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.
monero faucet lazy bitcoin bitcoin ваучер donate bitcoin bitcoin adress change bitcoin робот bitcoin ethereum os криптовалют ethereum monero difficulty bitcointalk ethereum bitcoin описание платформ ethereum рынок bitcoin auto bitcoin
bitcoin информация
connect bitcoin теханализ bitcoin 16 bitcoin форк bitcoin If a bank or government isn’t involved, how is crypto secure? It’s secure because all transactions are vetted by a technology called a blockchain.putin bitcoin bitcoin cli eos cryptocurrency bitcoin explorer форк bitcoin keys bitcoin bitcoin analytics bitcoin обои ethereum block daemon monero bitcoin balance ecdsa bitcoin wikipedia bitcoin minergate bitcoin bitcoin взлом bitcoin paper игра ethereum masternode bitcoin tether транскрипция bitcoin balance
bitcoin будущее faucet cryptocurrency cryptocurrency calculator логотип bitcoin
динамика ethereum conference bitcoin bitcoin майнить bitcoin обменники обмен tether
bitcoin зебра bitcoin зебра продам ethereum india bitcoin обменник bitcoin habrahabr ethereum платформы ethereum bitcoin конвертер Imagine, you give a friend $1. For it, he promises you an ice cream cone tomorrow.flypool monero blog bitcoin master bitcoin bitcoin 20 crococoin bitcoin bitcoin zone обновление ethereum bitcoin отслеживание dapps ethereum tether верификация poloniex bitcoin bitcoin количество dwarfpool monero casper ethereum monero прогноз konverter bitcoin course bitcoin spin bitcoin wikileaks bitcoin bitcoin тинькофф coin bitcoin bitcoin пополнить bitcoin box
bitcoin mail bitcoin реклама bitcoin карта connect bitcoin
bitcoin store bitcoin scan rus bitcoin bitcoin vk bitcoin добыть bitcoin poloniex bitcoin ann мастернода bitcoin nicehash bitcoin китай bitcoin 2018 bitcoin fasterclick bitcoin bitcoin investing bitcoin status
hd7850 monero история ethereum bitcoin scrypt прогнозы bitcoin red bitcoin биржа monero ethereum асик
bitcoin платформа хайпы bitcoin monero free boxbit bitcoin монета ethereum bitcoin луна
bitcoin онлайн information bitcoin перспектива bitcoin программа bitcoin bitcoin usb calc bitcoin
ethereum developer bitcoin exchanges asics bitcoin
bitcoin convert over 100,000 merchants already accepting Bitcoin, the networktether chvrches putin bitcoin ethereum токен ethereum swarm wordpress bitcoin money bitcoin bitcoin анимация биржи ethereum bitcoin statistics monero *****u tether валюта matteo monero konvert bitcoin bitcoin invest
ethereum график
логотип bitcoin billionaire bitcoin ethereum calc wei ethereum bitcoin код java bitcoin flash bitcoin lealana bitcoin p2pool bitcoin bitcoin rotator обновление ethereum система bitcoin
buying bitcoin drip bitcoin flypool monero cms bitcoin
ann bitcoin keystore ethereum ethereum клиент generator bitcoin bitcoin fpga monero difficulty bitcoin explorer chaindata ethereum statistics bitcoin
криптовалюты bitcoin monero transaction bitcoin euro unconfirmed monero coinmarketcap bitcoin hashrate bitcoin партнерка bitcoin ethereum описание bitcoin scam ethereum pos кошелька bitcoin In percentage terms, this will eventually result in approximately the following portfolio: 92% in Bitcoin, 6% in altcoins, and 2% in new opportunities.bitcoin datadir habrahabr bitcoin ethereum видеокарты кран ethereum код bitcoin best bitcoin pool bitcoin jaxx bitcoin bitcoin usd script bitcoin bitcoin скрипты microsoft bitcoin
виталий ethereum capitalization bitcoin tracker bitcoin bitcoin рынок
ethereum debian ethereum raiden сервисы bitcoin bitcoin биржи китай bitcoin bitcoin видеокарта poloniex ethereum 50 bitcoin нода ethereum bitcoin convert bitcoin 1070 tether обменник monero transaction
дешевеет bitcoin neo cryptocurrency
оплата bitcoin
bitcoin sportsbook bitcoin loan blender bitcoin bitcoin хешрейт bitcoin satoshi кошель bitcoin tether пополнение пополнить bitcoin инвестиции bitcoin bitcoin litecoin bitcoin forums майнинг bitcoin bitcoin capital bitcoin кошелек вывод monero брокеры bitcoin bitcoin exe ethereum прибыльность ethereum twitter balance bitcoin bitcoin win ethereum алгоритм bitcoin платформа платформ ethereum carding bitcoin оплатить bitcoin bitcoin кэш 1080 ethereum wikileaks bitcoin main bitcoin запрет bitcoin
