Bitcoin is a global, digital currency/comodity hybrid.
It is the world's first global, digital currency.
It is basically a public transaction record supported by massive computing power.
Topic: "What is Bitcoin" for beginners - A simple non technical explanation (Read 1287 times)
January 25, 2014, 05:34:19 AM
January 24, 2014, 10:00:04 PM
Quote
Private keys are what you need to keep safe but what is actually worth is the balance you have on the corresponding bitcoin address.
But, you can't really separate the value of the BTC assigned to an address from the private key needed to access them.
Maybe public addresses are like safety drop boxes. You can drop stuff in, but you can't take it out. Only the owner of the drop box has the (private) key to open it and use what has been dropped inside.
January 24, 2014, 02:09:37 PM
Regarding the detailed explanation I think that might be a bit too much for new users.
Maybe you can say it with less words but there is nothing really complicated about it and it can make a big difference in terms of bitcoin understanding. I wonder why I am always the only one insisting on this point...
Bitcoin addresses are actually not created out of thin air. In a sense all of them already exist. You just pick a random private key (256 bits) and find out the corresponding bitcoin address. From then on you know the private key of that bitcoin address and can access its coins.
Private keys are worth as much as a key to a door/locker. It is what is inside that matters. Having the keys means you can claim ownership and use what is inside.
But I don't agree with people that say that private keys are what is worth. Private keys are what you need to keep safe but what is actually worth is the balance you have on the corresponding bitcoin address. It's different, so please don't confuse people that are already confused with misleading statements.
January 23, 2014, 12:06:05 PM
Quote
I disagree that a bitcoin wallet is a bitcoin address.
Actually a bitcoin wallet can manage multiple addresses and other information.
See: https://en.bitcoin.it/wiki/Wallet
You are absolutely correct and I'm fixing this as we speak.Actually a bitcoin wallet can manage multiple addresses and other information.
See: https://en.bitcoin.it/wiki/Wallet
Regarding the detailed explanation I think that might be a bit too much for new userse.
January 23, 2014, 10:53:55 AM
I disagree that a bitcoin wallet is a bitcoin address.
Actually a bitcoin wallet can manage multiple addresses and other information.
See: https://en.bitcoin.it/wiki/Wallet
But the video is fine as an introduction.
I think it just could explain a bit more the relation between private key and bitcoin address. Namely that:
"A private key is a secret code which allows the user to prove his ownership of his Bitcoins. Every Bitcoin address has a matching private key, which is saved in the wallet file of the person who owns the balance. The private key is mathematically related to the Bitcoin address, and is designed so that the Bitcoin address can be calculated from the private key, but importantly, the same cannot be done in reverse."
Explaining how to generate a bitcoin address from a random private key seems to me that would be helpful and important to explain in a simple introduction to bitcoin.
Actually a bitcoin wallet can manage multiple addresses and other information.
See: https://en.bitcoin.it/wiki/Wallet
But the video is fine as an introduction.
I think it just could explain a bit more the relation between private key and bitcoin address. Namely that:
"A private key is a secret code which allows the user to prove his ownership of his Bitcoins. Every Bitcoin address has a matching private key, which is saved in the wallet file of the person who owns the balance. The private key is mathematically related to the Bitcoin address, and is designed so that the Bitcoin address can be calculated from the private key, but importantly, the same cannot be done in reverse."
Explaining how to generate a bitcoin address from a random private key seems to me that would be helpful and important to explain in a simple introduction to bitcoin.
January 23, 2014, 10:35:00 AM
I know it's a bit over simplified but I hope it will get the job done 
Watch it on YouTube.
BTW - Anyway I can embed it in the forum post ?
Watch it on YouTube.
BTW - Anyway I can embed it in the forum post ?
Jump to: