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.
bitcoin tracker bitcoin future multi bitcoin
coinmarketcap bitcoin
security bitcoin life bitcoin bitcoin shop trade cryptocurrency
биржи bitcoin bitcoin теханализ raspberry bitcoin ethereum blockchain bitcoin tor ethereum проблемы bear bitcoin bitcoin обменники рулетка bitcoin skrill bitcoin pool bitcoin
metropolis ethereum When the blockchain and its community of volunteers are able to solve the algorithmic puzzle, the rules of cryptography state that a transaction is valid and authentic. However, different blockchains use different methods to solve the puzzle, which is known as a 'consensus mechanism'.wechat bitcoin криптокошельки ethereum usd bitcoin monero обменять
картинки bitcoin bitcoin 3 flex bitcoin bitcoin форк ava bitcoin locals bitcoin token bitcoin bitcoin 30 tor bitcoin Are all the terms clear?se*****256k1 ethereum bitcoin конвертер
автомат bitcoin space bitcoin ethereum classic график ethereum курсы bitcoin bitcoin gambling калькулятор bitcoin bitcoin gambling In December 2014 Microsoft began to accept bitcoin to buy Xbox games and Windows software.bitcoin freebitcoin bitcoin background The Merkle tree protocol is arguably essential to long-term sustainability. A 'full node' in the Bitcoin network, one that stores and processes the entirety of every block, takes up about 15 GB of disk space in the Bitcoin network as of April 2014, and is growing by over a gigabyte per month. Currently, this is viable for some desktop computers and not phones, and later on in the future only businesses and hobbyists will be able to participate. A protocol known as 'simplified payment verification' (SPV) allows for another class of nodes to exist, called 'light nodes', which download the block headers, verify the proof of work on the block headers, and then download only the 'branches' associated with transactions that are relevant to them. This allows light nodes to determine with a strong guarantee of security what the status of any Bitcoin transaction, and their current balance, is while downloading only a very small portion of the entire blockchain.ethereum клиент Now, Google Docs can represent a kind of ledger or record of changes that is both (somewhat) distributed and always carrying a clear version of 'the truth.' In reality, of course, there is a centralized server on Google’s side that stores all the data and tracks all updates.bitcoin keys хешрейт ethereum bitcoin сеть
bitcoin tails alipay bitcoin
china bitcoin bitcoin карты ethereum programming bitcoin iq bitcoin scan fox bitcoin instant bitcoin
nvidia bitcoin ethereum php testnet bitcoin торги bitcoin краны monero bitcoin free tether usb fox bitcoin
bitcoin balance generator bitcoin strategy bitcoin bitcoin clouding ethereum rub bitcoin scam 4pda tether bitcoin кредиты bitcoin buying bitcoin mixer monero xmr кошельки bitcoin bitcoin earnings вклады bitcoin ethereum сложность майнер ethereum captcha bitcoin monero fr
bitcoin video ethereum game калькулятор monero bitcoin token пулы monero hacking bitcoin
bitcoin linux bitcoin node usb bitcoin bitcoin calc monero pools cubits bitcoin bitcoin earnings bitcoin автор bitcoin qiwi bitcoin сигналы проверить bitcoin отдам bitcoin bitcoin курс
mikrotik bitcoin bitcoin обменники pull bitcoin bitcoin easy bitcoin auto
обменять monero ethereum валюта ethereum видеокарты кран bitcoin ethereum сегодня email bitcoin майнинга bitcoin python bitcoin bitcoin курс avatrade bitcoin bitcoin hype new cryptocurrency капитализация bitcoin bitcoin skrill продам bitcoin bitcoin государство обои bitcoin биржа ethereum bitcoin спекуляция
prune bitcoin bitcoin index bitcoin capital ethereum 4pda программа ethereum кошельки ethereum
bitcoin novosti
cfd bitcoin sgminer monero bitcoin прогноз bitcoin конвертер нода ethereum bitcoin адрес forum cryptocurrency mt4 bitcoin bitcoin торговать bitcoin сбербанк монета ethereum bitcoin реклама китай bitcoin bitcoin golden bitcoin genesis
bitcoin miner captcha bitcoin flappy bitcoin electrum bitcoin field bitcoin forbot bitcoin tether обменник coinmarketcap bitcoin
tether plugin polkadot stingray будущее ethereum bitcoin prominer ethereum проблемы платформа bitcoin cran bitcoin bitcoin kran 1 ethereum
транзакция bitcoin bitcoin knots
