Explain the principle and operation mechanism of Bitcoin

At present, there are two business opportunities that can make people rich overnight, one is Chinese real estate, the other is bitcoin. As the value of Bitcoin continues to soar, hackers have stolen bitcoin worth nearly $80 million from Bitcoin mining services, and they have made huge profits in just a few hours. It seems that the only one that can compete with Chinese real estate is bitcoin. It is.

On December 7, cybercriminals stole about 4,700 bitcoins from Slovenia's bitcoin mining and exchange service system, NiceHash (these bitcoins can be used to mine new bitcoins). Since September 2017, the value of Bitcoin has been rising sharply, rising from $3.780 to $16,000 in less than three months. According to current valuations, hackers managed to make money at $7.835 billion after visiting the company's system.

According to the British Broadcasting Corporation (BBC), hackers from outside the EU visited the NiceHash system around 18:00 GMT on December 7, and began stealing Bitcoin in three and a half hours. This news is also the latest information on currency encryption in the past year, and security researchers predict that this trend will only intensify in the coming year. The Bitcoin industry has become one of the top 10 industries for distributed denial of service (DDoS) attacks. NiceHash is working with local and international agencies to recover stolen Bitcoin.

Blackmailers and other cybercriminals are often drawn to emerging networking industries, especially those that are less protected. Due to the anonymity of the cryptocurrency and other factors, the theft tracking is difficult, and the attacker can make a lot of money, these factors are easy to become the motive for invasion and attack.

Bitcoin is a typical application of blockchain. The manipulation of bitcoin requires a private key. Bitcoin can randomly generate a bitcoin address, and each address has a corresponding private key, which is equivalent to the bank card number and corresponding password. No one can get it except the user himself, and the whole process is paid anonymously.

But for hackers, attacking large bitcoin mining systems and stealing bitcoin for illegal trading should not be difficult. The author of the hacker's world can't read it, so just talk about the trading principle of Bitcoin (from knewcoin Tencent video).

The technical articles on Bitcoin are dazzling, but most of the articles make people feel like they are in the clouds. Here are a few articles that have been published before.

Explain the principle and operation mechanism of Bitcoin

Bitcoin Top Ten Killer App

Read Ethereum, Ethereum, Bitcoin and Blockchain Technology

Through the above video, you must have a certain understanding of Bitcoin. Below, through the concise and popular explanation and popularization of Bitcoin, I believe that you can help you fully understand Bitcoin.

First, what is bitcoin?

Bitcoin is a kind of network virtual currency, the number is very limited, similar to the Q coins we played before. It can be exchanged for most countries' currencies, and you can also use Bitcoin to buy some virtual items, such as equipment in online games. As long as the software accepts payment, you can also use Bitcoin to purchase real-life items.

Technically, BitCoin is a digital currency in the form of P2P. Peer-to-peer transmission means a decentralized payment system. Unlike other currencies, Bitcoin does not rely on a specific currency institution for distribution. It is generated by a large number of calculations based on a specific algorithm.

Second, why is it so valuable?

Reason 1: Scarce. Has a very strong scarcity. The currency system has no more than 10.5 million in the first four years, and the total number will be permanently limited to 21 million, plus media hype.

Reason 2: Globalization. Cross-border remittances will go through a layer of foreign exchange control agencies. But if you use Bitcoin to trade, enter the digital address directly, click the mouse, wait for the p2p network to confirm the transaction, a lot of money will pass. Without any control agency, no cross-border transaction records will be left.

Reason 3: Low transaction costs. Free transfer of Bitcoin, only about 1 bit of transaction fee per transaction to ensure faster execution of the transaction. Bitcoin has no cumbersome quotas and formalities, and you can pay by knowing the other bitcoin address.

Reason 4: Decentralization. Completely centralized. Without an issuer, it is impossible to manipulate the number of issues. Its distribution and circulation is achieved through the open source p2p algorithm. Bitcoin relies entirely on the p2p network, no distribution center, so the outside cannot close it. Bitcoin prices may fluctuate and collapse, and many governments may declare it illegal (including China), but Bitcoin and Bitcoin's huge p2p network will not disappear.

Third, bitcoin and mining

Bitcoin exists in the digital space, hidden in a specific algorithm, and requires a lot of manpower and material resources to dig out, the so-called bitcoin "mining." The principle of mining is to search a 64-bit number through a computer, through repeated decryption, the purpose is to provide a required combination of numbers for the Bitcoin network, and 25 bitcoins if successful.

Fourth, how to develop bitcoin

Although Bitcoin has many of these advantages, even in the past year, the value of Bitcoin against the US dollar has risen by about a thousand times. But considering the price fluctuations, many people who want to invest in Bitcoin are still on the sidelines. Today, although many countries recognize the nature of bitcoin's currency payments. However, the governments of various countries will not really let Bitcoin arbitrarily circulate. After all, the growth of Bitcoin will inevitably affect the monetary system of each country. Virtual currency is the trend of future currency, but the future of bitcoin may evolve into an artificially regulated development.

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