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.
nanopool ethereum
pps bitcoin
bitcoin buying ethereum перевод
миксер bitcoin
bitcoin changer qiwi bitcoin bitcoin приложение bazar bitcoin bitcoin exchanges yandex bitcoin ethereum обмен magic bitcoin bitcoin scan запуск bitcoin bitcoin genesis зарабатывать bitcoin tether wallet win bitcoin ethereum android roll bitcoin satoshi bitcoin time bitcoin iota cryptocurrency
bank bitcoin roulette bitcoin bitcoin is стоимость monero таблица bitcoin bitcoin pdf bitcoin работать ropsten ethereum bitcoin курсы tradingview bitcoin рулетка bitcoin bitcoin руб monero алгоритм bitcoin usd bitcoin air
bitcoin инвестирование ru bitcoin polkadot bitcoin куплю cryptocurrency bitcoin
bubble bitcoin bitcoin 2000
bitcoin приложение ethereum 1070 bitcoin 1000 транзакции ethereum вывод monero bitcoin dark bitcoin котировки bitcoin google халява bitcoin ethereum stratum ethereum картинки майнер ethereum bitcoin биткоин exchange ethereum avto bitcoin usb tether decred ethereum monero купить
prune bitcoin ethereum бесплатно мерчант bitcoin bitcoin online
ethereum dao валюта tether multibit bitcoin up bitcoin buy tether ethereum перевод ethereum курсы monero стоимость demo bitcoin abi ethereum atm bitcoin bitcoin weekly цены bitcoin geth ethereum bitcoin formula bitcoin neteller bitcoin work bitcoin group cpa bitcoin bitcoin selling bitcoin заработать flypool monero polkadot cadaver ethereum акции bitcoin q bitcoin кошельки bitcoin проект ethereum асик bitcoin обменники ethereum swarm
bitcoin форекс
bitcoin fund ocean bitcoin bitcoin халява key bitcoin новые bitcoin
fast bitcoin
flappy bitcoin bitcoin protocol bitcoin background bitcoin center bonus ethereum pk tether bitcoin анализ вывод monero scrypt bitcoin rpc bitcoin How will this benefit large industries?all bitcoin bitcoin farm china bitcoin cryptocurrency tech bitcoin mine
happy bitcoin payable ethereum bitcoin weekend майнинг ethereum
bitcoin girls eth bitcoin
bitcoin capital ubuntu bitcoin difficulty monero games bitcoin monero прогноз
фарминг bitcoin вебмани bitcoin bitcoin play bitcoin faucets blocks bitcoin ethereum вывод
nanopool monero bitcoin traffic установка bitcoin planet bitcoin bitcoin tor сколько bitcoin bitcoin 4 iphone bitcoin bitcoin coinmarketcap
проект ethereum отдам bitcoin monero minergate bitcoin 3 8 bitcoin бот bitcoin ethereum dag форум bitcoin bitcoin курс андроид bitcoin bitcoin адреса capitalization cryptocurrency monero miner monero ann erc20 ethereum bitcoin tools cryptocurrency trading cgminer monero
bitcoin приложения обзор bitcoin ninjatrader bitcoin bitcoin conference bitcoin магазины Free bitcoin wallets are available for all major operating systems and devices to serve a variety of your needs. For example, you can install an app on your mobile device for everyday use or you can have a wallet only for online payments on your computer. In any case, choosing a wallet is easy and can be done in minutes.Finney's RPoW system differed from a PoW system in permitting the random exchange of tokens without repeating the work required to generate them. After someone had 'spent' a PoW token at a website, the website's operator could exchange that 'spent' PoW token for a new, unspent RPoW token, which could then be spent at some third-party website similarly equipped to accept RPoW tokens. This would save the resources otherwise needed to 'mint' a PoW token. The anti-counterfeit property of the RPoW token was guaranteed by remote attestation. The RPoW server that exchanges a used PoW or RPoW token for a new one of equal value uses remote attestation to allow any interested party to verify what software is running on the RPoW server. Since the source code for Finney's RPoW software was published (under a BSD-like license), any sufficiently knowledgeable programmer could, by inspecting the code, verify that the software (and, by extension, the RPoW server) never issued a new token except in exchange for a spent token of equal value.payoneer bitcoin is bitcoin bitcoin bat nvidia bitcoin dogecoin bitcoin fire bitcoin nxt cryptocurrency bitcoin map bitcoin in bitcoin banks bitcoin background
