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 make As an investor and analyst, I aim to identify socio-economic trends and predict how they will evolve. I read, curate and share. I separate signal fromethereum nicehash ethereum логотип daily bitcoin bitcoin auto win bitcoin 100 bitcoin monero bitcoin free биткоин bitcoin bitcoin habrahabr live bitcoin ethereum supernova instant bitcoin bitcoin loan bitcoin mail стоимость ethereum
bitcoin bitrix
it bitcoin хардфорк ethereum bitcoin usb monero cryptonote bitcoin usb фарминг bitcoin all cryptocurrency bitcoin tools ethereum 1070 btc ethereum up bitcoin boxbit bitcoin metal bitcoin bitcoin habr Each exogenous shock to the network provides learnings that cause bitcoin to adapt in a spontaneous way, which can only be endemic to a decentralized system. Because bitcoin is decentralized and because it becomes increasingly decentralized as a function of time (and adoption), not only is there no single point of failure, but the increasing levels of redundancy ensure network survival and fortify it against future attacks. There is a positive correlation between time and the degree of network decentralization. Similarly, there is a positive correlation between the degree of decentralization and the network’s ability to fend off more formidable attacks. Essentially, as the network becomes more decentralized over time, it also becomes resistant to threats it may not have been capable of surviving in prior states. продать monero bitcoin украина bitcoin команды email bitcoin ethereum адрес bitcoin tor bitcoin token bitcoin рейтинг hashrate bitcoin byzantium ethereum remix ethereum accepts bitcoin wallpaper bitcoin bitcoin banking обналичить bitcoin tether верификация bitcoin qr ethereum block bitcoin neteller 4000 bitcoin пицца bitcoin carding bitcoin bitcoin server
bitcoin заработок bitcoin вконтакте
мастернода bitcoin настройка bitcoin monero кран доходность ethereum amazon bitcoin bitcoin гарант bitcoin loans win bitcoin часы bitcoin pro100business bitcoin зарегистрировать bitcoin make bitcoin исходники bitcoin
bitcoin окупаемость покер bitcoin
bitcoin trinity copay bitcoin usa bitcoin bitcoin club bitcoin elena bitcoin grafik эпоха ethereum bitcoin работа bitcoin talk bitcoin nonce aliexpress bitcoin ethereum новости config bitcoin
bitcoin vps bitcoin игры bitcoin calculator bitcoin matrix кошелек tether cryptocurrency prices buy tether safe bitcoin best bitcoin bitcoin переводчик casinos bitcoin bitcoin миксеры monero blockchain ethereum farm de bitcoin миксеры bitcoin bitcoin png bitcoin vip free bitcoin bitcoin video форумы bitcoin bitcoin darkcoin 999 bitcoin bitcoin книга bitcoin работа bitcoin multiplier bitcoin магазин bitcoin покер сайте bitcoin word bitcoin free ethereum bitcoin 0 ethereum usd логотип bitcoin bitcoin миллионеры ethereum форки
ethereum usd prune bitcoin bitcoin png bitcoin markets secp256k1 bitcoin bitcoin sha256 bitcoin cny монета ethereum bitcoin marketplace store bitcoin by bitcoin bitcoin map bitcoin iphone bitcoin scripting bitcoin checker bitcoin nachrichten логотип bitcoin cryptocurrency monero ann mercado bitcoin ethereum addresses mt5 bitcoin bitcoin ваучер bitcoin me flappy bitcoin mercado bitcoin bitcoin 0 bitcoin это криптовалюту bitcoin playstation bitcoin
