Operation principle of BTC
Publish: 2021-04-17 00:22:45
1. How does bitcoin work? From the perspective of operation, bitcoin is actually a decentralized account book on the Internet
centralized account book (bank)
the bank is a centralized account book, which is stored in the bank's central database, and it says:
Zhang San's a account balance is 3000 yuan, The balance of Li Si's B account is 2000 yuan...
when Zhang San wants to transfer 1000 yuan to Li Si's B account through a account:
Zhang San goes to the bank and submits the transfer request to the bank
the bank confirms Zhang San's identity through bank card password and checks whether Zhang San's a account has enough balance
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
decentralized account book
suppose there is such a small village where people do not rely on the bank, but use the account book to record who has how much money, 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 transfer 1000 yuan to Li Si's B account with a account
the villagers near Zhang San listen to Zhang San's voice and check whether Zhang San's a account has enough balance
after passing the inspection, 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
the villagers near Zhang San tell the distant villagers about the transfer until everyone knows about the transfer, so as to ensure the consistency of everyone's account book
decentralized account book (bitcoin)
bitcoin users run bitcoin client software on the computer, 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
when Zhang San wants to transfer 1 bitcoin to Li Si's B account through a account,
Zhang San broadcast the transfer transaction requirements to the surrounding nodes: a account transfers 1 bitcoin to B account, and signs with the private key of a account
(the private key of account a can be simply understood as the password of account a, and the bitcoin on account a can be used as long as the private key of account a is known)
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
after the check, the node writes to its own account book: account a transfers 1 bitcoin to account B,
and modify the balance: a account balance = 3 bitcoin - 1 bitcoin = 2 bitcoin, B account balance = 2 bitcoin + 1 bitcoin = 3 bitcoin
the node broadcasts the transaction to the surrounding nodes and transmits it to all the nodes until all the nodes receive the transaction
bitcoin's decentralized public ledger 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. We will explain it further in the future.
centralized account book (bank)
the bank is a centralized account book, which is stored in the bank's central database, and it says:
Zhang San's a account balance is 3000 yuan, The balance of Li Si's B account is 2000 yuan...
when Zhang San wants to transfer 1000 yuan to Li Si's B account through a account:
Zhang San goes to the bank and submits the transfer request to the bank
the bank confirms Zhang San's identity through bank card password and checks whether Zhang San's a account has enough balance
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
decentralized account book
suppose there is such a small village where people do not rely on the bank, but use the account book to record who has how much money, 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 transfer 1000 yuan to Li Si's B account with a account
the villagers near Zhang San listen to Zhang San's voice and check whether Zhang San's a account has enough balance
after passing the inspection, 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
the villagers near Zhang San tell the distant villagers about the transfer until everyone knows about the transfer, so as to ensure the consistency of everyone's account book
decentralized account book (bitcoin)
bitcoin users run bitcoin client software on the computer, 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
when Zhang San wants to transfer 1 bitcoin to Li Si's B account through a account,
Zhang San broadcast the transfer transaction requirements to the surrounding nodes: a account transfers 1 bitcoin to B account, and signs with the private key of a account
(the private key of account a can be simply understood as the password of account a, and the bitcoin on account a can be used as long as the private key of account a is known)
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
after the check, the node writes to its own account book: account a transfers 1 bitcoin to account B,
and modify the balance: a account balance = 3 bitcoin - 1 bitcoin = 2 bitcoin, B account balance = 2 bitcoin + 1 bitcoin = 3 bitcoin
the node broadcasts the transaction to the surrounding nodes and transmits it to all the nodes until all the nodes receive the transaction
bitcoin's decentralized public ledger 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. We will explain it further in the future.
2. Bitcoin has no support. As long as someone wants it, bitcoin can be used as a general equivalent and can be used by businesses. It has no value in itself. Bitcoin is not a standard currency. Gold and silver are naturally currencies. It means that gold and silver can be used as a general equivalent and it has value in itself. Bitcoin, in fact, is a credit that supports it, but this credit can be turned into not worth a hair.
3. Bitcoin mining is through the mining node, and then the bitcoin mining machine (computer) constantly consumes its own computing power in exchange for bitcoin. In the bitcoin system, through its own algorithm, it can dynamically adjust the mining difficulty of the nodes in the whole network, and ensure that every 10 minutes, one node will succeed in mining. At this time, the bitcoin system will reward this person with a certain amount of bitcoin. Bitcoin mining is a complicated process, but it usually goes through these steps: preparation, finding the mine pool, registering the mine pool account, setting the mine pool account, downloading the bitcoin miner (software) and configuring the bitcoin miner; After the above steps, you can mine
the content of this article comes from: financial code of the people's Republic of China: application edition, China Law Press
the content of this article comes from: financial code of the people's Republic of China: application edition, China Law Press
4.
