Bitcoin operation

1. The concept of bitcoin was first proposed by Nakamoto in 2009. According to Nakamoto's idea, open source software was designed and released, and P2P network was built on it. Bitcoin is a kind of P2P digital currency. Point to point transmission means a decentralized payment system

bitcoin network generates new bitcoin through "mining". In essence, the so-called "mining" is to use computers to solve a complex mathematical problem to ensure the consistency of bitcoin network distributed accounting system.

2. The concept of bitcoin was first proposed by Nakamoto in 2009. According to Nakamoto's idea, open source software was designed and released, and P2P network was built on it. Bitcoin is a kind of P2P digital currency. Point to point transmission means a decentralized payment system

bitcoin network generates new bitcoin through "mining". In essence, the so-called "mining" is to use computers to solve a complex mathematical problem to ensure the consistency of bitcoin network distributed accounting system. Bitcoin network will
automatically adjust the difficulty of mathematical problems, so that the whole network can get a qualified answer about every 10 minutes. Then bitcoin network will generate a certain amount of bitcoin as a reward to reward the person who gets the answer<

how to get bitcoin

first of all, your computer should have installed the latest version of bitcoin client. After opening the client, it will automatically download all the transaction information data on the network to the local. Depending on the network speed, this process may take several hours. At this time, your account balance is 0, you can ask your friends to send you some coins, but there are two more feasible ways: one is to do miner mining, the other is to do merchant acquisition

to be a miner is to proce bitcoin with one's own computer. In the early days, there was the option of mining in the client, but now it has been cancelled. The reason is very simple. With the increasing number of people participating in mining, it may take several years for one person to dig for 50 coins. So now, miners generally organize miners' guild to dig together. Specific mining methods, you can go online search

as a businessman, you can use money to buy coins g up by miners, you can also set up an online shop to sell things and collect bitcoin, and you can even go to the exchange to speculate in coins. Now there are many websites providing bitcoin exchange services, which can be converted into almost any kind of currency. If you really don't know how to exchange, you can also come to laoan for help<

for example,
bitcoin has become extremely hot on the Internet today. Since the Lushan earthquake in Sichuan this year, one foundation announced to accept donations from bitcoin. In a few days, it received 233 bitcoins, equivalent to nearly 220000 yuan. This is the first non-governmental organization in China to accept the donation of bitcoin, and bitcoin has become a donation in China for the first time, so its popularity has greatly increased, and many netizens are very curious about what bitcoin is

bitcoin, which has been circulating for four years in the circle of computer and network enthusiasts, is graally entering the public life. So, what is bitcoin and why do you pay so much attention to it? Next, this article will tell you.

3. It's an algorithm that constantly calculates and gets a piece of code, which is bitcoin.

4.

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

The

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

5. Data link

6. Bitcoin is not a company. Bitcoin is a consensus network that has led to a new payment system and a fully digital currency. It is the first decentralized peer-to-peer payment network, which is controlled by its users without a central management organization or middleman. From the user's point of view, bitcoin is much like Internet cash. Bitcoin can also be regarded as the most outstanding three style bookkeeping system

at present, bitcoin is still a small-scale large-scale socialization experiment, which is in the early stage of development, and the supporting infrastructure is not perfect. It is very difficult for some bitcoin start-ups to make profits at present. If there is no continuous large-scale capital entry, it is normal for them to go bankrupt. This is not the same company as the bank, but there are many enterprises that set up banks, and many banking enterprises will go bankrupt because of poor management. For example, the most typical example is Lehman Brothers bank. Bitcoin home network has a basic introction about bitcoin, you can learn about it.

7. Access to bitcoin blockchain technology through global computing power. Provide computing power to ensure the normal operation of bitcoin system
up to now, 5235.28p
it does not rely on any organization for maintenance, but relies on Internet technology
at present, bitcoin is recommended to be held for a long time, not for short-term speculation
- Bibo gold

8. As a new user, you just need to choose a wallet to install on your computer or smartphone. After the wallet is successfully installed, it will generate your first bitcoin address for you. You can generate more bitcoin addresses through your wallet whenever you need to. When your friends receive the bitcoin address you send them, they can pay you bitcoin, and vice versa. If your friends give you their bitcoin address, you can pay them in bitcoin. In fact, it's very similar to the way email works. So all that's left is to get some bitcoins and keep them safe. To start using bitcoin, you don't need to know the technical details
balance block chain
block chain is a publicly shared transaction record that the whole bitcoin network relies on. All confirmed transactions are included in the block chain without exception. In this way, it will be confirmed that the bitcoin to be spent in the new transaction belongs to the consumer. The integrity and timing of block chain are guaranteed by encryption algorithm
transaction - private key
a transaction is a value exchange between bitcoin addresses that will be included in the block chain. Bitcoin wallet holds a secret data called private key for each bitcoin address. The private key is used to sign the transaction and provide mathematical proof that the bitcoin in the transaction really comes from the owner of the bitcoin address. This signature also avoids the possibility of being modified after the transaction. Transactions spread among users and were confirmed by the bitcoin network in the next few minutes through a process called mining
processing mining
mining is a distributed consensus system that includes the transaction data to be confirmed into the block chain to complete the confirmation of these transactions. By mining, the data in the block chain can be stored in chronological order, the neutrality of bitcoin network can be maintained, and different computers on the bitcoin network are allowed to agree on the system state. To be confirmed, a transaction must be packaged into a block that complies with very strict encryption rules and verified through the bitcoin network. These rules can prevent the modification of existing blocks, because once there is a change, all blocks will be invalid. Mining is as difficult as winning the lottery. No one can easily and continuously add new blocks to the block chain. Therefore, no one can control what content is contained in the block chain or replace part of the content in the block chain to achieve the purpose of rolling back their costs.

9. 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.