More information about algorithm of Bitcoin:
Cryptocurrency – distributed and decentralized system of digital money safe exchange, based on cryptography. Digital money of that system can be exchange for fiat money based on market rate.
Two main innovations, thanks to which cryptocurrency has appeared and based on which the entire existence of cryptocurrency became real – solution for two long known problems: “problem of double spending’s” and “Problems of Byzantine generals”.
Double spending’s – forgery of purchasing power, same as counterfeiting.
Until recently the only way to come over problem of double spending’s has been third part participation in transaction – trusted intermediary (for ex.: banks, state attorneys etc.)
“Problems of Byzantine generals” – in cryptology task of interaction of remote subscribers, which got orders from one centre. Part of subscribers, including centre, can be intruders. One united strategy of actions, which will be advantageous for subscribers, should be build up.
Topic: Byzantine Generals and the Blockchain (Read 129 times)
I was doing a WP translation and came across the term "Byzantine Fault Tolerance". Looking for the perfect translation of "fault tolerance" for this precise case I decided to understand it a bit better so I recurred to Wikipedia.
I found out that the term refers to a military problem in which some of the actors may be traitors and try to vote for the worst possible strategy trying to achieve a defeat.
https://en.wikipedia.org/wiki/Byzantine_fault_tolerance#Byzantine_Generals'_Problem
I think this offers a great insight on why a consensus algorithm is needed and just wanted to share it as an interesting 2 minute reading.
I found out that the term refers to a military problem in which some of the actors may be traitors and try to vote for the worst possible strategy trying to achieve a defeat.
https://en.wikipedia.org/wiki/Byzantine_fault_tolerance#Byzantine_Generals'_Problem
I think this offers a great insight on why a consensus algorithm is needed and just wanted to share it as an interesting 2 minute reading.
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