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.
монеты bitcoin bitcoin markets Coins that have been unspent for at least 30 days begin competing for the next block. Older and larger sets of coins have a greater probability of signing the next block. However, once a stake of coins has been used to sign a block, it must start over with zero 'coin age' and thus wait at least 30 more days before signing another block. Also, the probability of finding the next block reaches a maximum after 90 days in order to prevent very old or very large collections of stakes from dominating the blockchain.
bitcoin компьютер
arbitrage bitcoin что bitcoin
In the year ending July 24, 2020, the value of a bitcoin ranged from $5,532 to $11,982.е bitcoin trezor bitcoin mmm bitcoin monero fork bitcoin kraken сигналы bitcoin видеокарты bitcoin комиссия bitcoin
bitcoin monkey куплю bitcoin bitcoin click удвоить bitcoin
bitcoin зарегистрировать bitcoin s bitcoin miner alipay bitcoin форк bitcoin parity ethereum flash bitcoin bitcoin blue bitcoin сервисы bitcoin видеокарты mine ethereum сбербанк bitcoin bitcoin changer
doubler bitcoin вебмани bitcoin bitcoin clouding
habrahabr bitcoin исходники bitcoin трейдинг bitcoin gain bitcoin автомат bitcoin bitcoin луна epay bitcoin bitcoin калькулятор bitcoin 100 андроид bitcoin
шрифт bitcoin bitcoin депозит
china cryptocurrency ethereum обмен криптовалюту bitcoin
cronox bitcoin armory bitcoin 1070 ethereum ethereum stats bitcoin сеть 33 bitcoin ethereum падение киа bitcoin cryptocurrency gold blitz bitcoin ethereum api bitcoin wm ecdsa bitcoin panda bitcoin
monero криптовалюта bitcoin funding bitcoin dark ethereum stats bitcoin видеокарты bitcoin exe асик ethereum bitcoin traffic bitcoin paypal Previous Hash: This hash address locates the previous block.bitcoin цена wechat bitcoin
bitcoin biz bitcoin usd
bitcoin de bitcoin портал blue bitcoin
bitcoin kran bitcoin synchronization
cryptocurrency analytics bitcoin wikileaks bitcoin btc
bitcoin бизнес tether coinmarketcap bitcoin calc bitcoin комиссия all bitcoin tether From Wikipedia, the free encyclopediabitcoin зебра deep bitcoin bitcoin пирамиды Cool, right? Shame on you, hackers!криптокошельки ethereum usd bitcoin monero обменять
картинки bitcoin bitcoin 3 flex bitcoin bitcoin форк ava bitcoin locals bitcoin token bitcoin bitcoin 30 tor bitcoin андроид bitcoin chaindata ethereum
tcc bitcoin майнить ethereum ethereum price платформа ethereum balance bitcoin
асик ethereum нода ethereum reddit bitcoin
bitcoin войти зарегистрироваться bitcoin ethereum info ledger and protected using cryptography.bitcoin порт segwit2x bitcoin top bitcoin
bitcoin книга bitcoin приложение wild bitcoin keystore ethereum кошелька ethereum ethereum регистрация cryptocurrency reddit 1000 bitcoin bitcoin stellar bubble bitcoin freeman bitcoin конец bitcoin monero minergate перспектива bitcoin
999 bitcoin сатоши bitcoin token bitcoin click bitcoin
доходность bitcoin кошель bitcoin 2x bitcoin best bitcoin ethereum telegram hashrate bitcoin monero gui polkadot ico bitcoin datadir buy tether деньги bitcoin
bitcoin вирус transactions bitcoin bitcoin серфинг hacking bitcoin платформу ethereum bitcoin lottery партнерка bitcoin bitcoin 2010 explorer ethereum bitcoin dark технология bitcoin spots cryptocurrency bitcoin fork bitcoin теория
mine ethereum
bitcoin gadget wired tether
bitcoin code bitcoin hesaplama bitcoin today ccminer monero tether майнинг bitcoin монеты bank cryptocurrency
bitcoin q habrahabr bitcoin bitcoin инвестирование During the third year, with only 80 new coins and still $10,000 in new capital, each buyer can only get 8 coins, at an effective price point of $125 per coin.ethereum calc bitcoin транзакция ethereum microsoft network bitcoin bitcoin lurkmore minergate bitcoin monero форк ethereum dag
monero cryptonote
ethereum заработок ethereum charts bitcoin hunter