bitcoin statistic
bitcoin перспективы rate bitcoin bitcoin матрица
fox bitcoin ethereum core love bitcoin zcash bitcoin история bitcoin криптовалют ethereum cryptocurrency wallet monero xmr In any event, while historically intrinsic value, as well as other attributes like divisibility, fungibility, scarcity, durability, helped establish certain commodities as mediums of exchange, it is certainly not a prerequisite. While bitcoins are accused of lacking 'intrinsic value' in this sense, they make up for it in spades by possessing the other qualities necessary to make it a good medium of exchange, equal to or better than commodity money.bitcoin проверить blogspot bitcoin bitcoin matrix bitcoin co график monero ethereum asic machine bitcoin bitcoin telegram виджет bitcoin short bitcoin monero nvidia bitcoin script bitcoin fork
bitcoin fan bitcoin red mine ethereum bitcoin motherboard сбербанк ethereum bitcoin блок bitcoin сеть clockworkmod tether ethereum ico обменник bitcoin bitcoin магазин happy bitcoin биржа monero трейдинг bitcoin bitcoin gif платформ ethereum amazon bitcoin In the area of politics, Blockchain is being looked at by an organization called Follow My Vote, which is trying to combat election fraud at the ballot box.multibit bitcoin
ethereum pools ethereum network bitcoin webmoney bitcoin forbes форк ethereum cronox bitcoin оплата bitcoin bitcoin инструкция bitcoin проблемы bitcoin майнинга yota tether bitcoin phoenix bitcoin lucky bitcoin вложить обвал ethereum bitcoin играть список bitcoin алгоритм ethereum bitcoin phoenix bitcoin форум
ethereum info ethereum buy
bitcoin froggy bitcoin обсуждение ethereum пулы project ethereum bitcoin tm konverter bitcoin trust bitcoin to bitcoin bitcoin сколько bitcoin стоимость bitcoin greenaddress kong bitcoin polkadot блог kong bitcoin paypal bitcoin lamborghini bitcoin cryptocurrency
ethereum install bitcoin currency bitcoin torrent динамика ethereum bitcoin kurs заработок ethereum 0 bitcoin пожертвование bitcoin purse bitcoin 10000 bitcoin bitcoin заработок сложность ethereum monero wallet
kong bitcoin difficulty monero bitcoin 3 reddit bitcoin халява bitcoin ethereum обменять bitcoin hardfork bitcoin украина ethereum org bitcoin форум ethereum клиент remix ethereum bitcoin q captcha bitcoin bitcoin valet monero криптовалюта cryptocurrency trading краны monero bitcoin motherboard график bitcoin bitcoin компьютер bitcoin растет bitcoin википедия bitcoin вконтакте bitcoin sberbank unconfirmed monero bitcoin сложность bitcoin фарминг ethereum прогноз monero продать bitcoin деньги брокеры bitcoin bitcoin ферма инструкция bitcoin статистика bitcoin minecraft bitcoin bitcoin игры airbitclub bitcoin bitcoin poloniex bitcoin 0 биржа ethereum monero pro instant bitcoin captcha bitcoin обменники bitcoin bitcoin форк
bitcoin payment вложить bitcoin сложность bitcoin pps bitcoin обменники bitcoin продажа bitcoin wild bitcoin bitcoin aliexpress
daemon monero nicehash ethereum bitcoin rub blocks bitcoin майнинг tether mercado bitcoin удвоить bitcoin трейдинг bitcoin
alpari bitcoin
bitcoin шахта bitcoin flex ethereum платформа bitcoin electrum bitcoin co bitcoin generator amazon bitcoin bitcoin purse monero dwarfpool мастернода bitcoin birds bitcoin bitcoin автоматический обвал bitcoin bitcoin evolution ethereum forks bitcoin bloomberg википедия ethereum ethereum ubuntu bitcoin usb monero address blocks bitcoin monero cpuminer bitcoin hacker
bitcoin настройка bitcoin продаю bitcoin linux ethereum avatrade bitcoin today bitcoin puzzle bitcoin bitcoin рейтинг bitcoin оплата collector bitcoin форум bitcoin bitcoin рубль bitcoin primedice decred ethereum ethereum упал bitcoin club куплю bitcoin ethereum падает bitcoin save multiply bitcoin decred ethereum Solving difficult puzzles to make Ether requires your system to run full throttle at all times. It costs a lot in electricity bills. The hardware wears out much faster than usual too.bitcoin base валюта tether bitcoin journal matteo monero bitcoin online bitcoin help ethereum claymore автомат bitcoin uk bitcoin разработчик bitcoin monero nvidia tether chvrches secp256k1 bitcoin монеты bitcoin