Bitcoin mining is a process of using computer hardware to do mathematical calculation for bitcoin network to confirm transactions and improve security
5. Technical team
the butterfly chain technology software team is an engineer team focusing on the research and development of the underlying infrastructure and surrounding tools of filecoin / IPFs
the team members have many years of experience in blockchain and cloud computing research and development. They are not only proficient in the underlying technology of large-scale public chains such as BTC / Ethereum / EOS, but also have accumulated profound experience in the field of large-scale distributed storage. Since 2017, he has participated in preaching IPFs technology stack and gathered a group of engineers who love IPFs protocol. At present, our energy mainly focuses on the contribution of filecoin open source code and the research and development of filecoin mine pool. Two engineers in the team have become the core contributors of go filecoin open source warehouse[ 5]
hosting service
1. International high standard hardware: T4 international standard telecommunication class computer room, seismic grade 8, anti typhoon grade 12, providing a safe operating environment
a total of 2
Inner Mongolia division of butterfly link data center
2. International high standard management: computer room access adopts three-level protection, biometric identification and swipe card access control, closed-circuit television monitoring, Regular inspection of the equipment in the computer room 24 * 7 * 365 security guard
3. Meet diversified needs: high power molar design, personalized customization services
4. High quality bandwidth resources: high quality multi line BGP bandwidth resources, backbone of direct connection operators, loop protection
5. Professional operation system: professional operation and maintenance team, 7 * 24 hours standard operation and maintenance service
6. Customized services: basic operation and maintenance services, visual network management system, active response[ 6]
remote support services
1. Power cycle - manually switch on / off or restart the customer's device to plug in and out the network peripheral card
2. Cables and connections - physically plug cables from ports, install and remove copper / fiber jumpers, and provide cable plug identification
3. Monitoring report provides visual monitoring alarm report of user equipment
4. Equipment installation and management - Equipment unpacking and installation, cable installation, replacement or removal of hot swap and molar equipment
5. Spare parts handling - receive and store new spare parts and replaced faulty spare parts according to the customer's designated area
public facilities
1. Provide sufficient space for equipment installation and commissioning<
butterfly chain technology IDC room
2. Provide Internet access for customer work / conference area
3. Provide 24-hour power, environment, facilities and security monitoring.
the butterfly chain technology software team is an engineer team focusing on the research and development of the underlying infrastructure and surrounding tools of filecoin / IPFs
the team members have many years of experience in blockchain and cloud computing research and development. They are not only proficient in the underlying technology of large-scale public chains such as BTC / Ethereum / EOS, but also have accumulated profound experience in the field of large-scale distributed storage. Since 2017, he has participated in preaching IPFs technology stack and gathered a group of engineers who love IPFs protocol. At present, our energy mainly focuses on the contribution of filecoin open source code and the research and development of filecoin mine pool. Two engineers in the team have become the core contributors of go filecoin open source warehouse[ 5]
hosting service
1. International high standard hardware: T4 international standard telecommunication class computer room, seismic grade 8, anti typhoon grade 12, providing a safe operating environment
a total of 2
Inner Mongolia division of butterfly link data center
2. International high standard management: computer room access adopts three-level protection, biometric identification and swipe card access control, closed-circuit television monitoring, Regular inspection of the equipment in the computer room 24 * 7 * 365 security guard
3. Meet diversified needs: high power molar design, personalized customization services
4. High quality bandwidth resources: high quality multi line BGP bandwidth resources, backbone of direct connection operators, loop protection
5. Professional operation system: professional operation and maintenance team, 7 * 24 hours standard operation and maintenance service
6. Customized services: basic operation and maintenance services, visual network management system, active response[ 6]
remote support services
1. Power cycle - manually switch on / off or restart the customer's device to plug in and out the network peripheral card
2. Cables and connections - physically plug cables from ports, install and remove copper / fiber jumpers, and provide cable plug identification
3. Monitoring report provides visual monitoring alarm report of user equipment
4. Equipment installation and management - Equipment unpacking and installation, cable installation, replacement or removal of hot swap and molar equipment
5. Spare parts handling - receive and store new spare parts and replaced faulty spare parts according to the customer's designated area
public facilities
1. Provide sufficient space for equipment installation and commissioning<
butterfly chain technology IDC room
2. Provide Internet access for customer work / conference area
3. Provide 24-hour power, environment, facilities and security monitoring.
6.
