What is bitcoin's equation
The earliest is a kind of network virtual currency. It is characterized by decentralization, anonymity, and can only be used in the digital world. It does not belong to any country or financial institution, and is not subject to geographical restrictions. It can be exchanged anywhere in the world. Therefore, it is used as a money laundering tool by some criminals. In 2013, the U.S. government recognized the legal status of bitcoin, making the price of bitcoin soar
< H2 > extended information:bitcoin is e-cash similar to e-mail. 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
starting from the essence of bitcoin, the essence of bitcoin is actually a special solution generated by a bunch of complex algorithms. A special solution is one of the infinite (in fact, bitcoin is finite) solutions that can be obtained from the equations. Every particular solution can solve the equation and is unique
many websites for technology players have begun to accept bitcoin transactions. Websites such as mtgox and btcchina, as well as some Taobao stores, can even accept services such as bitcoin exchange for us dollars and euro. There is no doubt that bitcoin has become a real currency in circulation, rather than a virtual currency like Tencent Q coin
starting from the essence of bitcoin, the essence of bitcoin is actually a special solution generated by a bunch of complex algorithms. A special solution is one of the finite solutions of a system of equations. Every particular solution can solve the equation and is unique. In the metaphor of banknotes, bitcoin is the number of the top word of a banknote. If you know the number of the top word on a banknote, you have the banknote. The process of mining is to constantly seek the special solution of the equation system through huge amount of calculation. The equation system is designed to have only 21 million special solutions, so the upper limit of bitcoin is 21 million
to mine bitcoin, you can download the special bitcoin computing tools, register various cooperation websites, fill the registered user name and password into the computing program, and then click the operation to officially start. After completing the installation of bitcoin client, you can directly obtain a bitcoin address. When others pay, you only need to paste the address to others, and you can pay through the same client. After installing the bitcoin client, it will assign a private key and a public key. You need to back up the wallet data containing your private key to ensure that your property is not lost. Unfortunately, if the hard disk is completely formatted, personal bitcoin will be completely lost<
currency features
Decentralization: bitcoin is the first distributed virtual currency, and the whole network is composed of users without a central bank. Decentralization is the guarantee of bitcoin's security and freedom
Global Circulation: bitcoin can be managed on any computer connected to the Internet. No matter where you are, anyone can dig, buy, sell or collect bitcoin
exclusive ownership: private key is required to manipulate bitcoin, which can be stored in any storage medium in isolation. No one can get it except the user himself
low transaction cost: bitcoin can be remitted free of charge, but a transaction fee of about 1 bitfen will be charged for each transaction to ensure faster transaction execution
no hidden cost: as a means of payment from a to B, bitcoin has no cumbersome quota and proceres. If you know the other party's bitcoin address, you can pay
cross platform Mining: users can explore the computing power of different hardware on many platforms
advantages
completely decentralized, without issuing institutions, it is impossible to manipulate the number of issues. Its distribution and circulation are realized through open-source P2P algorithm
anonymity, tax exemption and supervision free
robustness. Bitcoin is completely dependent on P2P network and has no distribution center, so it cannot be shut down externally. Bitcoin price may fluctuate and collapse, and many governments may declare it illegal, but bitcoin and its huge P2P network will not disappear
cross border. Cross border remittance will go through layers of exchange control agencies, and the transaction records will be recorded by many parties. But if you trade with bitcoin, enter the digital address directly, click the mouse and wait for the P2P network to confirm the transaction, a lot of money will pass. It does not go through any regulatory agencies and will not leave any cross-border transaction records
it is difficult for the cat to survive. Because bitcoin algorithm is completely open source, anyone can download the source code, modify some parameters, recompile, and create a new P2P currency. But these counterfeit currencies are fragile and vulnerable to 51% attacks. Any indivial or organization, as long as it controls 51% of the computing power of a P2P currency network, can manipulate transactions and currency value at will, which will be a devastating blow to P2P currency. Many Shanzhai coins die in this link. The bitcoin network is robust enough. If you want to control 51% of the computing power of the bitcoin network, the number of CPUs / GPUs required will be astronomical
disadvantages
the vulnerability of trading platform. The bitcoin network is robust, but the bitcoin trading platform is fragile. Trading platform is usually a website, which will be attacked by hackers or shut down by competent authorities
transaction confirmation takes a long time. When bitcoin wallet is first installed, it will consume a lot of time to download historical transaction data blocks. While bitcoin transaction, in order to confirm the accuracy of data, it will take some time to interact with P2P network, and the transaction will be completed only after the whole network is confirmed
the price fluctuates greatly. Due to the intervention of a large number of speculators, the price of bitcoin for cash fluctuates like a roller coaster. Making bitcoin more suitable for speculation rather than anonymous trading
the public did not understand the principle, and the traditional financial practitioners resisted. Active netizens understand the principle of P2P network and know that bitcoin has no legal person to manipulate and control. But the public doesn't understand, and many people can't even tell the difference between bitcoin and q-coin“ "No issuer" is the advantage of bitcoin, but in the view of traditional financial practitioners, "no issuer" currency is worthless.
