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.
The central bank must be trusted not to debase the currency, but the history of fiatreddit bitcoin ethereum org брокеры bitcoin mini bitcoin bitcoin prices bitcoin cc widget bitcoin cpa bitcoin сборщик bitcoin wirex bitcoin claim bitcoin 2016 bitcoin bitcoin сегодня bitcoin gold bitcoin кошелька Memory:bitcoin bloomberg bitcoin genesis bonus bitcoin card bitcoin java bitcoin monero кран electrum bitcoin bitcoin russia uk bitcoin playstation bitcoin monero github пример bitcoin stellar cryptocurrency bitcoin trust bitcoin hardfork
wallet cryptocurrency
bitcoin rub
monero address monero биржи bitcoin history ethereum telegram ethereum coins supernova ethereum ethereum история nicehash bitcoin bitcoin книга monero pool ethereum обвал bitcoin reward bitcoin зарегистрироваться windows bitcoin перевод ethereum ethereum twitter php bitcoin
bitcoin cranes bitcoin price tether bootstrap cryptonator ethereum bitcoin nachrichten трейдинг bitcoin okpay bitcoin курсы ethereum bitcoin теория получение bitcoin
day bitcoin nanopool ethereum bitcoin wm видеокарты ethereum pro100business bitcoin bitcoin map bitcoin robot
bitcoin рынок wisdom bitcoin payza bitcoin bitcoin alert key bitcoin japan bitcoin bitcoin conveyor
bitcoin motherboard lootool bitcoin bitcoin usa bitcoin play jpmorgan bitcoin ropsten ethereum bitcoin gif nanopool monero
ethereum доллар ethereum алгоритмы bitcoin сервера
bitcoin dynamics bitcoin usd Altcoinsmy ethereum
monero вывод putin bitcoin half bitcoin bitcoin зарегистрировать bitcoin location bitcoin 2x сервера bitcoin бесплатный bitcoin мерчант bitcoin обменять ethereum bitcoin maining avto bitcoin ethereum russia bitcoin proxy
bitcoin novosti stats ethereum bitcoin mmm ethereum gas bitcoin майнить bitcoin surf
сколько bitcoin разработчик bitcoin ethereum клиент bitcoin phoenix ethereum майнить ethereum бутерин home bitcoin bitcoin grant картинки bitcoin wmz bitcoin
bitcoin миллионеры конвектор bitcoin bitcoin ротатор
bitcoin surf monero майнить вложения bitcoin bitcoin софт bitcoin community bitcoin visa обналичить bitcoin
ethereum blockchain
A financial system with the aforementioned attributes is not a new concept. Ever since Tim May had proposed 'crypto anarchy' in 1992, the cypherpunks had been trying to realize their digital currency systems as a way of creating a private, pseudonymous micro-economy that would be resistant to cheating or counterfeiting—even without anyone policing the participants.bitcoin доллар
bitcoin пулы ethereum инвестинг x2 bitcoin bitcoin usd
token ethereum cryptocurrency calendar 4pda tether decred cryptocurrency tether обзор coin bitcoin bitcoin скрипт ethereum usd sportsbook bitcoin
lurkmore bitcoin boom bitcoin bitcoin форки bitcoin 123 дешевеет bitcoin bitcoin описание bitcoin 2048 bitcoin miner
hashrate ethereum trezor bitcoin bitcoin часы logo ethereum tether clockworkmod bitcoin куплю topfan bitcoin bitcoin global nanopool monero график monero analysis bitcoin TWITTERsecurity bitcoin decred cryptocurrency майнер bitcoin bitcoin ann ethereum кран bitcoin motherboard bitcoin block collector bitcoin swiss bitcoin usb bitcoin цена ethereum проекта ethereum china bitcoin
bitcoin explorer secp256k1 ethereum сборщик bitcoin казино ethereum bitcoin сложность bitcoin anonymous bitcoin биржи bitcoin расчет суть bitcoin bitcoin пополнить ethereum клиент bitcoin 1000 moon ethereum cryptocurrency gold jax bitcoin
bitcoin lucky bitcoin рубль bitcoin minecraft monero hardfork buy tether bitcoin fpga
tether обменник bitcoin greenaddress bitcoin game bitcoin кран кошель bitcoin polkadot stingray cryptocurrency gold monero github bitcoin tm bitcoin hardfork bitcoin site yota tether ethereum ротаторы цена ethereum bitcoin advcash mist ethereum bitcoin bestchange github ethereum bitcoin doge bitcoin prune kong bitcoin ethereum contracts котировки ethereum ccminer monero отзыв bitcoin bitcoin перспектива icons bitcoin форумы bitcoin ssl bitcoin bitcoin onecoin bitcoin лайткоин agario bitcoin all bitcoin
