Topic: How Does Bitcoin Work? (Read 1374 times)

Here are two pages you could and should read, to get a brief non-technical idea on how bitcoin works.

https://en.bitcoin.it/wiki/Introduction
http://www.coindesk.com/information/

Probably. Maybe it was added afterwards? But as of now, 3/7 claim that bitcoin isn't working, whereas 4/7 say it works 'easy'. Messed up

What the? I didn't even notice the poll. Is this some sort of troll attempt?

All the people actually answering this question should be considering that they're wasting their time. A poll 'How does Bitcoin work?' with the possible answers 'easy' and 'no'... A classic!

1. Inform yourself
2. Choose your wallet
3. Get bitcoins
4. Spend bitcoins 

https://bitcoin.org/en/getting-started

Search in google: bitcoin tutorial

via Imgflip Meme Maker

Bitcoins are completely virtual coins designed to be 'self-contained' for their value, with no need for banks to move and store the money. Once you own bitcoins, they behave like physical gold coins: they possess value and trade just as if they were nuggets of gold in your pocket.  You can use your bitcoins to purchase goods and services online, or you can tuck them away and hope that their value increases over the years.

Not exactly relevant to bitcoin, but it's been implemented before: http://www.blug.linux.no/rfc1149/writeup.html

However, the ping time sucks.

If you're planning on implementing it, take a look at RFC 2549. It's still experimental, but it adds QoS, which is quite useful.

HAHAHHAHHAHA I've sited that RFC in many conversations

check this one

https://www.sigcon.com/Pubs/edn/SoGoodBarbedWire.htm

https://www.youtube.com/watch?v=LP3amXkjvPg

I don't know why I laughed so hard at this poll. What do you mean "no"? Is that an answer to a "how" question? Or did you mean "easy" "not easy" to understand? Anyways, look at the whitepaper. I feel like everybody links different sources but not many people link to the original white paper, written by satoshi himself. It's really good. https://bitcoin.org/bitcoin.pdf

How does Bitcoin work?
This is a question that often causes confusion. Here's a quick explanation!

The basics for a new user
As a new user, you can get started with Bitcoin without understanding the technical details. Once you have installed a Bitcoin wallet on your computer or mobile phone, it will generate your first Bitcoin address and you can create more whenever you need one. You can disclose your addresses to your friends so that they can pay you or vice versa. In fact, this is pretty similar to how email works, except that Bitcoin addresses should only be used once.


Bitcoin

Balances - block chain
The block chain is a shared public ledger on which the entire Bitcoin network relies. All confirmed transactions are included in the block chain. This way, Bitcoin wallets can calculate their spendable balance and new transactions can be verified to be spending bitcoins that are actually owned by the spender. The integrity and the chronological order of the block chain are enforced with cryptography.

Transactions - private keys
A transaction is a transfer of value between Bitcoin wallets that gets included in the block chain. Bitcoin wallets keep a secret piece of data called a private key or seed, which is used to sign transactions, providing a mathematical proof that they have come from the owner of the wallet. The signature also prevents the transaction from being altered by anybody once it has been issued. All transactions are broadcast between users and usually begin to be confirmed by the network in the following 10 minutes, through a process called mining.

Processing - mining
Mining is a distributed consensus system that is used to confirm waiting transactions by including them in the block chain. It enforces a chronological order in the block chain, protects the neutrality of the network, and allows different computers to agree on the state of the system. To be confirmed, transactions must be packed in a block that fits very strict cryptographic rules that will be verified by the network. These rules prevent previous blocks from being modified because doing so would invalidate all following blocks. Mining also creates the equivalent of a competitive lottery that prevents any individual from easily adding new blocks consecutively in the block chain. This way, no individuals can control what is included in the block chain or replace parts of the block chain to roll back their own spends.

How Does Bitcoin Work?
Bitcoin is "Magic Internet Money", so it just works.  

Seriously here:
"This is a question that often causes confusion. Here's a quick explanation!"
https://bitcoin.org/en/how-it-works

I good explanation of how bitcoin works can be found here: RFC 1149

How Does Bitcoin Work?