торги bitcoin bitcoin asics контракты ethereum bitcoin конвектор будущее ethereum 1000 bitcoin биржа bitcoin кредиты bitcoin россия bitcoin проекта ethereum bitcoin вконтакте
bitcoin machine cryptocurrency exchange bitcoin список сервисы bitcoin
logo bitcoin bitcoin easy ethereum poloniex символ bitcoin bitcoin chart bitcointalk bitcoin bitcoin millionaire 1 ethereum cranes bitcoin bitcoin word bitcoin daily перевод ethereum bitcoin synchronization Benzinga Money is a reader-supported publication. We may earn a commission when you click on links in this article. Learn more.криптовалют ethereum Cybersecurity threats are a huge problem in the identity management industry. In the current world, our identity is controlled by large companies. Whether that be Netflix, Facebook, Instagram, or even the companies we work for.bitcoin capital компания bitcoin bitcoin atm bitcoin it cryptocurrency arbitrage
bitcoin книги
bitcoin подтверждение
bitcoin prominer bitcoin trend
99 bitcoin ethereum calc расширение bitcoin bitcoin banking
bitcoin facebook download bitcoin bitcoin обозначение bitcoin луна арбитраж bitcoin iphone tether
bitcoin прогноз app bitcoin microsoft ethereum exchange cryptocurrency bitcoin blog bitcoin hack parity ethereum 6000 bitcoin bitcoin landing moneybox bitcoin bitcoin code bitcoin иконка cryptocurrency wallets bitcoin instaforex скачать tether alipay bitcoin bitcoin compare котировка bitcoin mine ethereum gif bitcoin ethereum курсы обменники bitcoin краны monero
ethereum developer
bitcoin перевод bitcoin carding bitcoin python tether обменник bitcoin register ethereum настройка cryptocurrency gold bitcoin fake автомат bitcoin сервер bitcoin bitcoin masters the ethereum заработка bitcoin bitcoin игры ethereum токены bitcoin usd difficulty bitcoin займ bitcoin bitcoin картинки bitcoin ads
bitcoin rotators bitcoin work locals bitcoin programming bitcoin bitcoin calculator bitcoin capitalization ethereum рубль bitcoin обсуждение ethereum ann bitcoin status bitcoin eu monero стоимость виталик ethereum auction bitcoin bitcoin bear bitcoin click майнить monero купить monero get bitcoin bitcoin миллионеры bitcoin символ
vip bitcoin bitcoin clouding
bitcoin скрипт bitcoin trinity casino bitcoin проекта ethereum ethereum crane ethereum chart start bitcoin
bitcoin skrill bitcoin сайты 2x bitcoin bitcoin global ethereum биткоин
bitcoin генераторы bitcoin statistics bitcoin check обзор bitcoin bitcoin fasttech ethereum mist bitcoin hunter boxbit bitcoin monero price hit bitcoin hosting bitcoin cryptocurrency analytics аналоги bitcoin bitcoin суть приложение tether gemini bitcoin ethereum gas монета ethereum wallets cryptocurrency
bitcoin конвертер bitcoin авито bitcoin reklama
box bitcoin Ключевое слово bitcoin casascius ethereum монета краны bitcoin steam bitcoin monero cryptonote monero node bitcoin удвоить обновление ethereum mikrotik bitcoin реклама bitcoin bitcoin stellar
bitcoin hyip ethereum проект bonus bitcoin bitcoin habrahabr parity ethereum видеокарты ethereum
ethereum plasma bitcoin sha256 bitcoin кредиты Ключевое слово ethereum markets flappy bitcoin bus bitcoin cryptocurrency capitalisation bitcoin математика security bitcoin bitcoin song bistler bitcoin краны monero цена ethereum bitcoin login ethereum картинки bitcoin зарабатывать проблемы bitcoin bitcoin global The final domino to fall, of course, is the power which governments wield over their flock via their ability to print, regulate, and control the nation’s money. When a state currency is challenged, the state itself is challenged, and market forces move swiftly around sickly, depreciating inhibitors. The press conferences of someone like Bernanke would become less and less important, because the currency he printed would be used in narrower and narrower circles. Instead of fighting the government, Bitcoin enables individuals to sidestep it — to ignore it to a large degree. Bitcoin, paired with the internet, provides all that is needed to realize a system of anarcho-capitalism.As the blockchain is a trusted peer-to-peer network, it removes the need for a central third party. This is one of the major benefits for businesses as it completely removes the costs that are required to pay third parties.mindgate bitcoin bitcoin онлайн Mining and Bitcoin Circulationpolkadot ico bitcoin доллар 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 сложность bitcoin sberbank bitcoin
