What is Bitcoin?
Bitcoin - Internet money is the new trend in the whole issue of online payments. Bitcoin's popularity has long passed the stage of suspicion, and its technology is becoming available for sophisticated implementations such as smart contracts and automated agreements. The Bitcoin platform actually enables you to program money on the BitToken protocol, creating tools and initiatives that do not require third party involvement (such as financial intermediaries such as banks and credit card companies) that were not possible before. The Bitcoin is therefore not only money, but also the token that triggers the protocol. The entire payment system, instructions and chips are documented in a joint ledger of hundreds of millions of computers in the world, which sits in the cloud and tells the story of all the Bitquins from the first chapter. In fact, Bitcoin is a language (protocol), money (currency-token), joint book (block chain), and encryption (cryptography), the combination of which prevents forgery. This invention opens doors to initiatives in all fields.
Send money and pay for goods and services
Each Bitcoin user has a public address and a private key that matches it. Bitcoins are associated with a specific public address that has a private key owned by that user. In order to transfer Bitcoin, the user must do the following: To create a message in which he specifies the address to which he wishes to send the Bitcoin, specify how much Bitcoin wants to send (even fragile Bitcoin), sign the message with his private key , And finally broadcast the message to the network.
As soon as the network confirms that the message is valid the amount of BitKine in the message will be assigned to the recipient's public address, and only he, as the owner of its private key can use them. The Bitcoin transfer method creates a new world order in money transfers in view of its simplicity, efficiency and speed (in a matter of seconds). The great computing power at the base of the network makes it very difficult to change and / or hack. In order to change some of the set of rules in the protocol, at least 51% of the total computing power must be invested, which may cost many resources and make the issue non-economic. This computing power coupled with strong encryption (which can not be counterfeited) provides a sense of security to users, who are growing daily.
Money software prove ownership
In the message that is transmitted to the BitKinoin network, you can insert a code snippet, a program in the protocol language of the BitKine network, which allows you to do other things besides instructing to transfer a number of Bitquins from one address to another. You can, for example, instruct the network to approve a transfer only if there is more than one private key signature, or X signatures from a possible Y. In other words, control over transfers can be in the hands of more than one person and requires the approval of all private key holders. There are other possibilities of conditioning transfer approval in all kinds of conditions, as far as imagination. There is even the possibility of saving the private key in memory, known as a "brain wallet" through which the owner of the public address uses a sentence or a password that he recites. Like the control and ownership of a private developer's money under the BitToken protocol, control and ownership of copyright can also be exercised. Branding, patents and copyrights are an industry that has a hard time coping with the new digital age. Today, everything can be distributed online for free, quickly and without accountability to the creators.Describe the situation in which you can create something and prove to the whole world that it is free of your own creation, without the involvement of an attorney, without patenting or representing a production company or branding.Excluding all intermediaries will encourage individuals to directly reward the artists and creators, Imagine that you have heard a beautiful song and the representation of the author's address is the song itself (using one-way encoding called 'fire'), in fact the owner of the private key is the owner of the piece, Book, film and more ... All digital information can be represented and identified on the Bitcoin network including date, time and identity creator.
Simplify existing systems and let them run
The Bitcoin protocol resolves a major problem in a decentralized computer network. The protocol offers a real solution to the problem - how to create an agreement between endless computerized systems based on data that is updated in real time. This solution can be used to decentralize other systems. For example: Neimkin is another cryptographic currency that uses Bitcoin technology to decentralize ownership and ownership of Internet domain addresses. In fact, it is possible to decentralize, streamline and simplify the control of many systems. Although it is not possible to open a bank account, you can easily let the software manage a Bitcoin wallet. So software can run a business for anything. For example, the software can hire a server in the cloud, sell part of the bandwidth to cover costs, and through the profits to rent more computing power in the cloud. The software can also replicate itself to give software, loan to its Bitcoin software, and thus grow into a franchise network of software. If the business model is true the sky is the limit.
Bitcoin in coins and paper
The shiny coins you see many times in pictures in newspapers and on television are actually a kind of physical wallet. On one side of the coin, its value is indicated by the bitcoin symbol, and on the other side there is a holgram sticker. Behind the sticker is a private key for an address that holds the Bitcoin. The sticker has the public address, so it is easy to check at any given time whether the address actually holds the quantity of the specified bitcoin. If you peel off the hologram sticker it changes color and you can easily see a normal eye being used, in which case the currency loses its value. Thus, the holder of the physical currency holds Bitcoin. The common coins of Cascais are considered reliable, as long as the holgram is complete and standard. There are other options for purses designed to hold a Bitcoin, such as the trunk, which is a wallet in a mobile memory, and even paper bags that can even be made on their own. The ability to hold Bitcoin physically and physically is very simple (you can read a lot about it online). This option provides security to the user that the money is not sitting on the computer and / or online on the Internet, which are exposed to hackers and various hardware problems. These wallets sit in a physical place outside the Internet, until the user chooses to return them to the network.