The principle of bitcoin decentralization
Publish: 2021-04-11 10:00:15
1. bitcoin is valuable under certain circumstances, but it is worthless under certain circumstances. Because it's not legal tender. It is impossible for any country to get the right to issue legal tender to use any mining machine. Bitcoin is just a virtual number. While it's still possible to change money, change it quickly! It's too late to wait until it's worthless at the end.
2. Nakamoto is the first person to discover bitcoin. Bitcoin is not issued by any institution, and the total amount is only 21 million yuan. The transaction of bitcoin needs the consent of 6 people!
3. Because bitcoin does not exist in the issuing institutions (bitcoin is extracted from the network), nor does it exist in banks, but directly through a personal to personal transfer.
4. For example, I borrow money from you in a village. Normally, if I am afraid that you will not repay the money, I can find an intermediary recognized by everyone, such as the village head as the guarantor, and sign an IOU. In this way, if you default at that time, I can find an intermediary to prove that you really owe me money, But there are two problems: 1. What if the village head finds out that his long lost son colludes with him to cheat you on money? 2. What if the middleman dies on the spot the next day! This is about trust and security. If the method of blockchain is to provide you with the certificate of the whole village (distributed), so that everyone knows about it and the other party can't default on it. Second, even if a small number of people or village heads deny (some nodes commit crimes) that they have lost the IOU or tampered with the content, there will still be others to make the basis
above, explain the two problems of building owners: 1. Decentralization, because the account book records are not centralized in the hands of each participant, and you will get paid if you save and keep accounts. 2. Since I can get rewards by saving and keeping accounts, can I just keep accounts instead of storing them? If you have a mining pool, you can keep accounts for it and store it for you. In this way, you can still get good rewards. There are only a few mining pools in the world, so they are centralized
above, explain the two problems of building owners: 1. Decentralization, because the account book records are not centralized in the hands of each participant, and you will get paid if you save and keep accounts. 2. Since I can get rewards by saving and keeping accounts, can I just keep accounts instead of storing them? If you have a mining pool, you can keep accounts for it and store it for you. In this way, you can still get good rewards. There are only a few mining pools in the world, so they are centralized
5. For more technical overview of betterhash protocol currently under development, it should be enough to see the speech of Matt Corallo. It is unnecessary to understand the problem of reprinting the theory of self fighting game network in this paper, because Conceptually speaking, betterhash is better objectively, and it does not need a complete code implementation to understand how important it is.
6. 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.
7.
this is the general content of popular science. If you want to know more about it, you can take a look at Nakamoto's paper and the official popular science video below
The price of a bitcoin soared from more than $20000 to $40000. This can not help but arouse my research interest, or simply understand what bitcoin is, what its mechanism looks like, and uncover its mystery. Therefore, after a simple search of some information and some understanding of the special currency, I sorted out the information on hand< (3) purpose: decentralize, rece risk
all servers in the distributed network can store and process data, and each server has equal status, which can store more data and has higher security<
this is the general content of popular science. If you want to know more about it, you can take a look at Nakamoto's paper and the official popular science video below
8. Because most people do not have the courage and ability to challenge the strongest hegemonists in the world. Nakamoto also wanted to vent his anger before he created bitcoin, but something unexpected happened to him. He successfully challenged the hegemonists! But he was also afraid for various reasons and did not dare to go on the road any more. Nakamoto also came up with the idea of decentralizing money under the condition that the excessive issuance of coins led to the rapid shrinkage of personal income for many years. Bitcoin was just put forward by him, and was jointly completed by more knowledgeable friends on the Internet.
9. The design of "decentralization" determines that the "centralized" government cannot touch bitcoin
the emergence, development, amendment, circulation and extinction of bitcoin do not depend on the government, so "whether the government allows" has nothing to do with "whether bitcoin exists"
for example, the birth, development and extinction of the solar system do not need the permission of the government
if bitcoin is exchanged with the government controlled "legal tender" (such as US dollar), the government can influence the performance of bitcoin by controlling the legal tender
if the recognition of such assets reaches the bottom line of% 35 in 2019, the world pattern will be more reasonable, transparent and open
how should we deal with the coming risks- Buy bitcoin quickly to deal with the risk of "no bitcoin".
the emergence, development, amendment, circulation and extinction of bitcoin do not depend on the government, so "whether the government allows" has nothing to do with "whether bitcoin exists"
for example, the birth, development and extinction of the solar system do not need the permission of the government
if bitcoin is exchanged with the government controlled "legal tender" (such as US dollar), the government can influence the performance of bitcoin by controlling the legal tender
if the recognition of such assets reaches the bottom line of% 35 in 2019, the world pattern will be more reasonable, transparent and open
how should we deal with the coming risks- Buy bitcoin quickly to deal with the risk of "no bitcoin".
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