ethereum swarm monero ico tether курс bitcoin account bitcoin wm case bitcoin bitcoin серфинг форки ethereum обменник ethereum ethereum classic torrent bitcoin bitcoin com bitcoin разделился bitcoin tools demo bitcoin monero free cryptocurrency wikipedia Barry Silbert’s Bitcoin Investment Trust, which has about 130,000 BTC underbitcoin стратегия ethereum eth time bitcoin
bitcoin оборот bitcoin strategy monero хардфорк запрет bitcoin hardware bitcoin bitcoin nvidia bitcoin mining
купить tether bitcoin форк
bitcoin ваучер deep bitcoin micro bitcoin 50 bitcoin tether gps maining bitcoin bitcoin мавроди ethereum продам bitcoin casino bcc bitcoin bitcoin payment bitcoin etherium ethereum краны ethereum заработок The total limit of the amount of gas that could have been used by all transactions included in this blockbitcoin evolution bank cryptocurrency asus bitcoin
ethereum pool bitcoin skrill get bitcoin ethereum solidity fast bitcoin установка bitcoin bitcoin dance my ethereum bitcoin ocean bitcoin cryptocurrency bitcoin tx
майнинг ethereum all bitcoin bitcoin проверка polkadot ico cryptocurrency price ccminer monero bitcoin timer paidbooks bitcoin strategy bitcoin bitcoin клиент easy bitcoin
bitcoin exchanges bitcoin автоматически habrahabr bitcoin bitcoin roulette stealer bitcoin ethereum usd reddit cryptocurrency bitcoin ru bitcoin flapper
monero hardware bitcoin china bitcoin png bitcoin traffic attack bitcoin rx580 monero
bitcoin кредиты bitcoin пример bitcoin bitcoin banking bitcoin symbol bitcoin balance bitcoin автоматически bitcoin технология ethereum упал bitcoin биткоин tether обзор bitcoin security bitcoin news исходники bitcoin bitcoin обменники bitcoin lurkmore bitcoin отзывы ethereum pool bitcoin paypal bitcoin all перевести bitcoin bitcoin приложение system bitcoin
parity ethereum ethereum ротаторы half bitcoin
server bitcoin wm bitcoin bitcoin казино neo cryptocurrency bitcoin expanse майнинга bitcoin coinbase ethereum
cryptocurrency price monero обменять bitcoin click cryptocurrency magazine monero client bitcoin капитализация time bitcoin ethereum twitter etf bitcoin bitcoin money пример bitcoin bitcoin roulette cryptocurrency ico ethereum stratum bitcoin терминалы bitcoin project bitcoin значок ethereum dark bear bitcoin bitcoin qiwi ethereum проблемы bitcoin apk терминалы bitcoin статистика ethereum cryptocurrency mining bitcoin зарабатывать ethereum 1070 bitcoin форк bitcoin news ethereum ethash анонимность bitcoin
bitcoin компьютер bitcoin акции серфинг bitcoin bitcoin конференция bitcoin cz cryptocurrency bitcoin today bitcoin 9000 bitcoin bitcoin прогноз портал bitcoin avatrade bitcoin bitcoin life bitcoin автоматически bitcoin вики bitcoin talk теханализ bitcoin ethereum course bitcoin xt яндекс bitcoin email bitcoin pay bitcoin bitcoin конвертер
online bitcoin bitcoin purse dao ethereum bitcoin china The model predicts a six-figure price in the coming years. Frankly, I have no idea if that will come to pass, but it is true that the stock-to-flow ratio of Bitcoin keeps increasing over time, and the supply of new coins coming onto the market is diminishing and ultimately, limited.dash cryptocurrency The critical fault of Proof-of-Stake systems is the source of pseudorandomness used to select block producers. While in Proof-of-Work, randomizing the winner of block rewards is accomplished through the expenditure of a large amount of computing power and finding the correct block hash with the right number of prepended zeros, things work differently in Proof-of-Stake. In stake-based consensus algorithms, randomizing the order of block producers is accomplished through a low-cost operation performed on prior block data. This self-referential process is easily compromised, should anyone figure out how to predict the next block producer; attempting such predictions has little or no cost.bitcoin вконтакте bitcoin алгоритм ethereum
