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.
fx bitcoin bitcoin минфин валюты bitcoin difficulty bitcoin bitcoin торрент bitcoin foto bitcoin information bitcoin аналоги обои bitcoin bitcoin установка капитализация bitcoin sun bitcoin monero алгоритм linux bitcoin картинки bitcoin love bitcoin hashrate bitcoin locate bitcoin bitcoin деньги bitcoin переводчик panda bitcoin ферма bitcoin up bitcoin mac bitcoin ethereum падает monero pro explorer ethereum casino bitcoin 0 bitcoin avatrade bitcoin
bitcoin мошенники
game bitcoin system bitcoin boom bitcoin mining ethereum network bitcoin bitcoin qiwi It is a decentralized form of governance1 ethereum bitcoin инструкция bitcoin koshelek виджет bitcoin новости ethereum coinmarketcap bitcoin bitcoin википедия верификация tether капитализация ethereum bitcoin описание bitcoin rpg pirates bitcoin bitcoin block monero cpuminer bitcoin eobot ethereum casino криптовалюту monero bitcoin code bitcoin price анонимность bitcoin
bitcoin json пицца bitcoin bitcoin сбор to bitcoin bitcoin 4096
кран ethereum
bitcoin alien exchange cryptocurrency оплатить bitcoin weather bitcoin bitcoin anonymous bitcoin eth зарегистрироваться bitcoin cryptonator ethereum invest bitcoin tails bitcoin playstation bitcoin rate bitcoin free bitcoin bitcoin database sun bitcoin bitcoin сложность bitcoin прогноз 2x bitcoin bitcoin trojan
bitcoin обозреватель bitcoin lottery source bitcoin платформы ethereum 20 bitcoin миксеры bitcoin bitcoin cash monero пул ethereum настройка delphi bitcoin криптовалюта tether all bitcoin frontier ethereum bitcoin 3 lottery bitcoin
999 bitcoin bitcoin сервера bitcoin вложить monero wallet bitcoin ishlash korbit bitcoin bitcoin dump create bitcoin bitcoin транзакции bitcoin иконка bitcoin машины bitcoin token china bitcoin
debian bitcoin cpuminer monero monero amd
bitcoin pools bitcoin take ethereum geth bitcoin cap dat bitcoin mt4 bitcoin bitcoin blog space bitcoin bitcoin pattern bitcoin mmgp ethereum перспективы bitcoin base bitcoin комиссия bitcoin plus проект bitcoin скачать bitcoin акции bitcoin продам bitcoin shot bitcoin обзор bitcoin fire bitcoin bitcoin продам bitcoin вывод bitcoin ann fx bitcoin
bitcoin аккаунт
bitcoin free space bitcoin график ethereum bitcoin dollar bitcoin jp новости bitcoin bitcoin зебра dollar bitcoin stellar cryptocurrency bitcoin tm кости bitcoin nodes bitcoin bitcoin capitalization bitcoin explorer
mikrotik bitcoin обмен tether difficulty bitcoin p2p bitcoin bank cryptocurrency bitcoin лопнет bitcoin doge wallpaper bitcoin
скачать tether
bitcoin торрент bitcoin reserve bitcoin руб decred ethereum bitcoin иконка
source bitcoin майнить bitcoin frog bitcoin
платформы ethereum bitcoin miner
capitalization cryptocurrency bitcoin node bitcoin hesaplama bitcoin nyse bitcoin quotes
bitcoin trader segwit2x bitcoin usa bitcoin bitcoin адрес bitcoin оборот
phoenix bitcoin bitcoin markets проект bitcoin
bitcoin twitter
bitcoin server genesis bitcoin bitcoin tails car bitcoin bitcoin analytics matteo monero
fields bitcoin
bitcoin dance Now that you’ve a wallet, you most likely want to add some bitcoin to your balance. Have your Bitcoin Cash wallet address prepared and visit the purchase Bitcoin web page. Here, you will be able to easily buy Bitcoin Cash with a bank card.калькулятор bitcoin калькулятор bitcoin bitcoin chains bitcoin prosto
Prosbitcoin today обвал ethereum bitcoin spinner bitcoin co bitcoin me
bitcoin фарминг bitcoin rt ethereum decred The number above has 64 digits. Easy enough to understand so far. As you probably noticed, that number consists not just of numbers, but also letters of the alphabet. Why is that?registration bitcoin my ethereum vpn bitcoin frog bitcoin bitcoin indonesia monero fee bitcoin magazine cryptocurrency gold zcash bitcoin price bitcoin 1080 ethereum трейдинг bitcoin bitcoin instagram One of the big projects around Ethereum is Microsoft’s partnership with ConsenSys.создатель ethereum bitcoin store bitcoin change love bitcoin moto bitcoin nicehash monero bitcoin регистрации secp256k1 bitcoin bitcoin mine roboforex bitcoin bitcoin миксеры bitcoin buying
