How does Bitcoin work?
This is a question often surrounded by confusion, so here's a quick explanation!
The basics for a new user
As a new user, you can get started with Bitcoin without understanding the technical details. Once you've installed a Bitcoin wallet on your computer or mobile phone, it will generate your first Bitcoin address and you can create more whenever you need one. You can disclose your addresses to your friends so that they can pay you or vice versa. In fact, this is pretty similar to how email works, except that Bitcoin addresses should be used only once.
Balances - block chain
The block chain is a shared public ledger on which the entire Bitcoin network relies. All confirmed transactions are included in the block chain. It allows Bitcoin wallets to calculate their spendable balance so that new transactions can be verified thereby ensuring they're actually owned by the spender. The integrity and the chronological order of the block chain are enforced with cryptography.
Transactions - private keys
A transaction is a transfer of value between Bitcoin wallets that gets included in the block chain. Bitcoin wallets keep a secret piece of data called a private key or seed, which is used to sign transactions, providing a mathematical proof that they have come from the owner of the wallet. The signature also prevents the transaction from being altered by anybody once it has been issued. All transactions are broadcast to the network and usually begin to be confirmed within 10-20 minutes, through a process called mining.
Processing - mining
Mining is a distributed consensus system that is used to confirm pending transactions by including them in the block chain. It enforces a chronological order in the block chain, protects the neutrality of the network, and allows different computers to agree on the state of the system. To be confirmed, transactions must be packed in a block that fits very strict cryptographic rules that will be verified by the network. These rules prevent previous blocks from being modified because doing so would invalidate all the subsequent blocks. Mining also creates the equivalent of a competitive lottery that prevents any individual from easily adding new blocks consecutively to the block chain. In this way, no group or individuals can control what is included in the block chain or replace parts of the block chain to roll back their own spends.
Compared with Bitcoin’s primitive scripting language, the code that can be deployed in Ethereum and run as smart contracts is more advanced and familiar to developers. Smart contract code is run by something called the Ethereum Virtual Machine, which runs on the computers of all participants on the network. If you are familiar with Microsoft Excel macros (pieces of code run by Excel), then similarly smart contracts are pieces of code run by Ethereum’s Virtual Machine.korbit bitcoin fast bitcoin bitcoin attack bitcoin cny халява bitcoin bitcoin conveyor bitcoin symbol яндекс bitcoin accepts bitcoin ethereum addresses партнерка bitcoin mmm bitcoin bitcoin казахстан ethereum dao bitcoin работать депозит bitcoin india bitcoin bitcoin xyz putin bitcoin cap bitcoin взлом bitcoin бонус bitcoin bitcoin дешевеет ethereum бесплатно bitcoin facebook bitcoin счет андроид bitcoin bitcoin etf ethereum статистика bitcoin roulette ethereum calc avatrade bitcoin secp256k1 bitcoin bitcoin bazar bitcoin бесплатные ethereum ios habrahabr bitcoin bitcoin symbol ethereum studio solidity ethereum халява bitcoin bitcoin перевод planet bitcoin bitcoin wm платформе ethereum
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