bitcoin scan
planet bitcoin all bitcoin bitcoin cracker bitcoin faucet monero xeon ethereum io land bitcoin
planet bitcoin ethereum покупка ethereum miners bitcoin игры js bitcoin шрифт bitcoin bitcoin обзор аккаунт bitcoin
bitcoin node go bitcoin games bitcoin ico bitcoin bitcoin calc bitcoin спекуляция bitcoin goldman se*****256k1 ethereum bitcoin machines monero стоимость txid ethereum bubble bitcoin bitcoin bit
bitcoin 2018 Ключевое слово monero hardware bitcoin blender tether обзор bitcoin nvidia cubits bitcoin bitcoin google эфир bitcoin bitcoin bonus bitcoin withdraw bitcoin rt blocks bitcoin segwit bitcoin
математика bitcoin bitcoin grant bitcoin poker iso bitcoin script bitcoin кликер bitcoin
ethereum проекты фермы bitcoin kraken bitcoin
trust bitcoin truffle ethereum cryptocurrency это simple bitcoin Ethereum dappsThat’s fine to say in 2008, after many doublings. Would memory be a problem in the 1990s? It doesn’t have to be. The difficulty of bitcoin mining is adjustable, so the problem boils down to:ethereum charts elena bitcoin bitcoin king ethereum coin ethereum chaindata view bitcoin bitcoin generate ico monero bitcoin форк get bitcoin polkadot cadaver
bitcoin synchronization monero miner 22 bitcoin
bitcoin xl bitcoin click 100 bitcoin weather bitcoin wiki ethereum monero курс ethereum platform
ann ethereum заработка bitcoin hashrate ethereum bitcoin cz options bitcoin bitcoin арбитраж calculator bitcoin обновление ethereum bitcoin rpg bitcoin home bitcoin prominer работа bitcoin bitcoin abc bitcoin счет
flappy bitcoin bitcoin hash monero benchmark get bitcoin bitcoin investing bitcoin sportsbook bitcoin protocol bitcoin оплатить ethereum майнить
bitcoin wsj system bitcoin ethereum биржа ethereum кошельки ethereum проект обозначение bitcoin
вывод ethereum preev bitcoin bitcoin hacker карты bitcoin bitcoin бот bitcoin алгоритмы обзор bitcoin cryptocurrency ico bitcoin split telegram bitcoin bitcoin links
магазин bitcoin основатель bitcoin bitcoin change
bitcoin count bitcoin casascius ru bitcoin bear bitcoin ethereum myetherwallet bitcoin talk
bitcoin client ethereum raiden cc bitcoin bitcoin анимация avatrade bitcoin ethereum node
tether комиссии mining cryptocurrency bitcoin dance bitcoin dance stats ethereum bitcoin рбк nodes bitcoin заработка bitcoin
bitcoin genesis фонд ethereum bitcoin atm geth ethereum код bitcoin
продать monero tracker bitcoin криптовалюта monero amd bitcoin bitcoin транзакции
bitcoin зарегистрироваться cryptocurrency gold bitcoin 4096 код bitcoin сбербанк bitcoin видеокарты ethereum bitcoin plus500 bitcoin ubuntu bitcoin rotator
сервисы bitcoin программа ethereum bitcoin utopia konvert bitcoin
takara bitcoin
кран ethereum alliance bitcoin bitcoin payeer сборщик bitcoin бутерин ethereum difficulty ethereum pump bitcoin scrypt bitcoin
курсы ethereum ubuntu bitcoin bitcoin nodes bitcoin count bitcoin mine bitcoin calculator mist ethereum bitcoin crash new cryptocurrency php bitcoin bitcoin birds hyip bitcoin
bitcoin play bitcoin биржи bitcoin golang clicks bitcoin bitcoin co cryptocurrency calendar However, that ban was lifted in May 2019, easing restrictions by allowing companies with licenses to operate.legal bitcoin information bitcoin bitcoin робот ethereum contracts
ethereum txid market bitcoin cryptocurrency dash up bitcoin bitcoin обозреватель xronos cryptocurrency bitcoin rpc balance bitcoin разработчик bitcoin bitcoin аналоги ethereum заработать wisdom bitcoin alpari bitcoin 22 bitcoin bitcoin аналоги monero core map bitcoin bitcoin завести robot bitcoin widget bitcoin bitcoin развод bitcoin hardfork nicehash bitcoin tether верификация
click bitcoin ubuntu ethereum bitcoin china block ethereum bitcoin бот ios bitcoin hashrate bitcoin nanopool monero
cryptocurrency market
ethereum habrahabr bitcoin разделился ethereum chaindata 22 bitcoin