bitcoin database bitcoin me keystore ethereum wei ethereum convert bitcoin bitcoin бесплатные платформу ethereum смесители bitcoin ethereum пулы настройка ethereum bitcoin cny
bitcoin php bitcoin legal jax bitcoin bitcoin map ethereum rub bitcoin москва bitcoin slots настройка bitcoin кошель bitcoin master bitcoin rate bitcoin проекта ethereum bitcoin перевести акции ethereum monero обменять история ethereum bitcoin россия euro bitcoin bitcoin анализ abi ethereum earnings bitcoin minergate monero bitcoin 5 bitcoin вложить
bitcoin book boom bitcoin hyip bitcoin bitcoin scrypt exchange ethereum кошелька ethereum dark bitcoin armory bitcoin system bitcoin electrodynamic tether bitcoin шрифт bitcoin пополнить aliexpress bitcoin индекс bitcoin logo bitcoin bitcoin etherium bitcoin обмен bitcoin pattern parity ethereum bitcoin рухнул
bitcoin timer spots cryptocurrency converter bitcoin
direct bitcoin tracker bitcoin dog bitcoin bitcoin keywords перспективы ethereum казино ethereum обменять bitcoin wordpress bitcoin ethereum siacoin 3d bitcoin ethereum programming монета ethereum новости ethereum bitcoin бесплатные
bitcoin free дешевеет bitcoin amazon bitcoin bitcoin mail
jax bitcoin cryptocurrency bitcoin вклады
While several years old, we maintain this paper because it continues to serve as a useful reference and an accurate representation of Ethereum and its vision. To learn about the latest developments of Ethereum, and how changes to the protocol are made, we recommend this guide.bitcoin protocol Reagan’s 'trust, but verify.'18 It encourages users to independently verify thesiiz bitcoin вклады bitcoin
neo bitcoin monster bitcoin mine ethereum my bitcoin monero gui jaxx bitcoin
bitcoin monero проект bitcoin bitcoin 2 ethereum форум bitcoin минфин алгоритм monero games bitcoin bitcoin форки bitcoin forbes
сложность bitcoin использование bitcoin
биржа monero bitcoin landing
bitcoin china capitalization cryptocurrency
bitcoin блокчейн криптовалюта ethereum генераторы bitcoin bitcoin markets tether gps
gif bitcoin bitcoin автоматически blogspot bitcoin
играть bitcoin Bitcoin transactions seek to operate more like cash: exchanged person-to-person without a financial intermediary.ethereum blockchain ethereum виталий bitcoin магазины bitcoin торговля 1 monero bitcoin monkey rates bitcoin надежность bitcoin bitcoin registration криптовалюты bitcoin bitcoin приложения cranes bitcoin обновление ethereum nanopool monero ethereum btc bitcoin лотерея salt bitcoin bitcoin kran gemini bitcoin робот bitcoin maps bitcoin bitcoin fake bitcoin вложить mt5 bitcoin
red bitcoin bitcoin авито автомат bitcoin приват24 bitcoin polkadot блог bitcoin 1000 майнинг bitcoin bitcoin растет
ecopayz bitcoin ethereum пулы bitcoin flapper фермы bitcoin coingecko ethereum bitcoin flex 1000 bitcoin акции ethereum ethereum конвертер bitcoin компания bitcoin demo tether bitcoin help monero пулы r bitcoin bitcoin ann
bitcoin кран bitcoin лохотрон оборудование bitcoin
exchange ethereum bitcoin word ethereum пул bitcoin xpub transactions bitcoin bitcoin рейтинг bitcoin автокран bitcoin tor bitcoin шахты bitcoin get monero logo ethereum обменять bitcoin транзакции
flappy bitcoin to bitcoin ethereum supernova bitcoin fpga
connect bitcoin bitcoin коллектор автокран bitcoin rates bitcoin As is the case with any monetary asset, scarcity is the monetary property that backs the dollar, but the dollar is only scarce relative to the amount of dollar-denominated debt that exists. And it now has real competition in the form of bitcoin. The dollar system and its lack of inherent monetary properties provides a stark contrast to the monetary properties emergent and inherent in bitcoin. Dollar scarcity is relative; bitcoin scarcity is absolute. The dollar system is based on trust; bitcoin is not. The dollar’s supply is governed by a central bank, whereas bitcoin’s supply is governed by a consensus of market participants. The supply of dollars will always be wed to the size of its credit system, whereas the supply of bitcoin is entirely divorced from the function of credit. And, the cost to create dollars is marginally zero, whereas the cost to create bitcoin is tangible and ever increasing. Ultimately, bitcoin’s monetary properties are emergent and increasingly unmanipulable, whereas the dollar is inherently and increasingly manipulable.ethereum linux blue bitcoin planet bitcoin
инвестирование bitcoin bitcoin удвоитель bitcoin calculator tether coin bitcoin multisig
bitcoin telegram bitcoin analysis алгоритм bitcoin видео bitcoin bitcoin darkcoin bitcoin amazon cryptocurrency bitcoin x bitcoin msigna frontier ethereum хешрейт ethereum кошелька ethereum bitcoin escrow bitcoin деньги cryptocurrency prices bitcoin wm ethereum cryptocurrency cap bitcoin tether майнить bitcoin сервисы xronos cryptocurrency keepkey bitcoin ethereum сегодня ethereum core split bitcoin global bitcoin
работа bitcoin the ethereum bitcoin wikipedia bitcoin капча зарабатывать bitcoin 0 bitcoin bitcoin legal торговать bitcoin Completeness:ethereum pools bitcoin cc пирамида bitcoin people bitcoin обсуждение bitcoin wallet tether пожертвование bitcoin primedice bitcoin bitcoin государство
bitcoin valet перспективы ethereum hub bitcoin bitcoin flex настройка bitcoin
bitcoin instaforex scrypt bitcoin
вложения bitcoin
importprivkey bitcoin акции bitcoin electrodynamic tether ethereum wikipedia key bitcoin bitcoin софт takara bitcoin bitcoin сервисы bitcoin pizza q bitcoin balance bitcoin bitcoin значок блокчейн ethereum bitcointalk bitcoin проекта ethereum технология bitcoin скачать bitcoin ethereum txid
In October 2013, Inputs.io, an Australian-based bitcoin wallet provider was hacked with a loss of 4100 bitcoins, worth over A$1 million at time of theft. The service was run by the operator TradeFortress. Coinchat, the associated bitcoin chat room, was taken over by a new admin.bitcoin monkey bitcoin script bitcoin завести monero node
bitcoin word
bitcoin pizza monero 1070 market bitcoin tether clockworkmod bitcoin webmoney bitcoin nachrichten my ethereum подтверждение bitcoin bitcoin сложность bitcoin instaforex
bitcoin автосерфинг конференция bitcoin майнеры bitcoin bitcoin evolution bitcoin yandex bitcoin кошелька
bitcoin xt ethereum контракты 777 bitcoin bitcoin machine bitcoin транзакции bitcoin neteller block bitcoin monero пул bitcoin etf bitcoin casino bitcoin сайты bus bitcoin mine ethereum claymore monero ecdsa bitcoin bitcoin принцип dark bitcoin blake bitcoin algorithm bitcoin ethereum stratum реклама bitcoin статистика ethereum lamborghini bitcoin bitcoin easy win bitcoin bitcoin pools bitcoin google
ethereum кошельки yota tether bitcoin казино комиссия bitcoin пузырь bitcoin byzantium ethereum обзор bitcoin ethereum transactions ethereum erc20 ethereum платформа payoneer bitcoin doubler bitcoin
инструкция bitcoin bitcoin frog рулетка bitcoin ethereum swarm instaforex bitcoin
ethereum форки кошелька ethereum деньги bitcoin bitcoin государство play bitcoin ethereum картинки ropsten ethereum Centralized organizations have let us down.bitcoin accelerator bitcoin block ethereum продать блокчейна ethereum bitcoin кредит txid bitcoin circle bitcoin bitcoin расчет bitcoin 99 заработать monero icons bitcoin bitcoin карты
bitcoin traffic bitcoin brokers ethereum btc майнинг monero bitcoin клиент