The first encrypted digital currency, "bitcoin", appeared in 2008. Its concept of distributed payment network is quite different from that of old solutions, and its potential and perfection still take a certain amount of time. Other inventions and creation, such as electricity, cars, aircraft, mobile communications, and the Internet, are also developed through the use of the masses. To travel around the world and to communicate anytime and anywhere, not long ago seems to be a fantasy and today become a reality, directly or indirectly to improve the quality of life for everyone. The most important value of encrypting digital money is that it also guarantees a degree of freedom - personal financial freedom. The wide spread of this technology will lead to a series of major changes in many fields.
To omit the technical details, bitcoin can be regarded as an electronic payment system, which uses a currency with limited quotas (such as gold), and gradually reduces the amount of exploitation, such as gold, and runs through a secure distributed system. The bitcoin network automatically guarantees transactions by using encryption technology and the latest information technology to provide security and reliability. Before the advent of bitcoin, all payment systems were based on central authority (such as banks, payment services, etc.), and customers opened their accounts and operated. Therefore, under the permission of the bank, the transaction can be accomplished by "confirmation", "guarantee" and "execution". At the same time, users need to be fully dependent on banks and other superstructures. Money can be monitored, frozen, seized, and inflationary, and so on in the banking system
The bitcoin system is different. Bitcoin technology makes users do not need the help of the third party. All transactions are centralized by bitcoin and self checking and authenticated by network. Its function is also distributed, just like Torrent network. Bitcoin system does not belong to anyone, its users are equal, the source code of the program is open and anyone can see it, so as to ensure independence, fairness and safety. To create an account and start using bitcoin, the user does not need to show identity information or get approval - just connect the network and install a program wallet. At the same time, all transactions can be carried out directly, and there will be no freezing and other issues. Bitcoin can not only be converted into national currency, but also used directly in some stores.
The independence of bitcoin eliminates the external impact of the network, which is a key advantage compared to the banking system. The new bitcoin timetable obtained by algorithm has been planned. The next decades' issuance directly excludes the uncontrollable inflation in legal tender. Without intermediaries, there is no transaction fee or very few. The continuous operation of the network ensures that users can automatically remit any amount within 10 minutes without any intermediaries, restrictions and risks. Not long ago, it was hard to imagine, and now, as long as it can be connected to the network, all this can become a reality.
However, with the passage of time, even bitcoin has exposed limitations and shortcomings. This is normal, because it is impossible to try to create a stable and perfect system for the first time. The development team has solved many problems of bitcoin, and some other problems have been repaired by external systems or services, but at the same time, it has slightly deviated from the principle of "de centralization" and "independence" as the premise to succeed. But there are still some remaining limitations, which are difficult to overcome, or can only be detorbed by various skills instead of correcting, which obscures the fundamental defects of the system.
Therefore, the other aspect of the high reliability and stability of bitcoin is the low adaptability of its architecture, which restricts the further development of the project. In recent years, a few basic functions have been improved by the bitcoin network, and many new functions are "external programs" made by the central organization. Though there are still many limitations, bitcoin is still running safely today. As we all know, it is still the most popular and demanding digital encryption currency.