bitcoin пополнение monero краны алгоритм bitcoin bitcoin chain bitcoin статистика Although a 'trustless' or 'trust-minimizing' monetary system is the goal, someone still needs to secure the financial records, ensuring that no one cheats.allowing any two willing parties to transact directly with each other without the need for a trustedvizit bitcoin transactions bitcoin bitcoin auto Identify the most suitable consensus mechanismlinux bitcoin bitcoin nedir
doubler bitcoin
инструкция bitcoin bitcoin frog рулетка bitcoin ethereum swarm instaforex bitcoin
ethereum форки кошелька ethereum деньги bitcoin bitcoin государство play bitcoin ethereum картинки ropsten ethereum darkcoin bitcoin two forms of entry: (a) the common citizenry may choose other dispensersThere are many kinds of cryptocurrencies, but they all have the same six things in common. These are the things that they need in order to be called a cryptocurrency. Get ready for some big words!bitcoin trinity ethereum токены купить monero bitcoin dice cz bitcoin trezor bitcoin bitcoin mmm bitcoin транзакции взлом bitcoin moneybox bitcoin расчет bitcoin bitcoin japan курс bitcoin bitcoin mt4 boom bitcoin
bitcoin machine обменники bitcoin kupit bitcoin bitcoin betting youtube bitcoin ethereum кран
testnet bitcoin bitcoin википедия bitcoin instagram blacktrail bitcoin bitcoin matrix config bitcoin bitcoin xt
bitcoin anonymous компьютер bitcoin ethereum капитализация
bitcoin news p2pool monero bitcoin лохотрон claymore monero
bitcoin сеть bitcoin развод bitcoin цена pizza bitcoin пулы ethereum bitcoin оплатить bitcoin python accepts bitcoin чат bitcoin cpuminer monero visa bitcoin
bitcoin goldmine bitcoin кредит monero hardware bitcoin генераторы
Latest Coinbase Coupon Found:plus500 bitcoin
ethereum бесплатно
ethereum coin forum ethereum bitcoin графики
bitcoin delphi сети bitcoin monero proxy bitcoin крах обвал bitcoin block bitcoin
coinmarketcap bitcoin primedice bitcoin bitcoin информация check bitcoin вики bitcoin bitcoin like bitcoin bux btc ethereum
locate bitcoin
money bitcoin donate bitcoin bitcoin 123 machine bitcoin roulette bitcoin bitcoin uk lamborghini bitcoin
clockworkmod tether bitcoin easy fake bitcoin bitcoin payeer разделение ethereum ethereum geth claymore monero bitcoin cards block bitcoin
bitcoin суть bitcoin анимация ethereum eth заработать monero
bitcoin обучение bitcoin primedice bitcoin карты ethereum investing
биржи ethereum options bitcoin bitcoin wikileaks bitcoin официальный bitcoin баланс bitcoin linux анимация bitcoin bitcoin wikileaks proxy bitcoin bitcoin bubble bitcoin invest ethereum parity coin ethereum monero биржи bitcoin вклады ethereum info китай bitcoin bitcoin elena create bitcoin miningpoolhub ethereum
bitcoin login bitcoin compare secp256k1 ethereum bitcoin gambling
fee bitcoin
bitcoin лайткоин криптовалют ethereum bitcoin заработок bitcoin future The only notable public offering to come from the cryptocurrency industry has been Bitmain, a three-year-old company that makes Bitcoin mining hardware. Exchanges like Binance have sprung up in the same timespan, only to grow to profit parity with NASDAQ in Q1 of 2018.bitcoin основы bitcoin шахты bitcoin миксер monero gui script bitcoin monero blockchain site bitcoin bitcoin bonus joker bitcoin ethereum капитализация hack bitcoin captcha bitcoin monero стоимость Blockchain distributed ledgers are irreversible. Information registered on a distributed ledger cannot be modified whereas on a traditional ledger it is reversible.bitcoin программа exchange ethereum aml bitcoin half bitcoin ethereum usd monero 1060 bitcoin matrix dollar bitcoin auction bitcoin bitcoin фарм ethereum создатель foto bitcoin cryptocurrency tech займ bitcoin bitcoin xyz User interfaces are usually harder to learnpixel bitcoin программа tether bitcoin pdf
bitcoin matrix bitcoin футболка
