Tuesday, December 22, 2015

What is Bitcoin?

Bitcoin is an absolutely new revolutionary concept, product of a new era, product of an open-source project created by Japanese geek Satoshi Nakamoto.
Digital currency in which transactions can be performed without the need for a central bank.


          Bitcoin Breakdown: 
1 Satoshi = 0.00000001 
10 Satoshi = 0.00000010 
100 Satoshi = 0.00000100 = 1 µBTC(youbit) = 1 Bit
1,000 Satoshi = 0.00001000 
10,000 Satoshi = 0.00010000 
100,000 Satoshi = 0.00100000 = 1 mBTC(embit)
1,000,000 Satoshi = 0.01000000 = 1cBTC(Bitcent)
10,000,000 Satoshi = 0.10000000
100,000,000 Satoshi = 1.00000000 = 1BTC



And yet - what is Bitcoin?

Bitcoin is digital currency, created and held electronically.
No one controls it. 
Bitcoins aren’t printed, like dollars or euros.
But they are used anywhere around the world because it simple for customers to use bitcoin at millions of businesses around the world.

It’s easy to load your Debit Card with funds from your Bitcoin Wallet or get for fre from many sites and Bitcoin faucet.
It’s easy to use Bitkoin online shop or the store where you buy the food, take off your money from an ATM, it's easy and quick and everywhere in the world where using Master Card or Visa. 

And to have as Xapo Debit Card is very worthwhile.

Plus another reason - Because Bitcoin exchange rate is growing constantly.



A number of important technical terms:

Open-source software;

This program, which source software code is public and accessible to everyone. In this way, each person in the world (understanding programming) can absolutely know exactly how the program itself to make sure exactly what the program is doing, and what does not so it does not matter what is the open source software developers.

More information;

Peer-to-peer (P2P) network;


P2P is a network model, in which the exchange of resources directly between users. This is in contrast to the client-server model. In pure P2P network is not the concept of client and server - bound users are equivalent, that is that each acts as a client and a server. Such a network core strength - it can not be switched off because there is no central point that could be attacked.


Public Key Cryptography;


Modern cryptography form of exclusionary symmetric cryptographic weakness - key encryption for transfer over unsecured channels. Until the emergence of public-key cryptography, encryption key was meant to be kept secret. Such a form of cryptography had one major drawback - encrypted data sender had to pass decryption key for the data security of the recipient, but at cryptographic way, such as by phone or meet face to face. Such key modes of transmission are rarely completely safe, while the public key cryptography makes key exchange over unsecured channels intended for encryption key does not allow decrypting data. Public key cryptography algorithms typically use two keys - a private, which is kept secret and the public, which is made public. This form of cryptography can be used for two purposes - confidential information encryption, and digital signatures.

Public ledger system;

This is a financial system in which money is transferred not physically, but a public announcement that they no longer belong to you, but to someone else. For the first time such a system has been implemented in about 1,000 years ago, Japo island. Japie's used a huge limestone rock lumps as money. As to transfer blocks of stone were very expensive and inconvenient, money transfer took place in a public announcement that the stone is no longer belong to you, but to someone else. 

The system really shows the essence of the event, when carrying one stone to another place, there was a storm, and the stone sank. Even those sunken stone in coming centuries will continue also successfully been used to carry out transactions, because everyone knew that the stone exists, and where it is.


Proof-of-work;


It is a system whose original purpose was to combat spam. System operation is the - now can send millions of spam e-mail letters, because it does not cost them anything. If you send e-mail letter, the computer should perform some complex mathematical calculations (eg. the system can be configured to use 1GHz processor, send one e-mail it would take 2 seconds), then ordinary mail users it would not cause any problems, but spamer could only send several thousand messages per day, or to buy a more powerful computer hardware to speed up the calculations, but then, he unprofitable financially to do so. This system did not catch on just because it would pose the same problems, and on legal spamer's (eg. Newsletters senders).


Byzantine generals problem;

As in a group - network - human / computer / etc, to reach an agreement (consensus), under the following conditions:
Communication transmission channels between network participants are unreliable.
Some participants in the network can defraud or otherwise harm the network.

Everything must be carried out in such a way that you do not trust anyone, which means that the problem be solved without the imposition of central control point or hierarchy ("trusted third-party") - all participants in the network must be equal.


















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