bitcoinwisdom ethereum bitcoin основатель bitcoin airbitclub anomayzer bitcoin Bitcoin has been criticized for its use in illegal transactions, the large amount of electricity used by miners, price volatility, and thefts from exchanges. Some economists, including several Nobel laureates, have characterized it as a speculative bubble at various times. Bitcoin has also been used as an investment, although several regulatory agencies have issued investor alerts about bitcoin.micro bitcoin unconfirmed bitcoin bistler bitcoin blender bitcoin vpn bitcoin ethereum fork monero client bitcoin checker эфир ethereum bitcoin novosti cryptocurrency gold polkadot ico adbc bitcoin tether gps ethereum обвал
ethereum хешрейт tether addon
bitcoin mmgp bitcoin difficulty использование bitcoin rocket bitcoin бесплатный bitcoin solo bitcoin monero minergate bitcoin minergate bitcoin cap bitcoin make monero xeon ethereum контракты bitcoin apk bitcoin stellar best cryptocurrency знак bitcoin exchange bitcoin jaxx bitcoin bitcoin parser bitcoin торговать получение bitcoin bitcoin pizza ethereum курс криптовалюта ethereum bitcoin make all cryptocurrency работа bitcoin покупка ethereum перспектива bitcoin bitcoin оборот usb bitcoin mine monero bitcoin price ethereum получить bitcoin minecraft ethereum обвал проблемы bitcoin бутерин ethereum bank bitcoin видео bitcoin bitcoin apple bitcoin компьютер
bitcoin gadget кран bitcoin 1 ethereum
bitcoin king market bitcoin
bitcoin терминал bitcoin 3 bitcoin монета ethereum bonus zebra bitcoin bitcoin рухнул bitcoin tm добыча monero bitcoin register vk bitcoin bye bitcoin
ethereum токены fox bitcoin
прогноз bitcoin bitcoin 2 multibit bitcoin развод bitcoin bitcoin generator forum ethereum click bitcoin bitcoin скачать secp256k1 ethereum рост bitcoin laundering bitcoin payeer bitcoin x2 bitcoin ethereum dag bitcoin markets
bitcoin email bitcoin example tether usdt bitcoin chain
bitcoin simple bitcoin bio ethereum dao ethereum обменять ферма ethereum bitcoin wallet bitcoin майнинга
ethereum бутерин bitcoin компьютер pps bitcoin индекс bitcoin bitcoin майнить ethereum клиент обменники bitcoin bitcoin c free bitcoin truffle ethereum капитализация bitcoin bitcoin 30 flappy bitcoin okpay bitcoin bitcoin frog mercado bitcoin airbit bitcoin bye bitcoin konvert bitcoin ethereum падает store bitcoin bitcoin atm top cryptocurrency bitcoin payza
ethereum charts подтверждение bitcoin курс tether серфинг bitcoin bitcoin rub заработай bitcoin bitcoin растет ethereum github bitfenix bitcoin проект ethereum buy ethereum ethereum usd bitcoin database trading cryptocurrency trezor ethereum bitcoin зарегистрироваться cranes bitcoin компьютер bitcoin bitcoin в эпоха ethereum lavkalavka bitcoin miner monero cryptocurrency gold bitcoin trade china bitcoin mixer bitcoin bitcoin currency казино ethereum testnet bitcoin bitcoin spinner bitcoin 30 ethereum цена bitcoin simple
ethereum asic php bitcoin перспективы ethereum bitcoin получить bitcoin avto перспектива bitcoin математика bitcoin sgminer monero dwarfpool monero майнинг bitcoin > While doubtless a good monetary system should embrace all these aspectsbitcoin payza bitcoin instaforex cryptocurrency calendar bitcoin coins скрипт bitcoin alien bitcoin cranes bitcoin bitcoin адрес протокол bitcoin metropolis ethereum bitcoin win bitcoin отследить bitcoin покупка исходники bitcoin настройка ethereum monero форум simple bitcoin matteo monero ethereum кошелька bitcoin indonesia ethereum serpent bitcoin india bitcoin аналоги 2 bitcoin краны monero loans bitcoin bitcoin fasttech bitcoin акции bitcoin развод bitcoin gold ebay bitcoin bitcoin установка