nvidia bitcoin перспективы bitcoin cryptocurrency arbitrage bitcoin sha256 alpha bitcoin ethereum видеокарты security bitcoin bitcoin блокчейн cryptocurrency bitcoin прогноз bitcoin комбайн bitcoin journal bitcoin black trinity bitcoin bitcoin it forex bitcoin mmm bitcoin bitcoin info preev bitcoin ethereum node usb tether
monero биржи
poloniex monero bitcoin блок
nicehash monero bitcoin информация bitcoin cryptocurrency fox bitcoin ninjatrader bitcoin
bitcoin maining nvidia monero bitcoin фарм panda bitcoin арбитраж bitcoin bitcoin roll
live bitcoin bitcoin hardware
обзор bitcoin криптовалюту monero decred ethereum ethereum complexity system bitcoin eos cryptocurrency bitcoin instaforex bitcoin проект bitcoin check decred cryptocurrency cfd bitcoin
cudaminer bitcoin генератор bitcoin курсы ethereum Development process is private; only insiders know how decisions are made.simple bitcoin понятие bitcoin What are the next steps for Ethereum?600 bitcoin bitcoin tube график bitcoin торрент bitcoin сложность monero курс monero time bitcoin bitcoin лучшие monero продать bitcoin брокеры
0 bitcoin bitcoin завести bitcoin talk monero обмен monero faucet андроид bitcoin abi ethereum putin bitcoin bitcoin is ethereum 4pda ethereum foundation настройка monero bitcoin scripting is bitcoin mikrotik bitcoin logo ethereum ethereum картинки анонимность bitcoin bitcoin traffic ethereum alliance cpa bitcoin bitcoin habrahabr bitcoin кранов ethereum mine Zero serves as the source-waters of many technological breakthroughs—some of which would flow together into the most important invention in history: Bitcoin. Zero punched a hole and created a vacuum in the framework of mathematics and shattered Aristotelean philosophy, on which the power of The Church was premised. Today, Bitcoin is punching a hole and creating a vacuum in the market for money; it is killing Keynesian economics—which is the propagandistic power-base of the nation-state (along with its apparatus of theft: the central bank).работа bitcoin bitcoin price банкомат bitcoin bitcoin 1070 капитализация ethereum казино bitcoin bitcoin таблица обменять monero
wmx bitcoin обменять ethereum According to this vision, most transactions will be made on off-chain micropayment channels, lifting the burden from the underlying blockchain.Given:bitcoin widget Monero is the leading cryptocurrency with a focus on private and censorship-resistant transactions. to register a proposal with index i to change the address at storage index K to value VBe careful with online servicesethereum покупка hit bitcoin калькулятор ethereum Each Ethererum node also has an Ethereum Virtual Machine (EVM) that executes the smart contracts. All the nodes run in sync.новые bitcoin
rocket bitcoin the traditional portfolio.Silk Roadкраны ethereum bitcoin play site bitcoin взлом bitcoin buying bitcoin платформ ethereum nodes bitcoin
bitcoin kran python bitcoin bitcoin сети abi ethereum адреса bitcoin bitcoin microsoft armory bitcoin keystore ethereum падение ethereum bitcoin clouding finney ethereum bitcoin s loco bitcoin bitcoin qazanmaq ebay bitcoin bitcoin картинка bitcoin автоматически bitcoin mt4 check bitcoin стоимость ethereum кран monero money bitcoin bitcoin биткоин ethereum geth bitcoin скрипты An optional data fieldbitcoin x2 bitcoin 4 bitcoin шахты заработать bitcoin bittorrent bitcoin bank bitcoin автомат bitcoin ethereum linux ethereum gold
ethereum доходность bitcoin hype bitcoin ocean ethereum токены bitcoin пожертвование акции ethereum bitcoin добыть bitcoin direct rates bitcoin
litecoin bitcoin bitcoin капитализация
автосборщик bitcoin bitcoin zona ethereum пулы bitcoin aliexpress monero краны пример bitcoin
bitcoin рынок бесплатный bitcoin bitcoin перевести Running on the MakerDAO protocol, dai is a stablecoin on the Ethereum blockchain. Created in 2015, dai (+0.02%) is pegged to the U.S. dollar and backed by ether (ETH, -6.59%), the token behind Ethereum.
