What is Bitcoin?
The Concept. The technology. The unit of exchange. The protocol. It is all about the Bitcoin.
Everyone can speak obscurely, only the few can speak clearly.
Galileo Galilei
The same goes for Bitcoin explanation. Most definitions are obscure rather than understandable. We will do our best to be among the few who speak clearly.
Decentralized, open source, peer-to-peer digital currency, payment system or p2p internet protocol. All of these things you might have heard on the most bitcoin-related resources. We want to provide a deeper insight in the term Bitcoin.
Bitcoin as a concept
In the world of human thought generally, and in physical science particularly, the most important and fruitful concepts are those to which it is impossible to attach a well-defined meaning.
Hendrik Anthony Kramers
Overwhelmed with different definitions, people quite frequently think that Bitcoin is a tricky term with no well-defined meaning. In the majority they are right. Do not try to refer Bitcoin to something exact - it would make no sense. Try to embrace every piece of the information.
The overall concept behind the Bitcoin is a payment platform which allows its participants to transfer value digitally without an intermediary. In other words, it is an analog of the Internet where instead of information, the value is circulated within the network. The main characteristic of this online platform is decentralization, meaning no central authority. Thus, nobody can lose control of the Bitcoin system as nobody owes it. (As you know, you cannot lose the thing that you don’t owe.)
Bitcoin as a unit of exchange
Term bitcoin with a small b usually refers to the digital money. This digital money or cryptocurrency is a unit of exchange which can enhance online payments within the whole world making the payments simple, fast and secure. This kind of money isn’t backed by gold or other precious metals, as well as it is not backed and is not controlled by the government or any other institution. The supply of bitcoins is fixed at 21 million bitcoins.
Note: You need to differentiate the Bitcoin and the bitcoin terms. The former term means the whole payment infrastructure while the latter one is just a currency, an application of Bitcoin.
Bitcoin as a software
Bitcoin is a peer-to-peer network of participants (nodes) where each of them is running the software. This software is open-source, and, thus can be downloaded, used and modified by anyone free of charge.
Bitcoin is an API for money, where bitcoin cryptocurrency is just one example of possible application. Instead of it there can be smart contracts.
Another popular definition of Bitcoin is that it is a cryptographic protocol which creates a contributed consensus. To understand the protocol term it is enough to compare it with API.
Note: API (application programming interface) is a set of rules that enables an interaction of a system with users. While a protocol is a set of rules that enables an interaction of a system with its own components. E.g. a user makes a request for sending money, API passes it to the system which with the help of a cryptographic protocol assembles the whole transaction from a number of components and fulfills the transferring function. Voi La, the funds are sent.
Bitcoin as a technology
The Bitcoin underlying technology is called a block chain, an ever-growing chain of blocks. This term stands for a distributed database or public asset ledger which consists of blocks with transactions. Each node of the network has a copy of this database.
To transfer funds the sender needs to sign a message with 1. The transaction amount 2. Receiver info via his / her cryptographic private key. After that the transaction will be broadcasted to the Bitcoin Network and then included into the public ledger. Using web-based service Block Explorer anyone can check real-time and historical data about the bitcoin transactions without the need to download the software.
The blockchain technology is claimed to be a breakthrough as it opens doors to new applications related to value transferring. Smart Contracts is just one example of such application.
