What is Bitcoin?
It was the first cryptocurrency created by an anonymous person named Satoshi Nakamoto in 2009.
If you look at Satoshi Nakamoto's paper, you can see the distrust of a third party in financial transactions, the credit agency. The trading system works well enough, but it still has the inherent weakness of a credit-based model and is vulnerable to hacking.
In addition, the costs of arbitration eventually increase transaction fees, limit the minimum amount of transactions to prevent the possibility of small transactions, and even non-recoverable services, resulting in more costs.
Bitcoin is the biggest difference from ordinary currencies, which do not have a proprietary This makes it useful for two uncontrolled and voluntary traders to make direct transactions without third-party credit agencies.
The development of Bitcoin is a reaction to the monopolization of currency issuance by central banks and arbitrary monetary policy in the name of monetary policy.
As I said in the previous article, because the nation can control the value of its currency, problems such as hyperinflation, deflation, and quantitative easing can arise, and problems are already becoming serious enough to be seen on the news, most countries in Europe, most of South America. And as I explained in the other article in the way that money is made, the bank has already made a loan to the extent that it creates a credit bubble. A case in point is the 2008 subprime mortgage crisis.
By definition, Bitcoin's official site is defined as follows:
"Beatcoin is the first cyber money to realize cryptocurrency created by Satoshi Nakamoto in 2009. Bitcoin's transactions are made by P2P-based distributed database using public key encryption method. All transactions are open and work proofs (POWs) prevent heavy welfare output. All transaction records are stored in the database and use Merkel Tree to reduce the size of the"
The relationship between Bitcoin and Blockchain?
The block, which is named after it looks like a block, and each block is connected like a chain, so it is called a blockchain.
And what's called a block is a data, a structured space, where the transaction details are aggregated, and it's completed one every 10 minutes, spread across the cryptographic network, and the N-block, which is generated, proves the integrity of the N-1st block. Bitcoin combines a distributed database function called blockchain with encryption.
The biggest characteristic here is technology.
Blockchain distributes the ledger recording transaction information to Peer to Peer network, not to the central server of a specific institution, including financial institutions, so that the same transaction books are kept by multiple users, and it is impossible to manipulate or falsify them. The above information is the same as other cryptocurrency.
In other words, when trading with cryptocurrency, it's recorded in the open book with blockchain technology, which is encrypted and stored in a public key to ensure security and anonymity. Although the central agency does not record or store the transaction details, the transaction is proven by joint storage and final approval by network participants using P2P technology.
What is cryptocurrency?
A monetary system that uses encryption technology in the process of issuing and approving transactions of money, unlike a traditional central system (Central Bank, Government).
You can trade individuals with individuals. This currency was created using an open-key encryption method to respond to distrust of existing financial institutions and rising uncertainties in the financial market.
Therefore, what we call cryptocurrency, not virtual currencies, is more accurate.
So what's mining?
I talked about the volume of the issue earlier. The central bank issues money, but Bitcoin is limited in volume.
So who's issuing it? Bitcoin is similar to gold, which is issued and obtained by mining. This mining is not just responsible for the supply of currencies, but also for the guarantee of transactions.
To obtain one bitcoin, you need to solve the problem of Hardcrash, and you can mine bitcoin using your computer or using Asic.
To solve the above problem, you can calculate the hash value of the new block by entering the immediate hash value, the unapproved transaction record, and any number called the nonce. When a new block is created, it is fixed unless you reverse the process again, and if you want to change the block by forming a chain, you must re-fix the old and new blocks.
Solving the problem and creating a new block to obtain bitcoin as compensation, this is important to prevent falsification of transaction history data (for counterfeiting, you must simultaneously falsify linked and emerging blocks).
There are various forms of mining, such as POW, POS, DPOS, etc., which are the above proof of work.I'll explain.^^
I think it will be useful for beginners who want to learn more about Bitcoin and Blockchain. A great addition to existing topics. Good job!
