The principle of the birth of bitcoin
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. Bitcoin is a virtual encrypted digital currency in the form of P2P. 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 will get a qualified answer about every 10 minutes. Then bitcoin network will generate a certain amount of bitcoin as block reward to reward the person who gets the answer
When the global financial crisis broke out in 2008, someone published a paper under the pseudonym of "Nakamoto Tsung", describing the mode of bitcoin
many bitcoin players are attracted by the fact that bitcoin can not be issued at will. Contrary to the attitude of bitcoin players, economists have a polarized attitude towards the fixed amount of 21 million bitcoin
Economists of Keynesian school believe that the government should actively regulate the total amount of money, and use the tightness of monetary policy to timely fuel or brake the economy. As a result, they believe that bitcoin's fixed aggregate currency sacrifices its adjustability, and worse still, it will inevitably lead to deflation, thereby harming the overall economy. Austrian economists hold the opposite view. They think that the less the government intervenes in money, the better. The deflation caused by the fixed amount of money is not a big deal, even a sign of social progressbitcoin 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 will 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
when bitcoin was born in 2009, each reward was 50 bitcoins. Ten minutes after its birth, the first 50 bitcoins were generated, and the total amount of money at this time is 50. Then bitcoin grew at a rate of about 50 every 10 minutes. When the total amount reaches 10.5 million (50% of 21 million), the bounty will be halved to 25. When the total amount reached 15.75 million (5.25 million new output, or 50% of 1050), the bounty was further halved to 12.5
first of all, according to its design principle, the total amount of bitcoin will continue to grow until it reaches 21 million more than 100 years later. But the total amount of bitcoin will grow very slowly in the later period. In fact, 87.5% of bitcoin will be "g up" in the first 12 years. Therefore, in terms of the total amount of money, bitcoin will not reach a fixed amount, and its total amount of money will continue to expand, although the speed is getting slower and slower. So it looks like bitcoin is the inflation currency
However, the judgment of deflation or inflation is not based on whether the total amount of money is decreasing or increasing, but on whether the overall price level is falling or rising. The rise of overall price is inflation, and vice versa. In the long run, the issuing mechanism of bitcoin determines that the growth rate of its total amount of money will be far lower than that of social wealth Economists of Keynesian school believe that the continuous decline of prices will make people tend to postpone consumption, because the same dollar can buy more things tomorrow. The rection of consumption will further lead to shrinking demand, unsalable goods, lower prices and a vicious circle of "deflation spiral". Similarly, the deflationary currency itself can appreciate even if it is not deposited in the bank (the purchasing power becomes stronger and stronger), people's willingness to invest will increase, and social proction will fall into a downturn[ 5] Therefore, bitcoin is a currency with deflationary tendency. In bitcoin economies, commodity prices priced with bitcoin will continue to fallbitcoin is a kind of network virtual currency with limited quantity, but it can be used to cash out: it can be converted into the currency of most countries. You can use bitcoin to buy some virtual items, such as clothes, hats, equipment, etc. in online games. As long as someone accepts it, you can also use bitcoin to buy real-life items
historical background
bitcoin is one of the first currencies to realize the concept of "cryptocurrency". In 1998, Wei Dai first expounded the concept of "cryptocurrency" in cypherpunks mailing list. Based on the basic concept of money, which is used to pay for goods, services and debt or any form of records in a given country or economy, bitcoin is a new form of money. Its original design is to integrate the idea of not relying on the central authority, using the principle of cryptography to control the issuance and transaction of money
in 2009, Satoshi Nakamoto published the first bitcoin specification and its proof of concept in the cryptography mailing list. At the end of 2010, Nakamoto claimed that he had transferred to other affairs and left the project. The creator of bitcoin never revealed his true identity, but left his invention to the world. Today, the origin and motivation of the invention of bitcoin is still a mysterious story
since 2010, many developers have devoted themselves to this project, and the bitcoin community has grown rapidly. Between June and July 2011, bitcoin suddenly gained media attention, leading to large-scale buying. The resulting bubble led to the continued decline in the price of bitcoin in the second half of 2011. After that, the price of bitcoin graally rose to the height of 2011
in order to regulate, protect and promote the development of bitcoin, the bitcoin foundation was established on September 27, 2012. Nowadays, with the increasing number of bitcoin users, bitcoin economy is developing rapidly
technical features
any network like bitcoin has the following basic features:
bitcoin can be transferred between any node of the network
the transaction is irreversible
the use of block chain avoids the occurrence of double consumption
the transaction will spread out in a few seconds and pass validation in 10 to 60 minutes
transaction processing and currency issuance are carried out through mining
bitcoin can be received at any time whether it is online or not<
economic rules
the whole bitcoin network jointly implements the following rules:
the total amount of bitcoin issued is about 21 million
a bitcoin can be divided into 8 decimal places, with a total of about 21 × 1014 monetary units
transaction costs are very low and most of them are free
statistics
bitcoin network has been running continuously for more than 48 months. In the past year, bitcoin's security features have attracted attention and developed significantly. As of April 2013:
the longest block chain has more than 232000 blocks
one of the largest distributed computing networks in the world, with more than 65 trillion hashes per second
there are 50000 transactions every day, with a total amount of several million US dollars
the total value of bitcoin in circulation exceeds US $1.3 billion
there is only one major security incident in the protocol, which was resolved in August 2010
other information can be referred to:
Network: http://ke..com/view/5784548.htm
bitcoin official website: http://bitcoin.org/zh_ CN/
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.
1. I now have a 100 yuan personal name coin in my hand Bitcoin)
2.. Who cares about the official account? But you need to guess the number of the money in the comments Mining, random filling, numerical solution)
try your best to guess, and you get 100 yuan in full - personal mining
pay money to gather some people to guess together - mining field
gather people you don't know to guess together, and allocate the 100 yuan in proportion through the number of guesses -
the above is a simple example of analogy, of course, You followed and guessed the number of 100 yuan in my pocket, I promise you. So what's going on with bitcoin mining
Author: leaf