The essence of bitcoin
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.
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
Bitcoin is a kind of virtual encrypted digital currency in the form of P2P. Different from 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 the use of cryptography design to ensure the security of all aspects of money circulation. However, on September 4, 2017, the central bank and other seven ministries and commissions announced that virtual currency trading is prohibited in China, and bitcoin is prohibited from circulating in China
according to the first article of the notice on preventing the financing risks of token issuance, we should accurately understand the essential attributes of token issuance financing activities. Token issuance financing refers to the illegal sale and circulation of tokens by the financing subject to raise the so-called virtual currency such as bitcoin and ether coin from investors. In essence, it is an unauthorized illegal public financing behavior, which is suspected of illegal sale of token bills, illegal issuance of securities, illegal fund-raising, financial fraud, pyramid schemes and other illegal criminal activities
Relevant departments will closely monitor relevant developments, strengthen cooperation with judicial departments and local governments, strictly enforce the law in accordance with the current working mechanism, and resolutely deal with market chaos. If suspected crimes are found, they will be transferred to judicial organs. The token or "virtual currency" used in token issuance financing is not issued by the monetary authority, does not have such monetary attributes as legal compensation and compulsion, does not have the same legal status as currency, and cannot and should not be used as currency in the market
extended information:
Article 3 of the announcement on preventing the financing risk of token issuance strengthens the management of token financing trading platform. From the date of this announcement, any so-called token financing trading platform shall not engage in the exchange business between legal tender and token and "virtual currency", nor buy or sell token or "virtual currency" as a central counterpart, nor provide pricing, information intermediary and other services for token or "virtual currency"
for the token financing trading platform with illegal problems, the financial management department will request the competent department of telecommunications to close its website platform and mobile app according to law, request the network information department to remove the mobile app from the app store, and request the instrial and commercial administration department to revoke its business license according to law
Article 4 financial institutions and non bank payment institutions shall not carry out business related to token issuance financing transactions. All financial institutions and non bank payment institutions shall not directly or indirectly provide procts or services such as account opening, registration, trading, clearing and settlement for token issuance and financing and "virtual currency", nor undertake insurance business related to token and "virtual currency" or include token and "virtual currency" into the scope of insurance liability. Financial institutions and non bank payment institutions shall report to the relevant departments in a timely manner if they find clues of violation of laws and regulations in token issuance financing transactions
what is the essence of bitcoin
A: in essence, it is a multi person account book. But the currency (bitcoin) on the account book is generated out of thin air, and the algorithm is sha256 workload proof
how to identify its uniqueness< As like as two peas, br / > answer: it's still a book. All the books are kept by all the game player in the world. Just imagine, the whole world knows that I have five coins. I pay five coins to a in the way of bookkeeping, and keep the account book. Unless you change 51% of everyone's account book, it will be effective, but the change has to be proved by workload, so it is not so easy to change. This guarantees uniqueness I can only give you a general idea. Although it's not easy to understand, you can check it yourself)
according to my understanding, bitcoin should not be stored in a database to record users' bitcoin... It is stored locally
A: it's stored locally, but it's broadcast immediately in P2P mode. Everyone who plays bitcoin keeps a locally. If your account book is different from others, for example, if you say you have 100 million, your account book is invalid. If no one admits it, it can't be sent
PS: it's learned a lot, involving economics, cryptography, sociology, computer programming, etc. One can't master all of them, so there are many people who don't understand them. When you understand 1 / 2 of what XX learned above, you will understand.
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 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 money circulationbitcoin: 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, equipment, etc. in online games. Internet users can also use bitcoin to buy real goods
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 a reward to reward the person who gets the answer
users can buy bitcoin, and at the same time, they can use computers to "mine" bitcoin according to a large number of calculations. When users "mine" bitcoin, they need to search for 64 bit numbers by computer, and then compete with other gold diggers by repeatedly solving riddles to provide the required numbers for bitcoin network. If the user's computer successfully creates a set of numbers
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. The following table lists some websites that download bitcoin wallets and addresses for free
< H2 > resources network bitcoin
the most familiar and easy to understand is Bill Gates and his Microsoft Windows operating system. Windows has entered into thousands of households and instries. People have improved proctivity and created great value through this computer program. As a result, Microsoft even once became the company with the highest market value in the world
What about bitcoin, also a software with high "value"“ In fact, many people want to know what kind of value bitcoin brings to people and things, thus supporting the consensus on bitcoin and steadily boosting its market value to more than 1 trillion< Miners and other participants in mining ecology
to put it simply, bitcoin mining machine is a machine that keeps making profits for miners. It can lay eggs like a chicken and proce value, and even go to the road of ten billion rich. This is the value of bitcoin for miners, mining airport operators, mining pools (service providers) and other people who participate in the upstream and downstream of mining ecology. Miners are the most important participants for bitcoin, and for miners, the miner that can proce bitcoin is a "hen" that can lay golden eggs. Although the journey of mining is not as simple as expected, and it's really a bit like opening a "chicken farm", which needs to provide all kinds of suitable environment, maintenance and "food" (energy) transportation to successfully proce "golden eggs" for profit, the miners are attracted by the benefit distribution mechanism of bitcoin, and new miners are constantly joining in
2. User
the full name of bitcoin system is a peer-to-peer e-cash system, so for users, it can be used to initiate transfer transactions. So why use it to transfer money? To put it bluntly, it means saving time, effort and money. Bitcoin does not need to transit through banks, third-party payment companies and so on to reach the other party's account directly, which eliminates the processing time, operation manpower and fees of third-party institutions. The fees collected by banks and other financial institutions through financial services can show how huge the fees are. In fact, many people don't understand the concept of the third-party guarantee agency very well. Most of the time, we transfer money for free, because in the credit society, small amount transfer is completed through the credit line between different financial institutions, which is not a real transfer
3. Savers and speculators
because bitcoin has value in use, and has many high-quality characteristics, especially like gold, and some of its characteristics are better than gold. It also has the function of "partial" risk aversion and value saving like gold, so it is graally regarded as gold, an international hard currency, and began to be hoarded by many people
4. People in poor and backward or "turbulent" areas
e to the low transfer cost and short time required by bitcoin. In many poor and backward countries, there is no need to build expensive network infrastructure to transfer money through encrypted network. Bitcoin's infrastructure is built by miners all over the world, which does not need the burden of poor countries' governments. There is no intermediate cost for payment and payment of salaries, which can save a lot of money< There are many such corners in the world, which are remote but rich in mineral resources or natural resources such as water conservancy and wind power. For example, there are many coal mines in some areas, but e to the high transportation cost, they can not be transported out. At the same time, e to the lack of people, the power generated by thermal power, hydropower stations and wind farms built in these areas is very surplus, and the economy of these areas is often relatively backward. At this time, they need and welcome miners to settle in. Miners not only bring a lot of jobs, but also convert the local surplus energy into power resources, and then generate a lot of income through bitcoin mining. This is actually equivalent to storing the energy value that might have been surplus and wasted through bitcoin network, and then paying the local government and people through electricity charges, Drive the local economy<
the Xueshuo innovation blockchain Technology Workstation of Lianqiao ecation online is the only approved "blockchain Technology Specialty" pilot workstation of "smart learning workshop 2020 Xueshuo innovation workstation" launched by the school planning, construction and development center of the Ministry of ecation of China. Based on providing diversified growth paths for students, the professional station promotes the reform of the training mode of the combination of professional degree research, proction, learning and research, and constructs the applied and compound talent training system.