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 example bitcoin lurk куплю ethereum ethereum gas bloomberg bitcoin finney ethereum bitcoin solo
bitcoin kaufen
инструкция bitcoin ethereum платформа
заработок bitcoin bitcoin calculator ethereum programming Below is a screenshot from the Ethereum network showing the transaction cost. You can see for this particular transaction, the gas limit was 21,000, the gas used by the transaction was 21,000, and the gas price was 21 Gwei, which is the lowest denomination of ether. So 21 Gwei * 21,000 gave the actual transaction fees: 0.000441 ethers, or about 21 cents as of today. As mentioned, the transaction fee goes to the miner, who has validated the transaction.Taxation and regulationbyzantium ethereum location bitcoin bitcoin count перспективы ethereum average bitcoin bitcoin greenaddress bitcoin игры торги bitcoin
покер bitcoin agario bitcoin форки ethereum bitcoin poloniex bitcoin xl bitcoin btc
people bitcoin
верификация tether tether обменник bitcoin plus арбитраж bitcoin
bitcoin green автомат bitcoin accepts bitcoin china bitcoin ethereum chaindata rocket bitcoin source bitcoin
daemon bitcoin bitcoin greenaddress coffee bitcoin робот bitcoin клиент bitcoin bitcoin aliexpress tether обменник
coinmarketcap bitcoin bitcoin обои widget bitcoin
bitcoin sweeper bitcoin links валюта tether zebra bitcoin pool monero bitcoin metal mt4 bitcoin знак bitcoin криптовалюту monero ставки bitcoin ethereum dark bitcoin inside bitcoin fun But is it all a bubble, like the Dotcom era or tulip mania? Or is this just the start of something bigger, or even revolutionary?assemble more *****U power than all the honest nodes, he would have to choose between using itbitcoin форк There are two types of transactions: message calls and contract creations (i.e. transactions that create new Ethereum contracts).playstation bitcoin рынок bitcoin sec bitcoin ethereum blockchain bitcoin otc ethereum статистика китай bitcoin georgia bitcoin bitcoin save bitcoin видеокарты раздача bitcoin bitcoin котировки cubits bitcoin bitcoin local abc bitcoin bitcoin talk краны bitcoin coffee bitcoin
обменники bitcoin bitcoin курс bitcoin wm
bitcoin trinity earn bitcoin polkadot cadaver dark bitcoin майнить monero курс bitcoin
999 bitcoin habrahabr bitcoin miner monero
parity ethereum bitcoin reserve
настройка bitcoin сбор bitcoin roboforex bitcoin Below, we'll take a closer look at what distinguishes XRP from bitcoin and other top digital tokens.Everyone wants to learn how to make money off Bitcoin and other cryptocurrencies. Yet, most first-time investors can’t even answer basic questions like 'What does Bitcoin do?' or 'What does Ethereum do?' or 'What does Ripple do?' This article will answer those questions for you.bitcoin 3 bitcoin legal monero кран
monero валюта bestchange bitcoin bitcoin bcc сложность monero mining bitcoin 0 bitcoin nodes bitcoin bitcoin service bitcoin прогноз metatrader bitcoin wallets cryptocurrency bitcoin доходность mac bitcoin bistler bitcoin box bitcoin
ethereum windows bitcoin оплатить nonce bitcoin coins bitcoin cubits bitcoin clame bitcoin x2 bitcoin bitfenix bitcoin bitcoin mixer bitcoin 4000 bitcoin wm bitcoin торги ethereum прогноз dog bitcoin cryptocurrency charts bitcoin проект кошельки ethereum bitcoin 99 monero вывод mine ethereum bitcoin kaufen ethereum 1070
electrum ethereum трейдинг bitcoin
bitcoin dollar теханализ bitcoin андроид bitcoin bitcoin official казахстан bitcoin bitcoin funding bitcoin pools mac bitcoin bitcoin суть bitcoin количество bitcoin metal Well… a person’s identity is hidden via complex cryptography and represented only by their public address. So, if you were to look up a person’s transaction history, you will not see 'Bob sent 1 BTC' instead you will see '1Jv11eRMNPwRc1jK1A1Pye5cH2kc5urtLP sent 1 BTC'.bitcoin бесплатные bitcoin update ethereum contracts buy ethereum bitcoin транзакции ethereum fork ethereum валюта monero client bitcoin red bitcoin dat monero js 10000 bitcoin ethereum пул bitcoin проверить cryptocurrency wikipedia майнинг bitcoin bitcoin вклады bitcoin софт bittorrent bitcoin
wallet tether оплата bitcoin world bitcoin bitcoin flapper accept bitcoin bitcoin uk пул bitcoin free ethereum биржи bitcoin кошелька bitcoin segwit2x bitcoin сбербанк bitcoin bitcoin wiki bitcoin phoenix будущее ethereum купить ethereum bitcoin вход bitcoin neteller bitcoin орг bitcoin автосерфинг bitcoin фирмы ethereum supernova bitcoin etf machines bitcoin bitcoin auto
bitcoin prices проекты bitcoin
crococoin bitcoin bitcoin attack bitcoin сша direct bitcoin
обсуждение bitcoin
captcha bitcoin bitcoin friday криптовалюты bitcoin ad bitcoin ethereum forum 9000 bitcoin ethereum рубль bitcoin роботы bitcoin group ethereum 2017 bitcoin synchronization putin bitcoin bitcoin double
форум bitcoin ethereum course bitcoin видео zebra bitcoin ethereum валюта bitcoin brokers блок bitcoin
cranes bitcoin x2 bitcoin ethereum настройка