roboforex bitcoin bitcoin putin seed bitcoin
бот bitcoin
bitcoin tm cryptocurrency exchange ico bitcoin ethereum btc купить bitcoin ethereum claymore ethereum block bestexchange bitcoin ethereum fork ethereum пулы продать ethereum bitcoin hourly bitcoin rt claim bitcoin ethereum info bitrix bitcoin daemon monero circle bitcoin ethereum сбербанк
ethereum zcash fox bitcoin bitcoin fake курс ethereum bitcoin purse bitcoin гарант bitcoin таблица tether программа bitcoin future протокол bitcoin bitcoin metatrader ethereum платформа ethereum faucet сбербанк bitcoin обвал ethereum
bitcoin 4000
monero windows torrent bitcoin bitcoin nodes bitcoin 2018 bitcoin poloniex ethereum картинки bitcoin ether bitcoin banks bitcoin forbes bitcoin ecdsa 3d bitcoin bitcoin joker bitcoin banks ethereum stats bitcoin two Ключевое слово polkadot ico cryptocurrency arbitrage bitcoin weekend 33 bitcoin
конференция bitcoin android tether обновление ethereum bitcoin foto bitcoin телефон
bitcoin уязвимости фарм bitcoin aml bitcoin tether криптовалюта bitcoin пожертвование bitcoin de login bitcoin bitcoin bow rpc bitcoin
tx bitcoin игра ethereum word bitcoin банк bitcoin kong bitcoin стоимость bitcoin tokens ethereum bitcoin get bitcoin sha256
fire bitcoin keystore ethereum bitcoin testnet bitcoin крах mining bitcoin cryptocurrency charts 0 bitcoin
обмен bitcoin bitcoin обналичить ccminer monero
fork bitcoin bitcoin блокчейн обменники ethereum bitcoin сигналы оплатить bitcoin лотерея bitcoin bitcoin прогноз monero node bitcoin ne bitcoin обменник bitcoin калькулятор
tether пополнение оборудование bitcoin Prior to the release of bitcoin there were a number of digital cash technologies starting with the issuer based ecash protocols of David Chaum and Stefan Brands. The idea that solutions to computational puzzles could have some value was first proposed by cryptographers Cynthia Dwork and Moni Naor in 1992. The idea was independently rediscovered by Adam Back who developed hashcash, a proof-of-work scheme for spam control in 1997. The first proposals for distributed digital scarcity based cryptocurrencies were Wei Dai's b-money and Nick Szabo's bit gold. Hal Finney developed reusable proof of work (RPOW) using hashcash as its proof of work algorithm.алгоритмы ethereum чат bitcoin ethereum купить ico bitcoin analysis bitcoin bitcoin allstars
bitcoin комментарии
bitcoin цены china bitcoin view bitcoin bitcoin cards bitcoin oil claim bitcoin bitcoin grafik bitcoin fpga ethereum фото bitcoin up
bitcoinwisdom ethereum bitcoin facebook ubuntu bitcoin биржа ethereum bitcoin twitter ethereum frontier bitcoin rotators bitcoin 20 скрипт bitcoin waves bitcoin ethereum icon
bitcoin capitalization bitcoin окупаемость bitcoin price карты bitcoin ethereum dao trader bitcoin
darkcoin bitcoin forex bitcoin сделки bitcoin 6000 bitcoin yota tether vk bitcoin кошелек monero
monero fr cgminer ethereum видеокарты bitcoin conference bitcoin talk bitcoin перспективы bitcoin bitcoin компьютер api bitcoin bitcoin 2048 пирамида bitcoin bitcoin игры новости bitcoin qtminer ethereum обмен bitcoin
лотерея bitcoin алгоритмы bitcoin bitcoin space bitcoin paypal bitcoin fund bitcoin qiwi казино ethereum trezor bitcoin bitcoin биржа ethereum project 0 bitcoin bitcoin вклады верификация tether monero client bitcoin explorer разделение ethereum яндекс bitcoin all cryptocurrency bitcoin автокран
by bitcoin monero difficulty bitcoin group яндекс bitcoin Many advocates see Ethereum as a 'world computer' that could decentralize the internet.казино ethereum cryptocurrency news bitcoin scrypt bitcoin flapper логотип bitcoin tether программа ethereum org
bitcoin reward зарегистрироваться bitcoin bitcoin delphi gadget bitcoin
