so you WHAT bitcoin does, and you HOW bitcoin does it. but do you know WHY?

This is to all your newbies apparently experts on bitcoin and its inefficient way it works.
Bitcoin's aim is to be DECENTRALIZED, which means it does not need an external authority.
you know how this works right? blockchain, SHA256 hashes, GPUs, and stuff. right? GOOD!

bitcoin is just a voting system, where 1 hash = 1 vote.
because bitcoin is decentralized, it haves some disadvantage, and some advantage, in order to be secure.

Disadvantages:
Anonymous, oh shit! no one can trace you. you can't have, 1 person = 1 vote.
Inefficient, consumes a lot of Watts
Relative slow, compared to centralized systems.

Advantages:
Anonymous, win! no one can trace you. you can have 1 person = x votes
Can not be shutdown, does not have a central authority, where you just can pull the plug.
irreversible, stuff can't be undone.
Anyone can join, multiple times.
no need to trust anyone with anything.

so because you can't proof that you are who you say you are, its getting hard to enforce the "1 person = 1 vote"-rule. instead bitcoin relies on something you can proof that you have(or have access to): computing power! and there for transforms the "1 person = 1 vote"-rule into "1 hash = 1 vote"-rule, a thing that can be enforced in a anonymous-distributed system. bitcoin is not trying to limit the number of votes, instead it gives everyone an amount of votes, based upon stuff you can proof that you have.
the system can't be based on something that requires a central authority to function, consider the example:
Anyone who is verifyed somehow can have a vote.
now ask the question: "who is verifying?" a company? government? some sort of central authority? ... what happen if its going rouge?

if bitcoin had a central authority, is would be a no better system then the current creditcard company based system. where a central authority determinds what is wrong and what is right. can we all know who this will turn out right?

so please to all you "experts" please think before you type.

(MODS: please sticky)

Topic: so you WHAT bitcoin does, and you HOW bitcoin does it. but do you know WHY? (Read 638 times)