Last week, a paragraph about bitcoin became popular:
bitcoin broke through 5800 US dollars (about 38280 yuan) . When it was issued in 2009, 1 US dollar was equivalent to 1300 bitcoins. What is investment? It has increased by 7.54 million times in 8 years. At that time, you spent 38000 yuan to buy some bitcoin. Now you are the richest man in China, surpassing Xu Jiayin, who has 290 billion yuan
but just one week later, on October 20, bitcoin broke through the $6000 mark. Although it fell later, it reached more than $6000 again on October 21, reaching a maximum of $6147. In terms of $6000, bitcoin prices have risen 7.8 million times in eight years
according to cryptocompare, a bitcoin data provider, e to China's strict supervision of cryptocurrency trading, the global share of bitcoin market has been greatly changed. Now, in the total trading volume of the world's bitcoin exchanges, the trading volume of RMB versus bitcoin accounts for about 1.6%
} the proportion of RMB and yen in global bitcoin trading volume (photo source: cryptocompare)
the reporter noted that in the first half of this year, after Japan's legislation recognized bitcoin as a legal payment method, bitcoin's trading volume in Japan surged, and Japanese regulatory authorities have issued certificates to 11 cryptocurrency exchanges. About 58% of bitcoin trading currently takes place in the Japanese market, and nearly a third of yen to bitcoin trading takes place on the bitflyer exchange in Tokyo. In addition, the U.S. and South Korea markets also account for a large part of global bitcoin transactions - the U.S. dollar and the Korean won account for 27% and 7% of the total bitcoin transactions, respectively< br />
7. Oil futures trading based on blockchain
blockchain is a technology, and the financial procts grafted on it are digital currency, such as bitcoin, lightcoin, Ethereum, etc. To be polite, blockchain oil futures trading should be a gimmick. To be polite, it's a liar.
blockchain is a technology, and the financial procts grafted on it are digital currency, such as bitcoin, lightcoin, Ethereum, etc. To be polite, blockchain oil futures trading should be a gimmick. To be polite, it's a liar.
8. There are mainly two kinds of bitcoin algorithms, which are elliptic curve digital signature algorithm and sha256 hash algorithm
elliptic curve digital signature algorithm is mainly used in the generation process of bitcoin public key and private key, which is the cornerstone of bitcoin system. SHA-256 hash algorithm is mainly used in the workload proof mechanism of bitcoin
the principle of bitcoin generation is the special solution generated by complex operation, and mining is the process of finding the special solution. However, the total number of bitcoin is only 21 million, and with the continuous mining of bitcoin, the more difficult it will be to proce bitcoin, and the cost of acquiring bitcoin may be higher than the price of bitcoin itself
the bitcoin block consists of a block header and the transaction list contained in the block. The size of the block header is 80 bytes, which is composed of 4-byte version number, 32 byte hash value of the previous block, 32 byte Merkle root hash, 4-byte timestamp (current time), 4-byte current difficulty value and 4-byte random number. A block header with a fixed length of 80 bytes is the input string used to prove the workload of bitcoin. Constantly change the random number in the block header, that is, the value of nonce, and do double sha256 operation on the block header after each change, and compare the result value with the target value of the current network. If it is less than the target value, the problem is solved successfully, and the workload is proved to be complete
the essence of bitcoin is actually the unique solution of a set of equations generated by a bunch of complex algorithms. Bitcoin is the first distributed virtual currency in the world, which has no specific distribution center. The network of bitcoin is composed of all users, because there is no center to ensure the security of data.
elliptic curve digital signature algorithm is mainly used in the generation process of bitcoin public key and private key, which is the cornerstone of bitcoin system. SHA-256 hash algorithm is mainly used in the workload proof mechanism of bitcoin
the principle of bitcoin generation is the special solution generated by complex operation, and mining is the process of finding the special solution. However, the total number of bitcoin is only 21 million, and with the continuous mining of bitcoin, the more difficult it will be to proce bitcoin, and the cost of acquiring bitcoin may be higher than the price of bitcoin itself
the bitcoin block consists of a block header and the transaction list contained in the block. The size of the block header is 80 bytes, which is composed of 4-byte version number, 32 byte hash value of the previous block, 32 byte Merkle root hash, 4-byte timestamp (current time), 4-byte current difficulty value and 4-byte random number. A block header with a fixed length of 80 bytes is the input string used to prove the workload of bitcoin. Constantly change the random number in the block header, that is, the value of nonce, and do double sha256 operation on the block header after each change, and compare the result value with the target value of the current network. If it is less than the target value, the problem is solved successfully, and the workload is proved to be complete
the essence of bitcoin is actually the unique solution of a set of equations generated by a bunch of complex algorithms. Bitcoin is the first distributed virtual currency in the world, which has no specific distribution center. The network of bitcoin is composed of all users, because there is no center to ensure the security of data.
9. Working principle of BTC:
BTC toothed clutch is connected by two plane toothed discs moving axially to the inside ring ventilation, and automatically separated by return spring ring pressure relief.
BTC toothed clutch is connected by two plane toothed discs moving axially to the inside ring ventilation, and automatically separated by return spring ring pressure relief.
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