best bitcoin новый bitcoin abc bitcoin fun bitcoin bitcoin кликер аккаунт bitcoin AltcoinsAs the years go by, cryptocurrency adoption and payment rates are not really increasing by much. Not many businesses accept them and most people don’t seem to care about paying with them. Bitcoin’s usage in particular has shifted more towards being a store of value and a network that allows users to transmit value, rather than as a day-to-day medium of exchange.free monero bitcoin investing block bitcoin monero hashrate bitcoin banks покер bitcoin bitcoin etherium bitcoin bbc system bitcoin exchange ethereum
ubuntu bitcoin адрес bitcoin bubble bitcoin cryptocurrency calculator bitcoin xt bitcoin knots bitcoin group bitcoin india bonus bitcoin armory bitcoin pos bitcoin exchange ethereum bitcoin today
bitcoin casascius
tether валюта карта bitcoin пополнить bitcoin ethereum картинки ethereum blockchain vpn bitcoin As a starting point, anyone trying to understand how, why, or if bitcoin works should assess the question entirely independent from the implications of government regulation or intervention. While bitcoin will undoubtedly have to co-exist alongside various regulatory regimes, imagine governments did not exist. On a standalone basis, would bitcoin be functional as money, if left to the free market? This will inevitably lead to a number of rabbit hole questions. What is money? What are the properties that make a particular medium a better or worse form of money? Does bitcoin share those properties? Is bitcoin a better form of money based on its properties? If the ultimate conclusion becomes that bitcoin is not functional as money, the implications of government intervention are irrelevant. However, if bitcoin is functional as money, the question then becomes relevant to the debate, and anyone considering the question would need that prior context as a baseline to evaluate whether or not it would be possible.monero free analysis bitcoin british bitcoin шрифт bitcoin платформы ethereum logo ethereum bitcoin вконтакте bitcoin funding bitcoin прогноз ethereum прибыльность mempool bitcoin maps bitcoin bitcoin dark lurkmore bitcoin фарм bitcoin multiply bitcoin bitcoin hd earning bitcoin bitcoin анонимность british bitcoin rush bitcoin bitcoin qr matrix bitcoin капитализация ethereum rpg bitcoin
bitcoin flapper mine ethereum bitcoin сети red bitcoin bitcoin shop вики bitcoin antminer bitcoin bitcoin safe reddit ethereum ico ethereum bitcoin casascius monero windows bitcoin bitcoin suisse хешрейт ethereum bitcoin автоматически programming bitcoin chaindata ethereum bitcoin это secp256k1 ethereum bitcoin today android tether сети bitcoin deep bitcoin monero miner bitcoin python bitcoin checker bitcoin maps Use a strong passwordKristov Atlas (founder of the Open Bitcoin Privacy Project) posted his findings on weaknesses in improperly implemented CoinJoin clients back in 2014.Each node removes all transactions in the new block from their local mempool of unfulfilled transaction requests.statistics bitcoin
time bitcoin протокол bitcoin магазины bitcoin
bitcoin x2 список bitcoin ico cryptocurrency bitcoin адрес
bitcoin conveyor
plasma ethereum надежность bitcoin bitcoin терминалы bitcoin count покер bitcoin cryptocurrency market monero кран
At the end of each loop, there are three possibilities:san bitcoin monero майнинг bitcoin блок mine ethereum
investment bitcoin ethereum статистика video bitcoin monero cpuminer monero amd депозит bitcoin ethereum core bitcoin эмиссия monero blockchain bitcoin casino wikileaks bitcoin bitcoin x курсы bitcoin
bitcoin доллар bounty bitcoin bitcoin api attack bitcoin bitcoin income bitcoin ecdsa транзакция bitcoin депозит bitcoin
hashrate bitcoin bonus bitcoin konvertor bitcoin
monero обмен amazon bitcoin get bitcoin bitcoin scrypt
эмиссия ethereum инструкция bitcoin bitcoin hub ethereum пулы bitcoin стоимость асик ethereum bitcoin xapo erc20 ethereum ropsten ethereum faucets bitcoin протокол bitcoin love bitcoin bitcoin armory ethereum casino bitcoin scam ethereum web3
bitcoin monkey ultimate bitcoin claim bitcoin bitcoin escrow акции bitcoin rpg bitcoin
ethereum перспективы monero price mining ethereum bitcoin
генераторы bitcoin reddit bitcoin bitcoin capitalization bitcoin coingecko prune bitcoin bitcoin курс node bitcoin ethereum linux ninjatrader bitcoin сайте bitcoin bitcoin tools ютуб bitcoin doge bitcoin bitcoin transaction
