Do I have what Bitcoin is

What is Bitcoin? Do I have it? Bitcoin is a decentralized Cryptocurrency that allows traders to make payments through the network. It cannot be realized in the traditional banking system, but now many large technology companies have begun to use encryption technology, such as IBM, Nvidia, etc So what are the advantages of Bitcoin 1. There is no exchange or wallet. If someone wants to purchase a digital asset and needs to use these digital assets, they need to first hand over the private key to a third party for storage 2. Blockchain technology (distributed ledger). Bitcoin, Ethereum and other Cryptocurrency have their own consensus mechanisms (such as POW) and different Proof of work consensus algorithms. But currently Bitcoin also has some issues. For example, how to ensure the security of transactions and whether sufficient confirmation time can be obtained; What is the transaction fee; The issuance and circulation of Bitcoin What is Bitcoin

Editor’s note: This article is from Orange Book (ID: chengpishu) and is reprinted by the Daily Planet with authorization What is Bitcoin? Today, let’s take a look at what Bitcoin is

To put it simply, Bitcoin is a decentralized Cryptocurrency, and the ledger recorded on the blockchain is controlled by one or several nodes; And unlike any other digital currency, it can expand indefinitely without the involvement of central institutions, so its value truly exists

In fact, it may not be strange for ordinary people to understand the name, because people often use terms such as Cryptography and distributed system technology to describe and analyze, but this is not familiar to everyone. In fact, from the beginning, it can be understood as a point-to-point Electronic cash protocol, or called payment network. But many people may mistakenly believe that it is a payment method for completing transactions through some means on the internet. Do you want to know this information? If not, then you cannot be completely certain that this is a virtual asset issued by a certain organization, but rather rely on some third-party platforms as intermediaries to handle your business activities, without relying on intermediaries to provide guarantees and other operations Why is this situation happening? The answer is obvious, as they are all anonymous, it is impossible to confirm their source, making it difficult to ensure accuracy. However, as time goes by and more and more people realize the existence of this concept, they will gradually accept it

Let’s explain the working principle of Bitcoin in the form of pictures and texts:

Bitcoin is a new Social experiment project created collectively by computer programmers, mathematicians, engineers, economists, software developers and enthusiasts The goal of this project is to address to some extent the credit issues that exist in the current financial system, while allowing banks and other institutions to use these credits to establish loan accounts and obtain deposits Although many companies in the current market have changed their business models to “tokenization”, they did not achieve such goals before the emergence of Bitcoin What is the operating mechanism of Bitcoin? The design concept of Bitcoin is as follows:

Firstly, Bitcoin is a peer-to-peer network system. Each Bitcoin block contains a unique information source address: each block has a specific hash value as the initial reward. In this way, all miners will receive a corresponding number of wallet addresses Secondly, according to historical data, during each halving event, a portion of users choose to use newly excavated Bitcoin to purchase more Bitcoin to offset previous expenses. After the first halving, the third production after the second halving will increase by about half, and the remaining part will be used for the next difficulty adjustment. That is to say, once the second batch of production decreases by more than 50%, the remaining part will be destroyed.