bitcoin jp bitcoin minecraft takara bitcoin mac bitcoin lite bitcoin ethereum complexity
bitcoin пожертвование tether gps
добыча bitcoin monero gpu бесплатный bitcoin bitcoin solo bitcoin 5 bot bitcoin розыгрыш bitcoin 2016 bitcoin bitcoin криптовалюта tether x bitcoin bitcoin wm
algorithm bitcoin обзор bitcoin txid bitcoin bitcoin iphone bitcoin ocean перспективы ethereum bitcoin сша ubuntu bitcoin
ethereum russia bitcoin mmm alpari bitcoin bitcoin ledger bitcoin комментарии bitcoin click ethereum contracts cryptocurrency price
ethereum shares ethereum core bitcoin sell
cubits bitcoin rotator bitcoin bitcoin bloomberg график monero bitcoin блок pixel bitcoin fast bitcoin
ethereum контракт bitcoin андроид coinmarketcap bitcoin flash bitcoin сервера bitcoin
cryptocurrency charts network bitcoin fake bitcoin avatrade bitcoin баланс bitcoin асик ethereum dwarfpool monero bitcoin торговля monero benchmark tether js рейтинг bitcoin claymore monero vector bitcoin
bitcoin 50 999 bitcoin exmo bitcoin stealer bitcoin bitcoin лучшие bitcoin cryptocurrency биржа ethereum играть bitcoin
fake bitcoin poloniex ethereum
bitcoin generate monero майнить эмиссия ethereum аналоги bitcoin пример bitcoin secp256k1 ethereum ethereum siacoin mt5 bitcoin 6000 bitcoin bitcoin кликер coin ethereum bitcoin greenaddress биржа ethereum goldsday bitcoin bitcoin скачать bitcoin ios sportsbook bitcoin bitcoin tm валюта tether bitcoin сегодня дешевеет bitcoin cryptonote monero bitcoin чат bitcoin markets tokens ethereum ava bitcoin япония bitcoin япония bitcoin основатель bitcoin ads bitcoin forecast bitcoin ethereum rig cryptocurrency calendar wikileaks bitcoin проект ethereum pos bitcoin bitcoin unlimited bitcoin вклады криптовалюту bitcoin widget bitcoin bot bitcoin bitcoin оборот bitcoin dynamics подтверждение bitcoin bitcoin бонусы проверка bitcoin bitcoin accelerator exchange bitcoin exchange cryptocurrency ann monero coingecko bitcoin контракты ethereum
ethereum проблемы habr bitcoin ethereum картинки капитализация ethereum stellar cryptocurrency txid ethereum ethereum io конец bitcoin bitcoin торрент bitcoin foto bitcoin сайт bitcoin vpn расчет bitcoin bitcoin торговать birds bitcoin bitcoin alien collector bitcoin bitcoin суть аналоги bitcoin bitcoin google ethereum block bitcoin конвертер ethereum dao apple bitcoin bitcoin location ethereum падение explorer ethereum ethereum упал cryptocurrency calculator bitcoin links tether 4pda free monero bitcoin 2017 cubits bitcoin
отслеживание bitcoin bitcoin blocks bitcoin автомат платформу ethereum usb tether bitcoin farm cryptocurrency converter bitcoin играть майнить bitcoin ethereum получить блок bitcoin bitcoin aliens
bootstrap tether ethereum forks cryptocurrency wikipedia карты bitcoin проблемы bitcoin seed bitcoin bitcoin 10000 основатель ethereum vip bitcoin ads bitcoin games bitcoin monero client bitcoin split bitcoin получить сайты bitcoin приложение tether bitcoin wmx zcash bitcoin bitcoin qazanmaq asics bitcoin cryptocurrency reddit gift bitcoin bitcoin free china bitcoin bitcoin masters bitcoin сервисы bitcoin vector bitcoin cryptocurrency
bitcoin минфин dollar bitcoin сервисы bitcoin символ bitcoin
аналоги bitcoin bitcoin main продать ethereum cryptocurrency exchanges ethereum complexity bitcoin клиент bitcoin часы accelerator bitcoin отзывы ethereum stats ethereum cms bitcoin tether gps claymore ethereum reverse tether cryptocurrency перевод
autobot bitcoin coins bitcoin скачать tether tails bitcoin nodes bitcoin
byzantium ethereum bitcoin dollar кликер bitcoin jax bitcoin ethereum web3 coinbase ethereum bitcoin описание
bitcoin future 0 bitcoin ecopayz bitcoin bitcoin song bitcoin accelerator bitcoin news bitcoin investing hacking bitcoin расчет bitcoin 