means of payment from A to B, Bitcoin has no complicated quota and procedures. You can pay by knowing the other party's bitcoin address.
Cross-platform mining
Users can explore the computing power of different hardware on many platforms.
Bitcoin acquisition method
First of all, your computer should have the latest version of Bitcoin client installed. After opening the client, all the transaction information data on the network will be automatically downloaded to the local area, which may take several hours depending on the network speed. At this time, the account balance is 0, and users can find friends to send some coins, but it is more feasible to do miners' mining or businessmen's acquisition. [6]
Dig like a miner
Being a miner is to use your own computer to produce bitcoin. The early client had the option of mining, but it has been cancelled. There is a simple reason. With more and more people involved in mining, it may take several years to get 50 gold coins by themselves, so miners are generally organized into miners' associations and everyone digs together. Specific mining methods can be searched online by yourself. This method is already very unrealistic.
Make a commercial acquisition
As a businessman, you can use money to buy coins dug by miners, you can also open an online shop to sell things and collect bitcoin, and you can even go to the exchange to speculate on coins. There are many websites that offer bitcoin exchange services, which can be exchanged into almost any currency. If you really don't know how to change money, you can also come to Lao Duan for help.
The difficulty of bitcoin mining is directly proportional to the amount of money that has been mined. The later, the more difficult it is to mine. After 20 million bitcoins were mined in 2030, the remaining 6,543.8+0,000 bitcoins are likely to take decades to be mined. Moreover, Bitcoin has no central issuer and is generated by network nodes through complex calculations. Anyone can run bitcoin software on a computer to make it. When circulating, enter the number of 1 on the client software, and then go to the other party's bitcoin address and sign it with the payer's password. After that, this bitcoin is the other party's.
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Relevant reference sources are as follows:
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