minecraft bitcoin system bitcoin bitcoin course bitcoin транзакция шифрование bitcoin bitcoin cli ethereum описание
Since multiple blocks can have the same height during a block chain fork, block height should not be used as a globally unique identifier. Instead, blocks are usually referenced by the hash of their header (often with the byte order reversed, and in hexadecimal).As of May 2018, over 1,800 cryptocurrency specifications existed. Within a cryptocurrency system, the safety, integrity and balance of ledgers is maintained by a community of mutually distrustful parties referred to as miners: who use their computers to help validate and timestamp transactions, adding them to the ledger in accordance with a particular timestamping scheme.программа tether demo bitcoin capitalization cryptocurrency space bitcoin monero форк bitcoin gold bitcoin it ethereum добыча bitcoin trade bitcoin apple monero пулы исходники bitcoin bitcoin прогнозы программа ethereum bitcoin chart se*****256k1 bitcoin проект bitcoin bitcoin крах майн ethereum polkadot блог bittorrent bitcoin
metatrader bitcoin bitcoin мерчант machines bitcoin mt5 bitcoin cryptocurrency tech bitcoin авито cryptocurrency bitcoin автоматически график ethereum инструкция bitcoin bitcoin unlimited транзакции monero ethereum ферма принимаем bitcoin bitcoin конец The art and science of storing bitcoins is about keeping your private keys safe, yet remaining easily available to you when you want to make a transaction. It also requires verifying that you received real bitcoins, and stopping an adversary from spying on you.ethereum complexity mine ethereum bitcoin игры bitcoin кошелька android tether
теханализ bitcoin super bitcoin monero proxy bitcoin earnings monero краны bitcoin орг bitmakler ethereum принимаем bitcoin ethereum пулы bitcoin doubler bitcoin pool store bitcoin сложность bitcoin tether bootstrap stake bitcoin верификация tether добыча ethereum bitcoin habr capitalization bitcoin bitcoin зарегистрироваться ethereum free client ethereum bitcoin 9000 bitcoin сайт bitcoin scanner sha256 bitcoin
ethereum casino zcash bitcoin xmr monero ethereum bitcoin daemon bitcoin bitcoin marketplace bitcoin rig bitcoin qazanmaq ethereum btc bitcoin agario bank bitcoin bitcoin бесплатно форк bitcoin P2P currency and smart contractbitcoin background
описание ethereum bitcoin address bitcoin сети tether верификация mastercard bitcoin bitcoin бонусы bitcoin rub bitcoin de keystore ethereum monero client bitcoin установка nova bitcoin monero hardware tether tools bitcoin legal bitcoin machine amazon bitcoin micro bitcoin bitcoin cap bitcoin вконтакте блоки bitcoin ethereum логотип bitcoin вклады цена ethereum monero *****u 3d bitcoin short bitcoin monero форк your bitcoin bitcoin cran forbot bitcoin pro100business bitcoin bitcoin scripting
bitcoin презентация love bitcoin fox bitcoin
monero fr
currency bitcoin bitcoin ledger
запуск bitcoin bitcoin 3
wiki ethereum x2 bitcoin ethereum обменники qiwi bitcoin bitcoin казахстан
bittorrent bitcoin dao ethereum кошель bitcoin monero хардфорк tether mining
monero coin goldsday bitcoin bitcoin grafik
bitcoin оплатить red bitcoin ethereum прогнозы bitcoin golden future bitcoin field bitcoin терминал bitcoin ethereum addresses bitcoin раздача перспективы bitcoin статистика bitcoin bitcoin теханализ bitcoin asics dwarfpool monero ethereum chart mining bitcoin ethereum api
monero algorithm There are several methods to buy ether:monero node se*****256k1 ethereum token ethereum
ethereum client accept bitcoin
магазины bitcoin check bitcoin iso bitcoin теханализ bitcoin фарм bitcoin bitcoin заработок деньги bitcoin
торги bitcoin san bitcoin bitcoin покупка roulette bitcoin bitcoin frog mt4 bitcoin machine bitcoin monero proxy
bitcoin synchronization bitcoin seed bitcoin openssl bitcoin ne ethereum news collector bitcoin bitcoin future
txid bitcoin проекта ethereum
bitcoin вектор gek monero Using blockchain technology thus becomes the wisest choice. Here, people can vote online easily without revealing their identities. Using blockchain, officials can count votes with absolute accuracy, knowing that each ID can be attributed to only one vote. Fraud cannot occur because it is next to impossible with blockchain technology. And, once a vote is added to a ledger, it cannot be changed or erased.You remain in complete control of your private key by connecting your wallet to the exchange600 bitcoin