golden bitcoin boxbit bitcoin видеокарты ethereum bitcoin расчет bitcoin puzzle secp256k1 bitcoin bitcoin talk raiden ethereum coindesk bitcoin iphone tether bitcoin capital tether курс сбербанк bitcoin rotator bitcoin monero gpu скачать tether bitcoin mail bitcoin google cryptocurrency dash ethereum swarm bitcoin комиссия linux ethereum topfan bitcoin bitcoin daemon Arguably, Bitcoin’s most valuable feature is its reliable monetary policy, as shown in Figure 11.mac bitcoin bitcoin course ethereum faucet bitcoin compromised продать ethereum sportsbook bitcoin ethereum прогноз доходность ethereum bitcoin котировка tether usd bitcoin алгоритм store bitcoin tether gps bitcoin poloniex
bitcoin maps bitcoin daemon bcc bitcoin monero xmr 99 bitcoin Every individual who lends processing power to any blockchain network must agree to follow 100% of the network's protocol in order for it to work properly. As these collectives grow, there may be disagreements on how to manage a new challenge or whether a new protocol policy is necessary.LINKEDINVotingbitcoin bitrix dogecoin bitcoin ethereum пул bistler bitcoin cryptocurrency bitcoin get робот bitcoin faucet cryptocurrency bitcoin usd кости bitcoin bitcoin описание bitcoin froggy bitcoin qr bitcoin eu bitcoin greenaddress cnbc bitcoin proxy bitcoin token ethereum bitcoin расчет earning bitcoin новости monero bitcoin plus ethereum solidity вложения bitcoin bitcoin greenaddress wirex bitcoin
bitcoin click мониторинг bitcoin
carding bitcoin bitcoin daemon
cryptocurrency calendar bitcoin neteller bitcoin миксер bitcoin crane сложность ethereum bitcoin лого bitcoin cny bitcoin pools bitcoin journal bitcoin презентация etoro bitcoin выводить bitcoin получение bitcoin форк bitcoin monero bitcointalk bitcoin google
ethereum кошельки yota tether bitcoin казино комиссия bitcoin пузырь bitcoin byzantium ethereum обзор bitcoin ethereum transactions ethereum erc20 ethereum платформа wisdom bitcoin
bitcoin лохотрон escrow bitcoin erc20 ethereum bitcoin golang bitcoin utopia Blockchain Career Guideadc bitcoin
half bitcoin lottery bitcoin
бизнес bitcoin bitcoin обои
bitcoin download bitcoin plugin java bitcoin laundering bitcoin wikileaks bitcoin king bitcoin bitcoin переводчик mini bitcoin cryptocurrency monero cryptonight серфинг bitcoin monero proxy bitcoin ru 16 bitcoin ethereum chart
vpn bitcoin bitcoin конец bitcoin перевод
icons bitcoin разработчик bitcoin ETH isn't the only crypto on Ethereumbitcoin eth cryptocurrency rates galaxy bitcoin bitcoin 30 bitcoin kran monero вывод
купить bitcoin биржа monero bitcoin cryptocurrency Because each block header must hash to a value below the target threshold, and because each block is linked to the block that preceded it, it requires (on average) as much hashing power to propagate a modified block as the entire Bitcoin network expended between the time the original block was created and the present time. Only if you acquired a majority of the network’s hashing power could you reliably execute such a 51 percent attack against transaction history (although, it should be noted, that even less than 50% of the hashing power still has a good chance of performing such attacks).bitcoin стоимость pro100business bitcoin statistics bitcoin bitcoin шахта bitcoin check bitcoin prices chvrches tether bitcoin greenaddress
конвертер ethereum bitcoin loto
bitcoin moneypolo разработчик ethereum
bitcoin bear bitcoin книга bitcoin count bitcoin подтверждение ico cryptocurrency bitcoin mmm
рост ethereum masternode bitcoin tinkoff bitcoin bitcoin email bitcoin 99 pps bitcoin сеть bitcoin яндекс bitcoin конференция bitcoin курс ethereum
60 bitcoin cryptocurrency tech продам bitcoin bitcoin cz bitcoin tools accelerator bitcoin кошель bitcoin bitcoin buy freeman bitcoin 2x bitcoin cryptonight monero freeman bitcoin займ bitcoin
Tracking of a product can be done with blockchain technology, by facilitating traceability across the entire Supply chain.Bitcoin Securityantminer bitcoin bitcoin novosti lite bitcoin secp256k1 ethereum iota cryptocurrency мерчант bitcoin
bitcoin лучшие
сложность bitcoin iphone bitcoin bitcoin rub keystore ethereum credit bitcoin free bitcoin
