What is the Bitcoin system? (Where is the Bitcoin system located?)

The Bitcoin system is an editorial by William (ID: William1913) and the author is William Chen, authorized by Odaily Star Daily.

In 2017, the price of Bitcoin rose from a few cents to around several hundred thousand US dollars. Now it is already April 2019. So what exactly is driving this price? How long can it last? Let’s take a look. 01 What is the Bitcoin system? Bitcoin is a peer-to-peer electronic cash protocol, a decentralized payment system, and a secure and scalable network. It is a form of currency that generates and stores transaction records using cryptographic algorithms.

Blockchain technology allows everyone to operate through smart contracts, such as Ethereum’s ETH, which is one of the tokens, and whenever someone wants to use it, they can deposit funds into the network. However, if you don’t do this, users won’t be able to transfer this money to others like any other platform.

Therefore, you can provide information services to various people through smart contracts. At this time, your bank account will become a digital currency. But if you want to purchase a certain type of service, you need to register an account, and then you will be vulnerable to hackers.

Because the operation of the Bitcoin system is anonymous, you can view your private key at any time and can modify the parameters or configuration files in the cryptographic settings at any time. Of course, there are certain risks involved in complex things like verifying identities and creating public keys (such as security issues with exchanges). 02 What are the characteristics of the Bitcoin system? The most popular system in the market is the Bitcoin system. In fact, there are many characteristics of the Bitcoin system, some of which are “one-click”, such as the “multisignature” function, which is very important because the Bitcoin system allows multiple nodes to collaborate with each other to ensure independence from each other and guarantee security. However, there are also many rumors that “one-key” is easier to identify than “a group of separate wallets”.

Simply put, “double spending” is similar to credit card companies. They usually choose an address to send transactions, but they actually send confirmation only after the receiving party has received the payment. And many merchants directly ship to them to avoid delays or even inability to receive payments. This is why most companies stop accepting customer payments before processing is completed. 03 Bitcoin mechanism design and economic model The main feature of the Bitcoin system is its unique structure: “The first-level consensus rules consist of two parts:

1. Block producers are responsible for bookkeeping and broadcasting the entire data chain;

2. Miners are responsible for maintaining the network and protecting the privacy of mining data. In addition, mining farm owners can adjust the scale of computing power, increase the hash rate, and reduce power consumption according to their own will, etc.

Where is the Bitcoin system located?

Editor’s note: This article comes from Xcongapp, the author is Xcong Sister, and it is authorized by Odaily Star Daily.

A few days ago, a netizen posted on Weibo asking, “Where is the Bitcoin system? What do you think about this?” In fact, many times this question is overlooked by people, “Does this mean the collapse of the Bitcoin system?”

First of all, it is the relationship between Bitcoin mining mechanism and traditional energy consumption. Currently, the major global electricity suppliers are government agencies in countries such as Venezuela, Brazil, and Mexico, which hold large amounts of oil resources and hydropower. The United States has about 70% of the US dollar reserve to cope with this crisis. In addition, due to the rise in cryptocurrency prices, some countries have proposed new regulatory requirements for cryptocurrency exchanges. However, the Bitcoin system itself has not been well resolved since its development. “We now have our own system.” – “China Finance” 2020 issue 3

Actually, if you regard the entire blockchain technology as a distributed database, then it is a decentralized ledger database.

But it needs to be clarified that although these data are generated by cryptographic algorithms, they do not exist independently, and there are many other issues such as difficulty in tracking and difficult to tamper with. Of course, this is also thanks to the Bitcoin community’s research on security, because each node must be able to verify their authenticity hash value. In addition, to prevent hacker attacks and prevent malicious software or third-party intrusion, most users use wallet addresses under their own control for transactions. However, there is still a long way to go to make everyone believe that an entity can do this.