Tuesday, February 2, 2016

Differences between Credit Card and Bitcoin Transactions Online

So what we will find the Differences Between Credit Cards and Bitcoin Transactions Online;

How does credit card transactions online?

The buyer, in order to buy something from the seller, the seller must send all your credit card details. That is permanently give each seller access to all of the money in the card. The seller can use the data to charge higher than the agreed amount, or sell them, or lost, etc.
In addition, this data is sent via the Internet, e.g. insecure information transmission channel (SSL does not work, because it is centralized).
Therefore, the credit card transaction is approved (which is not possible to cancel), only about a month. Within a month, the cardholder can call the bank and request to cancel the transaction, arguing that it was not done by him. Then the bank deducts the money from the seller, and returned to the buyer. The seller remains and no goods and no money, and sometimes even have to pay the bank for the "work." Banks usually supported by a buyer, because it is their direct customer.
Cancelling is for 3 - 5% credit card transaction. To prevent this from happening, sellers must pay a lot of money, labor and time to verify the identity of the buyer. For shoppers are often asked to provide more personal information about themselves. These data may also be stolen, lost, etc. (Identity theft).

How does Bitcoin transactions online?

Each Bitcoin user can create an unlimited number of public / private key pairs. Public key - this is Bitcoin account address private key to allow release of the account in the BTC.

To send money to another Bitcoin user, the user of the Bitcoin network sends example. the message "I want to transfer 0.00255 BTC from account 1PL1YUoN5d... into account 3JMSiH2a... and sign the message with his private key. If anyone in this message replace any point or comma, signature no longer valid.

Each Bitcoin network user can check whether the signature is correct, but may not faked or copied signature.

The message is sent in clear text, unencrypted and no Bitcoin system information transmitted is not encrypted.

As Bitcoin system transmitted information is encrypted, and it all takes place in public, this is simply not something crack. If the transaction did not take place in public, that is, if they did not see and to your blockchain copy has not recorded, it did not happen at all.

Bitcoin transactions are approved and some of Bitcoin transactions require at least 2 confirmation, some require at least 6, but they can no longer cancel already within 5 - 60 minutes.

Even unconfirmed Bitcoin transaction would be difficult and expensive to cancel, so small and medium-value transactions can be made even without waiting for approval.

BTC Each unit can be divided into 100 million parts, the minimum amount possible to send BTC is currently 0.00000001 BTC.

What is Bitcoin?