What is Bitcoin? How does it work?

What is Bitcoin?

The concept of Bitcoin (BTC) was originally proposed by Nakamoto in 2009, and the open source software and P2P network were designed according to the ideas of Nakamoto. Bitcoin A digital currency in the form of P2P, peer-to-peer transmission means a decentralized payment system.

Asked on July 10, 2018 in BTC.
Add Comment
1 Answer(s)

What is Bitcoin?

The concept of Bitcoin (BTC) was originally proposed by Nakamoto in 2009, and the open source software and P2P network were designed according to the ideas of Nakamoto. Bitcoin A digital currency in the form of P2P, peer-to-peer transmission means a decentralized payment system.

Unlike most currencies, Bitcoin does not rely on a specific currency institution for distribution. It is a specific algorithm generated by a large number of calculations. Bitcoin economy applies to a distributed database composed of many nodes in the entire P2P network to confirm and record all transaction behaviors. And use cryptographic design to ensure the security of all aspects of currency utilization.

Cryptographic based design allows Bitcoin to be transferred or paid only by the actual owner. This also ensures the anonymity of currency ownership and circulation transactions. The biggest difference between Bitcoin and other cryptocurrencies is that their total quantity is very limited and extremely scarce. Its total amount is permanently limited to 21 million. In the live Market of Bitcoin, its share is biggest.

How does Bitcoin work?

First, you download a Bitcoin client and install it on your computer to generate an electronic account – the wallet. Then you download a “mining” software, enter your account name into the software and use your computer to run the software.

If your computer is running at 1000 times a minute, and there are 10 computers in the world running this software for a total of 20,000 calculations, then your contribution to the operation is 1/20. If the amount of bitcoin is released in this minute is 20, then your account will receive a bitcoin. Therefore, the issuance of bitcoin is achieved by people using a computer to run a software (calculating a set of programs) – “mining”, whoever operates a lot, and who is assigned more bitcoin.

Answered on July 10, 2018.
Add Comment
  • Your Answer

    By posting your answer, you agree to the privacy policy and terms of service.