Advantages and innovations of bitcoin
Publish: 2021-05-19 03:06:50
1. < / UL >
(1) bitcoin was originally a kind of network virtual currency to buy real-life goods
(2) advantages:
< UL >completely decentralized, without issuing institutions, it is impossible to manipulate the number of issues
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
cross border
it's difficult for the cat to survive
(3) disadvantages:
< UL >the vulnerability of trading platform
transaction confirmation takes a long time
the price fluctuates greatly
the public did not understand the principle, and the traditional financial practitioners resisted
2. Advantages: decentralization, global circulation, exclusive ownership, low transaction costs, no hidden costs
disadvantages: the trading platform is vulnerable to hacker attacks, the block chain leads to long transaction confirmation time, and the current speculation is very large. Recently, a special document has been issued to rectify the bitcoin trading platform.
disadvantages: the trading platform is vulnerable to hacker attacks, the block chain leads to long transaction confirmation time, and the current speculation is very large. Recently, a special document has been issued to rectify the bitcoin trading platform.
3. Bitcoin (bitcoin: bitcoin) was originally a kind of network virtual currency, similar to Tencent's q-coin, but it has been able to buy real-life goods. 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. In China, on November 19, 2013, a bitcoin was equivalent to 6989 yuan
in 2009, Nakamoto designed a kind of digital currency, namely bitcoin. The booming bitcoin market has gone up and down, and the identity of its founder "Nakamoto" has always been a mystery. Rumors about "the father of bitcoin" involve from the US National Security Agency to financial experts, and also give bitcoin a mysterious aura
on January 7, 2014, Taobao announced that it would ban the sale of Internet virtual currencies such as bitcoin and lightcoin from January 14. On February 26, 2014, Democratic Senator Joe Manchin of West Virginia issued an open letter to a number of regulatory authorities of the federal government of the United States, hoping that relevant institutions would pay attention to the status quo of bitcoin encouraging illegal activities and disrupting the financial order, and demanded that actions be taken as soon as possible to completely ban the electronic currency. On January 11, 2017), the Shanghai headquarters of the people's Bank of China and the Shanghai Municipal Finance Office carried out on-site inspection of bitcoin China, focusing on whether the enterprise carried out credit, payment, exchange and other related businesses without permission or license; Implementation of anti money laundering system; Fund security risks, etc. On January 12, 2017, the business management department of the people's Bank of China also entered the trading platforms such as "fire coin net" and "currency bank" in Beijing
on May 12, 2017, a global outbreak of bitcoin virus madly attacked public and commercial systems! More than 40 hospitals across the UK have been widely hacked, leaving the NHS in chaos. The campus networks of many colleges and universities in China were also occupied. Nearly 74 countries in the world have been seriously attacked
currency characteristics
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: the 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
complete decentralization, 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's hard for a 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
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.
in 2009, Nakamoto designed a kind of digital currency, namely bitcoin. The booming bitcoin market has gone up and down, and the identity of its founder "Nakamoto" has always been a mystery. Rumors about "the father of bitcoin" involve from the US National Security Agency to financial experts, and also give bitcoin a mysterious aura
on January 7, 2014, Taobao announced that it would ban the sale of Internet virtual currencies such as bitcoin and lightcoin from January 14. On February 26, 2014, Democratic Senator Joe Manchin of West Virginia issued an open letter to a number of regulatory authorities of the federal government of the United States, hoping that relevant institutions would pay attention to the status quo of bitcoin encouraging illegal activities and disrupting the financial order, and demanded that actions be taken as soon as possible to completely ban the electronic currency. On January 11, 2017), the Shanghai headquarters of the people's Bank of China and the Shanghai Municipal Finance Office carried out on-site inspection of bitcoin China, focusing on whether the enterprise carried out credit, payment, exchange and other related businesses without permission or license; Implementation of anti money laundering system; Fund security risks, etc. On January 12, 2017, the business management department of the people's Bank of China also entered the trading platforms such as "fire coin net" and "currency bank" in Beijing
on May 12, 2017, a global outbreak of bitcoin virus madly attacked public and commercial systems! More than 40 hospitals across the UK have been widely hacked, leaving the NHS in chaos. The campus networks of many colleges and universities in China were also occupied. Nearly 74 countries in the world have been seriously attacked
currency characteristics
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: the 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
complete decentralization, 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's hard for a 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
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.
4. Bitcoin is a virtual cryptocurrency based on decentralization, peer-to-peer network, consensus initiative, open source, and blockchain as the underlying technology. It was proposed by Nakamoto in 2008 and born in 2009
bitcoin does not have a centralized issuer. It is generated by the calculation of network nodes. It can be bought and sold on any computer connected to the Internet, and has a strong scarcity
Decentralization: bitcoin is the first distributed virtual currency. 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
the content of this article comes from: financial code of the people's Republic of China: application edition, China Law Press
bitcoin does not have a centralized issuer. It is generated by the calculation of network nodes. It can be bought and sold on any computer connected to the Internet, and has a strong scarcity
Decentralization: bitcoin is the first distributed virtual currency. 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
the content of this article comes from: financial code of the people's Republic of China: application edition, China Law Press
5. No bank holidays, no borders, no imposed restrictions. Bitcoin allows its users full control of their funds. You need to download bittok app for the transaction. The real name authentication can carry on the transaction.
6. Decentralization will not be affected by inflation.
7. Lightning network is just a simple double entry bookkeeping system, which is built on the three form bookkeeping system of bitcoin. Double entry bookkeeping is fast, and there is no need to worry about the bottleneck of throughput, because only the two sides of the transaction record their transactions, they do not need to pass their transaction records to everyone. But this double entry bookkeeping system relies on and is supported by the triple entry bookkeeping system. You can get the throughput of double entry bookkeeping and the security and no intermediary trust of triple entry bookkeeping at the same time
the working principle of lightning network is to create an interweaved network composed of two payment channels. Basically, it's a trade between two people. However, by creating a network in which all channels are interconnected, you can route payments through multiple channels. If you want to send payment to anyone in the network, you can credit the account directly connected with yourself (deposit money to the account) in your Lightning network channel, and then the account can credit the account connected with yourself (the amount is the same, so there is no actual change in value). This process continues, Until you pass it on to the participant you actually want to trade, he will receive the money
therefore, technically, you are only trading with an account directly associated with the payment channel where your funds were originally sent. So, every routing connection between you and the ultimate payee is made up of two participants who simply trade with each other, each of whom accounts for each other - a series of double entry paths. Lightning network is a network composed of double entry accounting channels of two participants, so there is no bottleneck in transaction throughput.
the working principle of lightning network is to create an interweaved network composed of two payment channels. Basically, it's a trade between two people. However, by creating a network in which all channels are interconnected, you can route payments through multiple channels. If you want to send payment to anyone in the network, you can credit the account directly connected with yourself (deposit money to the account) in your Lightning network channel, and then the account can credit the account connected with yourself (the amount is the same, so there is no actual change in value). This process continues, Until you pass it on to the participant you actually want to trade, he will receive the money
therefore, technically, you are only trading with an account directly associated with the payment channel where your funds were originally sent. So, every routing connection between you and the ultimate payee is made up of two participants who simply trade with each other, each of whom accounts for each other - a series of double entry paths. Lightning network is a network composed of double entry accounting channels of two participants, so there is no bottleneck in transaction throughput.
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