How does BTC work
The concept of bitcoin was first proposed by Nakamoto on November 1, 2008, and was officially born on January 3, 2009. According to the idea of Nakamoto, the open source software is designed and released, and the P2P network on it is constructed. Bitcoin is a virtual encrypted digital currency in the form of P2P. Point to point transmission means a decentralized payment system
bitcoin network generates new bitcoin through "mining". In essence, the so-called "mining" is to use computers to solve a complex mathematical problem to ensure the consistency of bitcoin network distributed accounting system. Bitcoin network will automatically adjust the difficulty of mathematical problems, so that the whole network will get a qualified answer about every 10 minutes. Then bitcoin network will generate a certain amount of bitcoin as block reward to reward the person who gets the answer
The remitter will pay bitcoin directly to the other party according to the address of the payee through the computer or smart phone
after the transaction data of bitcoin is packaged into a "data block" or "block", the transaction is initially confirmed. When a block is linked to a previous block, the transaction is further confirmed. After six block confirmations in a row, the transaction was irreversibly confirmed
the bitcoin peer-to-peer network stores all transaction history in the "blockchain". The blockchain continues to extend, and once new blocks are added to the blockchain, they will not be removed. In fact, blockchain is a distributed database composed of a group of scattered client nodes and all participants, which is a record of all bitcoin transaction history
extended data
users can buy bitcoin, and at the same time, they can "mine" bitcoin by using computers to perform a large number of calculations according to the algorithm. When users "mine" bitcoin, they need to use the computer to search for 64 bit numbers, and then compete with other gold miners by repeatedly solving puzzles to provide the required numbers for the bitcoin network. If the user's computer successfully creates a set of numbers, then they will get 25 bitcoins
from 2012 to 2014, bitcoin swept the world, and graally formed the "virtual currency" instry chain represented by bitcoin. This is a change in the financial instry and a new proct of the combination of the financial instry and the Internet. It represents a financial milestone in the new era and marks a new chapter in the history of the Internet. Bitcoin fund is one of the derivative procts represented by bitcoin in the era of "virtual currency"
according to the relevant news reports of Fuhui China, bitcoin fund will be open for operation in the autumn of 2014. Fuhui bitcoin fund, as the world's first operation mode of mutual benefit and win-win with financial management mode, is original and full of temptation and challenge
bitcoin network generates new bitcoin through "mining". In essence, the so-called "mining" is to use computers to solve a complex mathematical problem to ensure the consistency of bitcoin network distributed accounting system.
bitcoin network generates new bitcoin through "mining". In essence, the so-called "mining" is to use computers to solve a complex mathematical problem to ensure the consistency of bitcoin network distributed accounting system. Bitcoin network will
automatically adjust the difficulty of mathematical problems, so that the whole network can get a qualified answer about every 10 minutes. Then bitcoin network will generate a certain amount of bitcoin as a reward to reward the person who gets the answer<
how to get bitcoin
first of all, your computer should have installed the latest version of bitcoin client. After opening the client, it will automatically download all the transaction information data on the network to the local. Depending on the network speed, this process may take several hours. At this time, your account balance is 0, you can ask your friends to send you some coins, but there are two more feasible ways: one is to do miner mining, the other is to do merchant acquisition
to be a miner is to proce bitcoin with one's own computer. In the early days, there was the option of mining in the client, but now it has been cancelled. The reason is very simple. With the increasing number of people participating in mining, it may take several years for one person to dig for 50 coins. So now, miners generally organize miners' guild to dig together. Specific mining methods, you can go online search
as a businessman, you can use money to buy coins g up by miners, you can also set up an online shop to sell things and collect bitcoin, and you can even go to the exchange to speculate in coins. Now there are many websites providing bitcoin exchange services, which can be converted into almost any kind of currency. If you really don't know how to exchange, you can also come to laoan for help<
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bitcoin has become extremely hot on the Internet today. Since the Lushan earthquake in Sichuan this year, one foundation announced to accept donations from bitcoin. In a few days, it received 233 bitcoins, equivalent to nearly 220000 yuan. This is the first non-governmental organization in China to accept the donation of bitcoin, and bitcoin has become a donation in China for the first time, so its popularity has greatly increased, and many netizens are very curious about what bitcoin is
bitcoin, which has been circulating for four years in the circle of computer and network enthusiasts, is graally entering the public life. So, what is bitcoin and why do you pay so much attention to it? Next, this article will tell you.
