Bitcoin spider

bitcoin trading platforms include Mt. goxmt, bitstamp, bitcoin China, bitcoin trading network, fire coin network, etc

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

d 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

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 does not rely on a specific monetary institution to issue. It is generated by a large number of calculations based on a specific algorithm

before bitcoin is used, new coins must be generated or mined by the system. The encoding and decoding process of these blocks requires a lot of computing power, and those users who successfully generate new blocks will be rewarded with some bitcoin or part of the transaction cost

in this way, the same process of transferring bitcoin from one user to another creates a demand for more computing power contributed to the bitcoin network on the same basis, thus generating new coins for use

extended information:

the role of bitcoin

bitcoin is just like gold coin in reality: they have value and can be used for trading just like gold coin. You can invest through bitcoin - buy cryptocurrencies and profit from their price fluctuations. Every day there are new places to include bitcoin as a payment method< There is no official price for bitcoin. The price of bitcoin is determined by the price people are willing to pay. The price of bitcoin is usually expressed as the cost of a bitcoin. However, exchanges are generally allowed to buy for any amount, that is, less than one bitcoin. Libertex's price index is a high-quality resource for instant viewing of bitcoin prices

source: Internet bitcoin