1. Bitcoin:
also known as "bitcoin", is a kind of network virtual currency. Internet users can use bitcoin to buy some virtual goods, such as clothes, hats and equipment in online games. Internet users can also use bitcoin to buy real goods
2. The origin of bitcoin: the concept of bitcoin was first proposed by Nakamoto in 2009. According to Nakamoto's idea, the open source software was designed and released, and the P2P network on it was constructed. Bitcoin is a kind of P2P digital currency. Point to point transmission means a decentralized payment system
unlike most currencies, bitcoin does not rely on specific currency institutions. It is generated by a large number of calculations based on specific algorithms. Bitcoin economy uses the distributed database composed of many nodes in the whole P2P network to confirm and record all transactions, and uses the design of cryptography to ensure the security of all aspects of currency circulation
extended data :
the generation principle of bitcoin:
starting from the essence of bitcoin, the essence of bitcoin is actually the special solution generated by a bunch of complex algorithms. A special solution is one of the infinite (in fact, bitcoin is finite) solutions that can be obtained from the equations. Every particular solution can solve the equation and is unique
compared with RMB, bitcoin is the serial number of RMB. If you know the serial number of a note, you will have the note. The process of mining is to constantly seek the special solution of this equation system through a huge amount of calculation. This equation system is designed to have only 21 million special solutions, so the upper limit of bitcoin is 21 million
1. Mining can not only proce bitcoin, but also guarantee transaction information
similarly, a mathematical system contains 21 million mathematical problems, so we need to constantly seek the special solution of each mathematical problem through a huge amount of calculation. In addition, the special solution is unique
mining can not only increase the supply of bitcoin money, but also protect the security of bitcoin transactions and prevent fraulent transactions. In terms of process, bitcoin network is a point-to-point payment system, and anyone can trade through the transaction program
in order to ensure that the transaction process is truthfully recorded, the role of "miner" is required to be responsible for recording bitcoin transaction information. The time interval is 10 minutes. The best recorded transaction records among miners will be packaged and stored in a new block, and the corresponding miners will also receive a certain amount of bitcoin rewards
2. The mining process is extremely complex, which is beyond human power
the specific process is as follows. When a miner listens to the transaction, he will first verify the transaction information. The verified transactions will be recorded by miners and stored in their own database. There may be thousands of miners in the world doing the same thing, but every ten minutes, only one miner has the right to create a new block, so that the transaction information recorded by himself can be recognized and stored permanently
next, miners need to fight for the right to keep accounts. This is a competition of computing power. The core of this competition is to use computers to complete a large number of calculation tasks and find a super difficult random number. This random number is the special solution of the equation mentioned in the first paragraph. The miner who calculates the correct random number first wins. According to the rules of the game, the probability of a miner getting the accounting right is directly proportional to the proportion of his computing power in the total computing power of the whole network. In other words, the probability of finding the random number is equivalent to throwing out 100 million dice, and the total number of dice is less than 150 million. Therefore, mining requires a large number of computers, installation of specific algorithm software, repeated operation day and night, not human
3. Bitcoin mining is actually "villagers' bookkeeping"
maybe some netizens still don't understand, let's take an example. In a village, the villagers often borrow money from each other, even if they write a written document, there is a risk of default. Then, every time there is a loan behavior in the village, we will use the village trumpet to inform everyone that all the villagers (miners) will record all the transaction records in their own account books.
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.
bitcoin is a kind of "electronic currency", which is composed of a series of complex codes generated by computer. New bitcoin is manufactured through preset programs. With the increase of the total amount of bitcoin, the speed of new coin manufacturing slows down. Until 2140, the total amount of bitcoin reached the maximum of 21 million, and the total amount of bitcoin g out has exceeded 12 million
starting from the essence of bitcoin, the essence of bitcoin is actually a special solution generated by a bunch of complex algorithms. A special solution is one of the infinite (in fact, bitcoin is finite) solutions that can be obtained from the equations. And each special solution can solve the equation and is unique
in terms of RMB, bitcoin is the serial number of RMB. If you know the serial number of a banknote, you have the banknote.
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.
Bitcoin is a virtual encrypted digital currency in the form of P2P
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
unlike all currencies, bitcoin does not rely on specific currency institutions. It is generated by a large number of calculations based on specific algorithms. Bitcoin economy uses the distributed database composed of many nodes in the whole P2P network to confirm and record all transactions, and uses the design of cryptography to ensure the security of all aspects of currency circulation
extended data
features of bitcoin:
1. Circulation around the world: bitcoin can be managed on any computer connected to the Internet. No matter where you are, anyone can dig, buy, sell or collect bitcoin
2. Exclusive ownership: private key is needed to control bitcoin, which can be stored in any storage medium in isolation. No one can get it except the user himself
3. Low transaction cost: bitcoin can be remitted free of charge, but a transaction fee of about 1 bitfen will be charged for each transaction to ensure faster transaction execution