The principle of bitcoin decentralized transaction

1.

The remitter will pay bitcoin directly to the other party according to the address of the payee through the computer or smart phone

after the transaction data of bitcoin is packaged into a "data block" or "block", the transaction is initially confirmed. When a block is linked to a previous block, the transaction is further confirmed. After six block confirmations in a row, the transaction was irreversibly confirmed

the bitcoin peer-to-peer network stores all transaction history in the "blockchain". The blockchain continues to extend, and once new blocks are added to the blockchain, they will not be removed. In fact, blockchain is a distributed database composed of a group of scattered client nodes and all participants, which is a record of all bitcoin transaction history

extended data

users can buy bitcoin, and at the same time, they can "mine" bitcoin by using computers to perform a large number of calculations according to the algorithm. When users "mine" bitcoin, they need to use the computer to search for 64 bit numbers, and then compete with other gold miners by repeatedly solving puzzles to provide the required numbers for the bitcoin network. If the user's computer successfully creates a set of numbers, then they will get 25 bitcoins

from 2012 to 2014, bitcoin swept the world, and graally formed the "virtual currency" instry chain represented by bitcoin. This is a change in the financial instry and a new proct of the combination of the financial instry and the Internet. It represents a financial milestone in the new era and marks a new chapter in the history of the Internet. Bitcoin fund is one of the derivative procts represented by bitcoin in the era of "virtual currency"

according to the relevant news reports of Fuhui China, bitcoin fund will be open for operation in the autumn of 2014. Fuhui bitcoin fund, as the world's first operation mode of mutual benefit and win-win with financial management mode, is original and full of temptation and challenge

2. 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

3. 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.

4. Ah, the transaction logic of bitcoin is generally based on a principle of a blockchain, and then as we say, it is a buy and buy out of content

5.

Because the biggest difference between bitcoin and other virtual currencies is that the total amount of bitcoin is very limited and it has a strong scarcity

many websites for technology players have begun to accept bitcoin transactions. For example, websites like hotcoin, coin an and okex, 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. There are specialized bitcoin third party payment companies abroad, similar to the domestic Alipay, which can provide API interface services. p>

you can use money to buy bitcoin, or you can be a miner to "mine" them, and use computers to search for 64 bit numbers. By repeatedly decrypting with a computer, it competes with other gold miners to provide the number needed for the bitcoin network. If the computer can successfully create a set of numbers, it will get 12.5 bitcoins

bitcoin is decentralized. It needs to create a fixed number of bitcoins in each unit of computing time. It can get 12.5 bitcoins every 10 minutes. By 2140, there will be 21 million bitcoins in circulation. In other words, bitcoin system can be self-sufficient, which can be translated into coding to resist inflation and prevent others from sabotaging

extended data:

monetary characteristics

1. 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

2. 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

3. Exclusive ownership: private key is needed to control bitcoin, which can be stored in any storage medium in isolation. No one can get it except the user himself

4. 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

5, no hidden cost: as a means of payment from a to B, bitcoin has no cumbersome limit of quota and proceres. If you know the other party's bitcoin address, you can pay

6. Cross platform Mining: users can explore the computing power of different hardware on many platforms

6.

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

(3) only the central server can store and process data in the central network; Large amount of data storage; The central manager has great authority

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

7. The basic technology of bitcoin is blockchain, and the most successful application example of blockchain is bitcoin. Blockchain is a technology, and bitcoin is a digital currency. The implementation of this digital currency uses blockchain technology. If you want to get bitcoin, you can mine or trade directly on the okex platform. If you don't understand, please feel free to ask questions

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. Bitcoin is a consensus network, contributing 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

anyone can run software on specialized hardware and become a bitcoin miner. Mining software monitors transaction broadcast through P2P network and performs appropriate tasks to process and confirm these transactions. Bitcoin miners can earn transaction fees paid by users to speed up transaction processing and additional bitcoin issued according to fixed formula
new transactions need to be included in a block with mathematical workload proof before they can be confirmed. This kind of proof is hard to generate because it can only be generated by trying billions of calculations per second. Miners need to run these calculations before their blocks are accepted and rewarded. As more people start mining, the difficulty of finding effective blocks will be automatically increased by the network to ensure that the average time to find a block remains at 10 minutes. Therefore, the competition for mining is very fierce, and no indivial miner can control the content contained in the block chain
workload proof is also designed to rely on previous blocks, which forces the time sequence of block chain. This design makes it extremely difficult to cancel previous transactions, because the workload proof of all subsequent blocks needs to be recalculated. When two blocks are found at the same time, the miner will process the first block received, and once the next block is found, it will be transferred to the longest block chain. This ensures that the mining process maintains a global consistency based on processing capacity
bitcoin miners can neither increase their rewards by cheating, nor deal with the fraulent transactions that destroy the bitcoin network, because all bitcoin nodes will reject the blocks containing invalid data that violate the bitcoin protocol rules. Therefore, even if not all bitcoin miners can be trusted, the bitcoin network is still secure

sha256 is an encryption algorithm.