The Definition of Bitcoin and the Terms in Bitcoin
What is the meaning of Bitcoin? Many people do not know what Bitcoin is yet.
Then, wondering what Bitcoin is like.
When I say that Bitcoin is about money, people start coming to me, then ask how to use Bitcoin on the Internet.
I am confused, why? When I say about money, they come. When I answer them about "Making Articles", they are not interested.
Apparently, there are still many people who need money in this world. Ha ha. So also with me, because I also need money to buy a new laptop.
Well, what is Bitcoin? What are the terms used when playing Bitcoin on the Internet?
Bitcoin is an electronic money made by Satoshi Nakamoto in 2009.
The bitcoin name itself is associated with an open source software designed by Satoshi himself, where it works using a peer-to-peer network in the absence of centralized storage or a single administrator.
In the United States, Bitcoin is called a Decentralization currency.
However, Bitcoin differs from the common currency, because Bitcoin is not dependent on major publishers, and Bitcoin uses a distributed database, then spreads it to nodes on a P2P network to a transaction journal using cryptography to provide basic security functions.
Bitcoin can only be spent by the owner and bitcoin can not be done more than once.
Bitcoin Design
- Bitcoin permits its owner without the use of identity or anonymous and transfer of wealth
- Bitcoin can also be stored on a personal computer using a wallet file format or on a third party wallet service
- Bitcoin can also be sent via the Internet to anyone using bitcoin addresses
The typology of peer-to-peer Bitcoin and the lack of a single administration make Bitcoin impossible for any authority or command so as to manipulate it from Bitcoin it will be the cause of inflation with more Bitcoin production.
Bitcoin is also an implementation of CryptoCurrency which was first described by Wei Dai around 1998 in releasing a Cypherounks.
BitCoin relies more on the number of transfers between public accounts using public key cryptography. And on all open transactions are used for public and stored in a distributed database.
BitCoin Network
The Bitcoin network used to implement a distributed time server is to use the idea of proofreader chain.
Why? Because, then, the entire history of the transaction will be stored properly in the database. To reduce the size of the storage area use a Markle tree.
Technicians from Bitcoin themselves are a peer-to-peer implementation on a proposal by Nick Szabo; while the principle on the system has been generally described by Satoshi Nakamoto in 2008.
The delivery of Bitcoin is of course structured, ie someone participating in the Bitcoin network must have a wallet that stores some keypair critography.
Bitcoin public key or address that acts as the final destination or Endopoint will send or receive on all payments.
In the corresponding private key only allows the payment to the user itself. Because the address does not contain any information about the owner. The address of bitcoin in human readable format consists only of random and long letters with about 33 characters in the format "1Ypl3145EGa59rY9KU **************".
Bitcoin Regeneration
For the use of Bitcoin, can have many addresses. And in fact, those addresses can regenerate by creating new addresses without any limitations, as creating new addresses should be done immediately, such as making public or private with new key pairs.
This creation also does not require any nodes in the network. And to create a single purpose or use of a single address can help anonymous users.
The bitcoin transaction contains the current public key or owner address. For example, when user 1 sends a value to user 2, then user 1 will release their ownership value by adding the address or public key of user 2 to the coin and sign it with its own private key.
Then user 2 will broadcast Bitcoin into an appropriate message. This is called transaki Bitcoin.
Thereafter in the peer-to-peer network the remainder of the network node will validate the certographic signature with the appropriate number of transactions before accepting it.
Inside Bitcoin there is also the term chain-block, where this chain has 3 colors of different types. That is, the black or the main chain which is the longest series that started from the green chain block (head of the block). While the color purple means not proprietary, because out of the main chain.
Transactions that are broadcast to other nodes do not directly become official, but wait until they are recognized on the time list that all the transactions have been stamped and this is called the block-change.
It comes from a running system to prevent multiple expenses or forgery.
Bitcoin Mechanism
At any given time, the generating node collects an unrecognized transaction but is known by a candidate block.
After that the node will try to generate a cryptographic hash behind a certain character, and a business that does require a predictable value from a trial repetition and error.
When a node finds a solution, it will announce it on all networks. And network members will receive new blocks that have been solved by validating before receiving as well as then adding to the chain.
That way, the block chain will contain the cryptographic history of ownership of all coins originally from within the current address-holder.
So to reuse, the network will reject the transaction.
If you ask how the production of Bitcoin? That is, the Bitcoin network will randomly create and distribute a new set of Bitcoins six times an hour to someone running the software using the option.
So it will generate the selected coin, because each user has the potential to accept and execute the option.
Techniques to Get Money from Bitcoin
Producing Bitcoin is also called mining, it is the same as gold mining. Because with the probability of the user will be likely to receive a collection that depends on the computing power distributed on the network.
In other words the network will also be associated with a network of computing power forces at all nodes.
At each set, the amount of Bitcoin is not more than 50 BTC, and for the time of appreciation is programmed to no less up to zero, so there will be no more 21 Bitcoin in the program.
If the payment is reduced then the motive on the user is expected to be able to change to get the transaction fee.
The legality of bitcoin usage actually changes around the world quickly, this is because there are some countries that limit the number of bitcoins, as in China.