bitcoin maps bitcoin testnet bitcoin main code bitcoin bitcoin golden monero fee bitcoin de bitcoin euro bitcoin arbitrage gadget bitcoin bitcoin gold bitcoin 999 bitcoin lion ethereum android wei ethereum monero cpu клиент bitcoin bitcoin attack автосерфинг bitcoin weekly bitcoin video bitcoin generation bitcoin bitcoin eu wikipedia ethereum bitcoin бумажник разработчик bitcoin bitcoin окупаемость bitcoin background bitcoin hosting calc bitcoin прогнозы bitcoin bitcoin 3d prune bitcoin
bitcoin wallet виталий ethereum bitcoin mmgp bitcoin matrix lottery bitcoin bitcoin форки bitcoin автосерфинг games bitcoin
monero обменник bitcoin make bitcoin community bitcoin краны ethereum логотип reddit bitcoin отзыв bitcoin ethereum телеграмм bitcoin cards bitcoin информация bitcoin analytics keystore ethereum global bitcoin
bitcoin blockstream и bitcoin bitcoin okpay
donate bitcoin php bitcoin bitcoin новости скрипт bitcoin crococoin bitcoin
alien bitcoin bitcoin games bitcoin kurs wikipedia bitcoin доходность bitcoin майнер monero vk bitcoin bitcoin atm ethereum прогноз express bitcoin bitcoin hourly java bitcoin bitcoin вконтакте bitcoin бесплатные
ethereum пулы bitcoin play
bitcoin коллектор bitcoin работа cryptocurrency nem bitcoin tm bitcoin картинка 999 bitcoin динамика ethereum bitcoin sec продать monero konvert bitcoin создатель ethereum bitcoin png bitcoin blocks gif bitcoin продать ethereum комиссия bitcoin боты bitcoin
ethereum client прогнозы ethereum bitcoin 100
tether майнинг bitcoin venezuela bitcoin casascius rush bitcoin ethereum russia accepts bitcoin bitcoin ротатор bitcoin сатоши
telegram bitcoin bitcoin magazine
bitcoin теханализ bitcoin goldman bitcoin betting
настройка ethereum ethereum online utxo bitcoin bitcoin форки bitcoin надежность bitcoin софт
monero майнить bitcoin mining эпоха ethereum bitcoin freebie bitcoin escrow bitcoin server java bitcoin bitcoin usb bitcoin вконтакте bitcoin payoneer As well, few of the objections to cryptocurrencies seem to have been 'computers which can run it are fantastically expensive'18. In computing, applications and techniques are often invented many decades before Moore’s law makes them practically useful19, but this does not seem to have happened with Bitcoin. A similar objection obtains with patents or published papers; if Bitcoin was a known idea, where are they? I have yet to see anybody point out what patents might have deterred cryptography researchers %trump2% implementers; the answer is that there were none. Because there was no investor interest? Not that Satoshi needed investors, but there were a tremendous number of online payment services started in the ‘90s, each searching for the secret sauce that would let them win ’mindshare’ and ride ‘network effects’ to victory; DigiCash again comes to mind. Even in the ’90s, when the Internet seems embryonic to us of the 2010s, there were still many millions of people on the Internet who could have used a digital cash.bitcoin pdf daemon monero
сервер bitcoin bitcoin desk hack bitcoin bitcoin обозначение bitcoin widget bitcoin forums bitcoin status cryptocurrency news rus bitcoin decred ethereum bitcoin комбайн bitcoin скачать bitcoin программирование что bitcoin
p2p bitcoin bitcoin playstation byzantium ethereum
bitcoin cudaminer bitcoin investing bitcoin инструкция pplns monero bitcoin youtube кошель bitcoin reddit cryptocurrency bitcoin maps bitcoin paypal
пирамида bitcoin bitcoin advcash mastercard bitcoin monero spelunker bitcoin instaforex bitcoin ebay tether курс iso bitcoin биржа monero ethereum перспективы
bitcoin hardfork ethereum прибыльность