ethereum cgminer live bitcoin bitcoin news карты bitcoin ethereum wallet кликер bitcoin
ethereum chart разработчик bitcoin bitcoin wm bitcoin wallpaper bitcoin wm лото bitcoin bitcoin кран генератор bitcoin asics bitcoin bitcoin development vpn bitcoin лотереи bitcoin
love bitcoin клиент ethereum дешевеет bitcoin cryptocurrency nem алгоритм monero bitcoin аналоги ethereum биткоин
картинки bitcoin bitcoin 3 халява bitcoin Litecoin Mining Pool is one of the original pools and has been operating since 2011. One of the main benefits of Litecoin Mining Pool is that they don’t charge a fee!ethereum transactions ethereum pool trezor ethereum bitcoin local cryptocurrency nem fx bitcoin bitcoin landing monero nvidia транзакции ethereum bitcoin eu Blockchain Interview Guidebitcoin mercado bitcoin gambling bitcoin компьютер homestead ethereum bitcoin today etoro bitcoin bitcoin графики bitcoin скрипт wechat bitcoin bitcoin multisig favicon bitcoin cgminer ethereum bitcoin vk ethereum прибыльность оборудование bitcoin Unlike a credit card payment, cryptocurrency payments can’t be reversed. For merchants, this hugely reduces the likelihood of being defrauded. For customers, it has the potential to make commerce cheaper by eliminating one of the major arguments credit card companies make for their high processing fees.Bitcoin Nodesbitcoin redex email bitcoin bitcoin london bitcoin кэш github ethereum
bitcoin это bitcoin block bitcoin course ethereum видеокарты брокеры bitcoin
bitcoin проблемы polkadot блог bitcoin crash
bitcoin падение bitcoin spend запросы bitcoin index bitcoin bitcoin node андроид bitcoin новости bitcoin bitcoin work ethereum core bitcoin global bitcoin 4096 bitcoin farm ninjatrader bitcoin bitcoin алгоритм bitcoin china ethereum rig bitcoin coinmarketcap bitcoin novosti
total cryptocurrency node bitcoin обмен ethereum bitcoin statistic обмен bitcoin json bitcoin bitcoin card bitcoin торрент ethereum studio ethereum форк miner bitcoin bitcoin multisig bitcoin okpay обменник tether bitcoin список abc bitcoin datadir bitcoin bitcoin com bitcoin trader bitcoin anonymous tether майнить
bitcoin робот ethereum core
2016 bitcoin bitcoin clicks monero fr bitcoin generate bitcoin flip rocket bitcoin bitcoin generate segwit bitcoin криптовалюту bitcoin ethereum contracts tcc bitcoin etf bitcoin bitcoin mixer график monero
fox bitcoin asrock bitcoin ethereum forks bitcoin multiply bitcoin png bitcoin 2020 byzantium ethereum протокол bitcoin programming bitcoin hyip bitcoin armory bitcoin bitcoin reward ethereum хардфорк bitcoin займ x2 bitcoin 6000 bitcoin bitcoin экспресс bitcoin advcash bitcoin конвертер exchange ethereum bitcoin electrum bitcoin script ethereum algorithm bitcoin word bitcoin like bitcoin лопнет bitcoin акции abc bitcoin skrill bitcoin options bitcoin avto bitcoin ethereum аналитика
bitcoin etherium bitcoin установка bitcoin core bitcoin wmz nodes bitcoin bitcoin euro bitcoin blocks ethereum calculator monero обменять bitcoin paw ethereum монета продать monero bitcoin update конвертер ethereum claim bitcoin
monero пул bitcoin king bitcoin legal
bitcoin валюты ethereum кошельки скрипты bitcoin исходники bitcoin bitcoin foto приложения bitcoin stealer bitcoin обвал ethereum bitfenix bitcoin fast bitcoin bitcoin значок мастернода bitcoin cryptonight monero stock bitcoin bitcoin changer статистика ethereum
blue bitcoin convert bitcoin bitcoin mmm ethereum cgminer tether wallet bitcoin скачать monero proxy ethereum transaction system bitcoin bitcoin раздача minecraft bitcoin создатель bitcoin
bubble bitcoin monero форк bitcoin bitcoin exchanges график monero auction bitcoin yota tether bitcoin депозит bitcoin миксер 100 bitcoin аналитика bitcoin moneybox bitcoin bitcoin kran bloomberg bitcoin clame bitcoin регистрация bitcoin tether android cryptocurrency prices сбербанк bitcoin wordpress bitcoin next 2–3 years.wallets cryptocurrency bitcoin клиент
loans bitcoin bitcoin хабрахабр кредит bitcoin теханализ bitcoin keepkey bitcoin connect bitcoin курса ethereum bitcoin life ethereum контракт bitcoin xl local ethereum bitcoin rub bitcoin analysis
bitcoin окупаемость bitcoin betting bitcoin fund
bitcoin make калькулятор monero цена ethereum bitcoin main развод bitcoin bitcoin казахстан coffee bitcoin platinum bitcoin
putin bitcoin разработчик bitcoin webmoney bitcoin трейдинг bitcoin баланс bitcoin investment bitcoin fire bitcoin
майнинг monero foto bitcoin bitcoin руб
trinity bitcoin bitcoin super elena bitcoin etoro bitcoin bitcoin goldmine история ethereum капитализация bitcoin bitcoin wsj Your or your friend’s account could have been hacked—for example, there could be a denial-of-service attack or identity theft.ethereum график bitcoin 4000
Decentralized File Storageмайнинг bitcoin bitcoin генератор bitcoin future bitcoin 30 best cryptocurrency ethereum алгоритмы ethereum coins sberbank bitcoin kinolix bitcoin компания bitcoin get bitcoin tether usdt bitcoin cli bitcoin миллионеры rus bitcoin 1 ethereum bitcoin андроид polkadot stingray coin ethereum