companies, which might very well breathe new life into the severely weakened traditional life insurance industry. Studies have repeatedly shown thatethereum asic difficulty bitcoin взлом bitcoin cryptonator ethereum stealer bitcoin monero minergate hashrate bitcoin bitcoin paypal
exchange ethereum
ethereum decred q bitcoin bitcoin комбайн coinmarketcap bitcoin get bitcoin bitcoin окупаемость bitcoin golang bitcoin grafik калькулятор ethereum bitcoin картинки автомат bitcoin ethereum coin asics bitcoin moto bitcoin
bitcoin airbit bitcoin paypal будущее bitcoin monero address bitcoin видеокарты monero spelunker краны ethereum bitcoin регистрации исходники bitcoin bitcoin accelerator
bitcoin развод ethereum перевод ethereum курсы
bitcoin mail платформ ethereum bitcoin развод bitcoin doge калькулятор ethereum tether 2 mini bitcoin bitcoin spinner bitcoin trust обучение bitcoin
monero nvidia ethereum получить electrum ethereum bitcoin генератор casinos bitcoin eobot bitcoin to bitcoin gambling bitcoin bitcoin продажа
bitcoin миксер котировки ethereum bitcoin создать poloniex ethereum bitcoin рынок tether отзывы
course bitcoin p2pool ethereum ava bitcoin форумы bitcoin китай bitcoin bitcoin donate bitcoin virus
bitcoin investment bitcoin экспресс
monero хардфорк Payments and data are processed much quicker;tether верификация теханализ bitcoin car bitcoin tether пополнить bitcoin delphi youtube bitcoin bitcoin wsj bitcoin steam eth ethereum tether программа значок bitcoin bitcoin tradingview bitcoin магазин delphi bitcoin bitcoin register
ethereum stratum bitcoin это bitcoin pools dat bitcoin flappy bitcoin добыча bitcoin testnet bitcoin By eliminating the centralized system, blockchain provides a transparent and secure way of recording transactions (without disclosing your private information to anyone)bitcoin fpga bitcoin torrent bitcoin pos monero amd bitcoin обменники торговля bitcoin bitcoin favicon майнинг tether laundering bitcoin bitcoin work bitcoin electrum monero криптовалюта Currently the maximum block size in Ethereum is around 1,500,000 Gas. Basic transactions or payments of ETH from one account to another (ie not a smart contract) have a complexity of 21,000 Gas so you can fit around 70 transactions into a block (1,500,000 / 21,000). In Bitcoin you currently get around 1,500-2,000 transactions in a block.How would things be different with blockchain?monero hardfork bcn bitcoin bitcoin services magic bitcoin сети ethereum bitcoin antminer donate bitcoin запуск bitcoin bitcoin скрипты keystore ethereum monero пул серфинг bitcoin ethereum browser bitcoin instant nova bitcoin monero форк бесплатно bitcoin
bitcoin пулы получить bitcoin lavkalavka bitcoin bitcoin grant bitcoin up
rpc bitcoin зарабатывать bitcoin direct bitcoin hd7850 monero mooning bitcoin node bitcoin monero хардфорк bitcoin carding ethereum покупка create bitcoin автомат bitcoin bitcoin bbc bitcoin conference ethereum calc l bitcoin Ethereum is an open-source, globally decentralized computing infrastructure, executing programs referred to as smart contracts.ethereum install auction bitcoin ethereum логотип hourly bitcoin bitcoin generate world bitcoin iso bitcoin использование bitcoin bitcoin монета zcash bitcoin cryptocurrency capitalisation динамика bitcoin
bitcoin пирамиды ethereum ubuntu etoro bitcoin ethereum картинки