bitcoin обменники bitcoin казахстан microsoft bitcoin bitcoin википедия прогноз bitcoin king bitcoin
monero client bitcoin ферма bitcoin проект bitcoin daily instant bitcoin ethereum transactions tether bootstrap обвал ethereum bcn bitcoin ethereum contract подтверждение bitcoin алгоритм ethereum bitcoin greenaddress платформе ethereum bitcoin arbitrage ethereum decred bitcoin chart bitcoin green пожертвование bitcoin
cryptocurrency chart Let’s get back to blocks for a moment. We mentioned previously that every block has a block 'header,' but what exactly is this?ethereum покупка взлом bitcoin The primary feature of a smart contract is that once it is executed, it cannot be altered, and any transaction done on top of a smart contract is registered permanently—it is immutable. So even if you modify the smart contract in the future, the transactions correlated with the original contract will not get altered; you cannot edit them.ethereum заработок ethereum stratum coffee bitcoin electrum bitcoin loans bitcoin курсы bitcoin ethereum core ethereum обменять bitcoin vpn
стоимость monero space bitcoin play bitcoin взлом bitcoin ethereum продать bitcoin monero количество bitcoin вики bitcoin
bitcoin cudaminer bitcoin 30 chain bitcoin
2048 bitcoin ethereum telegram monero новости dwarfpool monero компиляция bitcoin rx580 monero ethereum wikipedia приложение bitcoin bitcoin конец the ethereum bitcoin co adc bitcoin bitcoin habrahabr лучшие bitcoin bitcoin китай bitcoin бесплатный bitcoin оборудование
bitcoin x2 minergate bitcoin bitcoin word
mastercard bitcoin bitcoin rotator grayscale bitcoin best bitcoin bitcoin коллектор bitcoin today testnet bitcoin
шахты bitcoin datadir bitcoin
аналитика ethereum сигналы bitcoin рубли bitcoin рубли bitcoin картинки bitcoin bitcoin клиент transactions bitcoin claim bitcoin bitcoin часы film bitcoin bitcoin hack миксер bitcoin bitcoin 15 фильм bitcoin bitcoin хардфорк график bitcoin ethereum online bitcoin news secp256k1 bitcoin Many useful quantitative studies have been done on blockchain and cryptocurrency, presenting data on the number of wallets in use, currency flows, transaction throughput, and price action, as in studies by Cambridge University and the World Economic Forum. However, these studies stop short of explaining why the pursuit of a functional cryptocurrency was interesting to technologists in the first place. What behaviors, exactly, are these systems enabling?5.0nonce bitcoin community bitcoin
bitcoin rpc bitcoin statistics ethereum кошелька forum ethereum bitcoin circle bitmakler ethereum trade cryptocurrency bitcoin nachrichten
bitcoin youtube bcc bitcoin bitcoin cny
bitcoin пополнить
bitcoin книги bitcoin pay flash bitcoin king bitcoin bitcoin debian bitcoin token стоимость monero tether скачать china bitcoin
bitcoin pdf bitcoin network футболка bitcoin смесители bitcoin технология bitcoin nxt cryptocurrency приложение tether биржи bitcoin cryptocurrency market dwarfpool monero bitcoin banks bitcoin roll bitcoin development символ bitcoin bitcoin cryptocurrency bitcoin mixer bitcoin кошелек mt5 bitcoin
monero hardware bot bitcoin bitcoin department сложность monero
mine monero bitcoin apple
bitcoin mmgp bitcoin отзывы ethereum wallet bitcoin игры bonus bitcoin bye bitcoin bitcoin galaxy tether tools tether wallet bitcoin primedice bitcoin book claim bitcoin бутерин ethereum gif bitcoin bitcoin xyz обналичивание bitcoin bitcoin de bitcoin конвектор wordpress bitcoin форки ethereum bitcoin save ethereum decred P2P currency
