How to prove bitcoin

1. At present, the main transaction modes in bitcoin market are as follows:
1. Legal currency transaction: that is to buy, sell or trade digital assets through legal currency. For example: bitcoin now quote 6 in case, then whether it is credit card or Alipay WeChat, anyway, buying money directly is the legal tender transaction.
2. Currency currency transaction: mainly for transactions between virtual currency and virtual currency, one of which is used as the pricing unit to purchase other currencies. Its trading rules are also based on price priority and time priority
3. Leverage Trading: it is to invest several times of the original amount with small amount of funds. In order to obtain the relative investment object volatility multiple yield, or loss. As the increase or decrease of margin does not move in proportion to the fluctuation of underlying assets, the risk is very high
4. Contract trading: contract trading is the general term for the futures contract trading of the 796 exchange in comparison with the special currency. In June 2013, 796 exchange took the lead in developing bitcoin weekly delivery standard Futures - t + 0 two-way trading virtual commodity barter contract (contract trading) in bitcoin instry

warm tips:
1. The above explanations are for reference only, without any suggestions
2. Before investing, it is recommended that you first understand the risks existing in the project, and clearly understand the investors, investment institutions, chain activity and other information of the project, rather than blindly investing or mistakenly entering the capital market. Investment is risky, so we should be cautious when entering the market
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2. Bitcoin receives payments almost instantaneously. However, there is an average delay of 10 minutes before the network starts adding your transaction to a block to confirm the transaction and that you can use the received bitcoin. Confirmation means that there is a consensus on the Internet that the bitcoin you receive is not used to pay others, so it is recognized as your property. Once your transaction is included in one block, all subsequent blocks will include it, which will greatly consolidate this consensus and rece the risk of transaction cancellation. Each user can determine the time when the transaction is confirmed, but generally speaking, receiving six confirmations is as safe as waiting six months after a credit card transaction
anyone can become a bitcoin miner by running software on specialized hardware. mining software monitors transaction broadcast through P2P network and performs appropriate tasks to process and confirm these transactions. Bitcoin miners can earn transaction fees paid by users to speed up transaction processing and additional bitcoin issued according to fixed formula

new transactions need to be included in a block with mathematical workload proof before they can be confirmed. This kind of proof is hard to generate because it can only be generated by trying billions of calculations per second. Miners need to run these calculations before their blocks are accepted and rewarded. As more people start mining, the difficulty of finding effective blocks will be automatically increased by the network to ensure that the average time to find a block remains at 10 minutes. Therefore, the competition for mining is very fierce, and no indivial miner can control the content contained in the block chain
workload proof is also designed to rely on previous blocks, which forces the time sequence of block chain. This design makes it extremely difficult to cancel previous transactions, because the workload proof of all subsequent blocks needs to be recalculated. When two blocks are found at the same time, the miner will process the first block received, and once the next block is found, it will be transferred to the longest block chain. This ensures that the mining process maintains a global consistency based on processing capacity
bitcoin miners can neither increase their rewards by cheating, nor deal with the fraulent transactions that destroy the bitcoin network, because all bitcoin nodes will reject the blocks containing invalid data that violate the bitcoin protocol rules. Therefore, even if not all bitcoin miners can be trusted, the bitcoin network is still secure
if you still don't understand, go to bitcoin home to see the deeper understanding of netizens.

3.

Transaction mode of bitcoin

bitcoin is e-cash similar to e-mail, and both parties need "bitcoin wallet" similar to e-mail and "bitcoin address" similar to e-mail address. Just like sending and receiving e-mail, the remitter pays bitcoin directly to the other party through a computer or smart phone according to the recipient's address. The following table lists some websites that download bitcoin wallets and addresses for free

a bitcoin address is a string of about 33 characters long, consisting of letters and numbers, always starting with 1 or 3, such as & quot& quot; Bitcoin software can generate address automatically, and it doesn't need to exchange information online, so it can be offline. More than 2 bitcoin addresses are available. Figuratively speaking, there are about two grains of sand in the world. If there is an earth in each grain of sand, then the total number of bitcoin addresses far exceeds the number of all the sand on all these "earths"

the bitcoin address and private key appear in pairs, and their relationship is just like the bank card number and password. A bitcoin address is like a bank card number, which records how much bitcoin you have on it. You can generate bitcoin address at will to store bitcoin. When each bitcoin address is generated, a corresponding private key of the address will be generated. This private key proves that you have ownership of the bitcoin at that address. We can simply understand the bitcoin address as the bank card number, and the private key of the address as the password of the corresponding bank card number. Only when you know the bank password can you use the money on the bank card number. Therefore, please keep your address and private key when using bitcoin wallet

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. Bitcoin P2P stores all transaction history in a "blockchain.". The blockchain continues to extend, and once new blocks are added to the blockchain, they will not be removed. Blockchain is actually a distributed database composed of a group of scattered client nodes and all participants, which is a record of all bitcoin transaction history. Nakamoto predicts that when the amount of data increases, users hope that not all the data will be stored in their own nodes. In order to achieve this goal, he uses the hash function mechanism. In this way, the client will be able to automatically eliminate those parts that it will never use, such as some very early bitcoin transactions

4. The client does not need to know the real random number. The client (also the system) actually wants the hash value of the "random number" to be less than a certain value
for example, the value of sha256 of 041665464 (random number) is: (hexadecimal) 0ffffffff... (if)
it does not meet the requirement of less than 00ffffff, so it is not a block
the value of sha256 of 041665465 (random number) is: (hexadecimal) 000ffffff... (if)
it meets the requirement of less than 00ffffff, so it is a block

in fact, it is very difficult to find a random number less than a hash value, which is the principle of workload proof
the value to be less than (00ffff...) is variable (difficulty), which varies with time and computing power.

5. Proof of work (POW) is a proof to confirm that you have done a certain amount of work. The whole process of monitoring work is usually extremely inefficient, and it is a very efficient way to prove that the corresponding workload has been completed through the certification of the work results. For example, in real life, graation certificate, driver's license and so on, are also obtained through the way of test results (through the relevant examination).

6. It is not easy to prove that there is no direct supervision on the mine at present
if the operation is proper, the mining company you invest in will continue to operate, and you may get the expected income
if the operation is improper, the mining company you invest in will go bankrupt or encounter other problems, and your investment will be more dangerous

so be cautious in mining, and there are more pits