In terms of operation, bitcoin is actually a decentralized ledger on the Internet
1. Centralized account book (bank)
the bank is a centralized account book, and the account book is stored in the central database of the bank, which reads:
Zhang San's a account balance is 3000 yuan, Li Si's B account balance is 2000 yuan...
when Zhang San wants to transfer 1000 yuan to Li Si's B account through a account number:
a Zhang San goes to the bank, Submit the transfer request to the bank
b the bank confirms Zhang San's identity by means of bank card password, and checks whether Zhang San's a account number has enough balance
C after passing the check, the bank adds a transfer record: account number a transfers 1000 yuan to account number B,
and modifies the balance: account number a balance = 3000-1000 = 2000 yuan, account number B balance = 2000 + 1000 = 3000 yuan
2. Decentralized account book
suppose there is such a small village where the big family does not rely on the bank, but records who has how much money with their own account book, Everyone's account book says:
Zhang San's a account balance is 3000 yuan, Li Si's B account balance is 2000 yuan...
when Zhang San wants to transfer 1000 yuan to Li Si's B account through a account,
Zhang San roars: attention, I use a account to transfer 1000 yuan to Li Si's B account
b villagers near Zhang San listened to Zhang San's voice and checked whether Zhang San's a account had enough balance
C after passing the check, the villagers write on their account books: account a transfers 1000 yuan to account B,
and modify the balance: account a balance = 3000-1000 = 2000 yuan, account B balance = 2000 + 1000 = 3000 yuan
d the villagers near Zhang San tell the distant villagers about the transfer, and pass it on until everyone knows about the transfer, so as to ensure the consistency of everyone's account books
3. Decentralized ledger (bitcoin)
bitcoin users run bitcoin client software on their computers. Such a computer is called a node
a large number of node computers connect with each other to form a peer-to-peer network like spider web
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when Zhang San wants to transfer 1 bitcoin to Li Si's account B through account a, and when Zhang San wants to transfer 1 bitcoin to Li Si's account B through account a,
Zhang San broadcasts transfer transaction requirements to surrounding nodes: account a transfers 1 bitcoin to account B, and signs with the private key of account a
(the private key of account a can be simply understood as the password of account A. as long as you know the private key of account a, you can use the bitcoin on account a)
the nodes around Zhang San check the authenticity of the transaction signature through the public key of account a, and check whether Zhang San's account a has enough balance
C after passing the check, the node writes: account a transfers 1 bitcoin to account B,
and modifies the balance: account a balance = 3 bitcoin - 1 bitcoin = 2 bitcoin, account B balance = 2 bitcoin + 1 bitcoin = 3 bitcoin
Thed node broadcasts the transaction to the surrounding nodes and transmits it to all nodes until all nodes receive the transaction
the decentralized public ledger of bitcoin is called blockchain. This is the simplest description of the operation of bitcoin. Of course, the actual operation of bitcoin is far more complex than this
balance block chain
block chain is a publicly shared transaction record that the whole bitcoin network relies on. All confirmed transactions are included in the block chain without exception. In this way, it will be confirmed that the bitcoin to be spent in the new transaction belongs to the consumer. The integrity and timing of block chain are guaranteed by encryption algorithm
transaction - private key
a transaction is a value exchange between bitcoin addresses that will be included in the block chain. Bitcoin wallet holds a secret data called private key for each bitcoin address. The private key is used to sign the transaction and provide mathematical proof that the bitcoin in the transaction really comes from the owner of the bitcoin address. This signature also avoids the possibility of being modified after the transaction. Transactions spread among users and were confirmed by the bitcoin network in the next few minutes through a process called mining
processing mining
mining is a distributed consensus system that includes the transaction data to be confirmed into the block chain to complete the confirmation of these transactions. By mining, the data in the block chain can be stored in chronological order, the neutrality of bitcoin network can be maintained, and different computers on the bitcoin network are allowed to agree on the system state. To be confirmed, a transaction must be packaged into a block that complies with very strict encryption rules and verified through the bitcoin network. These rules can prevent the modification of existing blocks, because once there is a change, all blocks will be invalid. Mining is as difficult as winning the lottery. No one can easily and continuously add new blocks to the block chain. Therefore, no one can control what content is contained in the block chain or replace part of the content in the block chain to achieve the purpose of rolling back their costs.
1) new transactions broadcast to the whole network
2) each node brings the received transaction information into a block
3) each node tries to find a workload proof with enough difficulty in its own block
4) when a node finds a workload proof, it broadcasts to the whole network
5) if and only if all the transactions contained in the block are valid and have not existed before, other nodes agree with the validity of the block
6) other nodes indicate that they accept the block, and the method of indicating acceptance is to follow the end of the block, create a new block to extend the chain, and regard the random hash value of the accepted block as the random hash value that is faster than the new block
hope to help you.