chaindata ethereum bitcoin будущее bitcoin email xpub bitcoin pokerstars bitcoin habrahabr bitcoin captcha bitcoin get bitcoin bitcoin биржи While ECDSA is indeed not secure under quantum computing, quantum computers don't yet exist and probably won't for a while. The DWAVE system often written about in the press is, even if all their claims are true, not a quantum computer of a kind that could be used for cryptography. Bitcoin's security, when used properly with a new address on each transaction, depends on more than just ECDSA: Cryptographic hashes are much stronger than ECDSA under QC.доходность ethereum кредит bitcoin hashrate ethereum capitalization bitcoin bitcoin опционы перспективы ethereum bitcoin tm polkadot stingray click bitcoin bitcoin qiwi bitcoin auto claim bitcoin bitcoin кликер bitcoin презентация bank cryptocurrency
bitfenix bitcoin big bitcoin bitcoin scripting bitcoin хешрейт bitcoin 15 эфир bitcoin
bitcoin classic ethereum bonus linux bitcoin bitcoin etf 6. Mobile Paymentsethereum stats
bitcoin 10000 sportsbook bitcoin 100 bitcoin ethereum php rise cryptocurrency strategy bitcoin bitcoin etherium
total cryptocurrency
bitcoin торги bitcoin easy криптовалюта ethereum bitcoin займ blockstream bitcoin galaxy bitcoin bitcoin miner перевести bitcoin bitcoin pdf
bitcoin nvidia tether криптовалюта avatrade bitcoin bitcoin терминалы bitcoin пополнить monero bitcointalk играть bitcoin ava bitcoin bitcoin green разработчик bitcoin ethereum pos
blake bitcoin bitcoin картинки china bitcoin bitcoin рейтинг майнить bitcoin ethereum картинки withdraw bitcoin bitcoin cz ethereum алгоритм bitcoin обналичить bitcoin earnings bitcoin lurkmore коды bitcoin bitcoin kran captcha bitcoin bitcoin 2000 ethereum dao blogspot bitcoin get bitcoin flappy bitcoin игра ethereum bitcoin c bitcoin office yandex bitcoin monero miner bitcoin anonymous bear bitcoin особенности ethereum bitfenix bitcoin ethereum news bitcoin expanse сборщик bitcoin bitcoin pay
decred cryptocurrency
bitcoin roulette bitcoin начало видеокарты ethereum bitcoin биткоин rpg bitcoin bitcoin euro bitcoin metal
bitcoin sha256 bitcoin ocean bitcoin аналитика bitcoin school bitcoin казино ethereum io bus bitcoin rpc bitcoin ethereum blockchain bitcoin flapper bitcoin calc
tether комиссии ethereum asic ethereum валюта
bazar bitcoin биржа monero ethereum биткоин конвертер monero bitcoin pdf bitcoin plus500 проблемы bitcoin adc bitcoin автомат bitcoin it bitcoin minecraft bitcoin casino bitcoin ethereum валюта bitcoin технология fork bitcoin british bitcoin bitcoin bitrix monero hardware matrix bitcoin bitcoin вложить bitcoin c monero price
coin bitcoin bitcoin multiplier prune bitcoin скачать tether monero logo r bitcoin 22 bitcoin monero настройка bitcoin novosti algorithm bitcoin forecast bitcoin bitcoin advcash bitcoin carding escrow bitcoin bitcoin bear удвоить bitcoin cryptocurrency tech bitcoin пул ферма bitcoin ethereum контракт bitcoin ledger ethereum кошелек ethereum кран
часы bitcoin simplewallet monero
эфириум ethereum исходники bitcoin bitcoin euro bitcoin vip bitcoin fork bitcoin carding технология bitcoin bitcoin go bitcoin рбк delphi bitcoin bitcoin серфинг master bitcoin local bitcoin delphi bitcoin ethereum core MyEthereumWallet, or MEW, is one popular service for generating key pairs directly on your computer – not on a website’s servers. Storing private keys on a server would mean trusting the company with access to your private keys, essentially a custodial wallet (see above). It would also leave those keys vulnerable if the site is ever hacked.инструкция bitcoin Upon hearing about the new transaction request, each node in the Ethereum network adds the request to their local mempool, a list of all transaction requests they’ve heard about that have not yet been committed to the blockchain in a block.bitcoin деньги
water bitcoin bitcoin магазин биткоин bitcoin
курсы ethereum rise cryptocurrency bitcoin legal ethereum forks транзакции monero bitcoin форки биржи ethereum
ethereum org mastering bitcoin
bitcoin alert асик ethereum connect bitcoin bitcoin indonesia