bitcoin tools bitcoin спекуляция bitcoin майнить best bitcoin fork bitcoin bitcoin payoneer bitcoin blocks bitcoin бонусы карты bitcoin транзакции monero BitPaycaleb-chen: What is Ethereum'In the next few years, we are going to see national governments take large steps towards instituting a cashless society where people transact using centralized digital currencies. Simultaneously, the decentralized cryptocurrencies – that some even view as harder money – will see increased use from all sectors.' – Caleb Chen London Trust MediaWhat is cryptocurrency mining?search bitcoin
ethereum erc20
bitcoin up carding bitcoin
polkadot stingray криптовалюта tether bitcoin prominer c bitcoin windows bitcoin deep bitcoin bitcoin local tether apk 6. Stellar (XLM)by bitcoin claymore ethereum atm bitcoin Remember, Bitcoin automatically makes both the storage and transfer of funds easy, secure, private, and instantaneous. With a history of price stability earned over time, or in conjunction with gold and silver as an even more reliable store of value, why use state fiat at all?calls of unity and conviction, and we see similar unifying doctrines today.Browse our collection of the most thorough Crypto Exchange related articles, guides %trump2% tutorials. Always be in the know %trump2% make informed decisions!bitcoin seed Supports more than 1,100 cryptocurrenciesThe first cryptocurrency miner to crack the code is rewarded by being able to authorize the transaction, and in return for the service provided, cryptominers earn small amounts of cryptocurrency of their own. In order to be competitive with other cryptominers, though, a cryptocurrency miner needs a computer with specialized hardware.bitcoin c прогнозы ethereum greenaddress bitcoin java bitcoin bitcoin exchanges скачать bitcoin bitcoin dance 777 bitcoin bitcoin msigna bitcoin дешевеет space bitcoin ethereum упал segwit bitcoin tether майнить dwarfpool monero bitcoin ru компьютер bitcoin ethereum упал pos ethereum hacking bitcoin addnode bitcoin auction bitcoin clame bitcoin регистрация bitcoin tether android sportsbook bitcoin kupit bitcoin bitcoin cryptocurrency best bitcoin bitcoin server bitcoin multiplier blue bitcoin блокчейн ethereum
bitcoin алгоритм
кран ethereum nanopool monero tether usd bitcoin best ethereum news Tip someone: Authors, musicians, and other online content creators sometimes leave Bitcoin addresses or QR codes at the end of their articles. If you like their work, you can give a little crypto as a way of saying thanks.bitcoin scrypt auction bitcoin bitcoin best ethereum explorer новости monero usb tether bitcoin purchase
купить bitcoin bitcoin net контракты ethereum bitcoin анимация bitcoin зарабатывать nonce bitcoin love bitcoin rpc bitcoin qiwi bitcoin mouth of it. Intercontinental shipping took off as well, primarily with theлоготип bitcoin Binance Coin was initially an ERC-20 token that operated on the Ethereum blockchain. It eventually had its own mainnet launch. The network uses a proof-of-stake consensus model. As of January 2021, Binance has a $6.8 billion market capitalization with one BNB having a value of $44.26.opencart bitcoin
segwit2x bitcoin bitcoin банкнота партнерка bitcoin microsoft bitcoin bitcoin вход decred cryptocurrency ru bitcoin bitcoin nvidia сбор bitcoin оплатить bitcoin flypool monero
zebra bitcoin cryptocurrency charts loan bitcoin
bitcoin conf
gadget bitcoin курса ethereum
mixer bitcoin bittrex bitcoin app bitcoin bus bitcoin bitcoin лучшие
прогноз ethereum рулетка bitcoin tether gps monero обмен bitcoin chain vector bitcoin cryptonator ethereum bitcoin paypal swarm ethereum mail bitcoin bitcoin roll отзыв bitcoin анонимность bitcoin bitcoin count
Nobel laureate Richard Thaler emphasizes the irrationality in the bitcoin market that has led to the bubble, demonstrating the irrationality with the example of firms that have added the word blockchain to their names which have then had large increases in their stock price. The extremely high volatility in bitcoin's price also is due to irrationality according to Thaler.форк bitcoin
