What does Bitcoin look like (What does Bitcoin look like now)?

What does Bitcoin look like? Bitcoin has experienced a 200% increase in price in a short period of time, but due to different levels of transaction frequency, there is no obvious “circuit breaker” phenomenon in its network. Currently, the most popular and well-known cryptocurrency on the market is Bitcoin (BTC). According to Coinmarketcap data, as of the closing on June 30, 2020 (Thursday), the current price of Bitcoin is around 38,000 USD. From the analysis of historical data, since 2009, more than 300 countries or regions have started issuing Bitcoin as fiat currency forms for customer use.

What does Bitcoin look like now

Editor’s Note: This article is from Caiyun Blockchain (ID:cybtc_com), authorized by Odaily Star Planet Daily to repost.

“What does Bitcoin look like now?” is what people search for online. It is a peer-to-peer electronic cash system, a tokenized unit of cryptocurrency and digital asset. This makes it more resistant to censorship, verifiable, and secure compared to traditional fiat currencies. And due to the absence of centralized institutions or central banks controlling the transaction process and the technological characteristics that guarantee security, it also makes its price more stable. With more and more developers entering this field, we find that it has the following characteristics:

(1) Literally, it is a two-tier structure (often called two-way lines) – that is, a set of individual nodes running in a block defined by multiple shards. When each node puts the block on the same track, a new Bitcoin block is generated, increasing the overall network capacity. This forms the Bitcoin native token BTC, which is also called BCH, BSV, etc.

(2) There is a strong difference between two different addresses (as shown in Figure 2). For example, the first account has 1 million BTC, the second account holds 500,000 BTC, the third account has 2 million BTC… There is an obvious price fluctuation relationship between these different addresses, but it cannot accurately reflect the transfer trend between them. This explains why technologies like Lightning Network can provide better privacy protection.

(3) Because the on-chain data is not public, tracking can only be done through anonymous message transmission without the involvement of third parties. For example, someone will use an on-chain message to transfer money to him, and then his wallet will be stolen and discarded by hackers. This is the so-called trustless issue.

(4) Because the blockchain itself is an open-source protocol, any user can use this software for free. In addition, every transaction is recorded to ensure the security of funds. If an exchange closes, Bitcoin will disappear forever. Finally, Bitcoin will not undergo hard forks or other unexpected situations, only new changes will occur in the future. However, Bitcoin is not the only cryptographic solution that achieves this. (Note: An upgrade in May added some features to help improve security.)

However, from the current perspective, most blockchains are based on cryptographic principles, that is, the consensus algorithm of Bitcoin is very similar to Bitcoin, which is why some people believe it can become the next generation payment settlement tool. In fact, although the original design of Bitcoin was to avoid the anonymity problem of Bitcoin, many other types have appeared now.

1. Unmanaged encrypted assets: In some cases, only a specific amount of data can be stored on the blockchain.

2. Public/permissioned Bitcoin: On the blockchain, all private items are open and can be accessed without intermediaries.

3. Distributed ledger: As a new type of application on the Internet…