What is Bitcoin? – A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending. We propose a solution to the double-spending problem using a peer-to-peer network. The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work. The longest chain not only serves as proof of the sequence of events witnessed, but proof that it came from the largest pool of CPU power. As long as a majority of CPU power is controlled by nodes that are not cooperating to
attack the network, they’ll generate the longest chain and outpace attackers. The network itself requires minimal structure. Messages are broadcast on a best effort basis, and nodes can leave and rejoin the network at will, accepting the longest proof-of-work chain as proof of what happened while they were gone.
Read the entire bitcoin whitepaper here: https://bitcoin.org/bitcoin.pdf
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Bitcoin is becoming a worldwide phenomenon and it was only a matter of time before ideas like this started to pop up. The idea behind BitPlastic is that money can be converted between Bitcoins and real cash seamlessly. The BitPlastic system is great, it allows users to instantly send and receive payments to their BitPlastic wallet with the addition of being able to withdraw cash, pay at POS terminals or shop online, all anonymity. Overall the concept is absolutely outstanding is hard to overlook. www.BitPlastic.com
By now you’ve probably heard in the news and media about Bitcoin. What is it? Although a technical description of Bitcoin sounds like a foreign language, it boils down to a mathematical algorithm that only a computer can solve. This algorithm is a puzzle that has a difficulty, and the more puzzle pieces that are solved by computers around the world, the more the difficulty per puzzle piece increases. These pieces are the infamous Bitcoins, and they have a real-world currency value. Not only that, but there are only a finite amount of Bitcoins that can ever be produced — 21 million. The process of solving these mathematical problems leading to Bitcoins is called “mining”.
In the beginning, mining Bitcoins was a simple affair, accomplished by using one’s computer CPU to attack the Bitcoin puzzle. This was relatively simple, and the dollar value of Bitcoins was low. As the complexity of the Bitcoin mining process increased, it no longer became feasible to mine a Bitcoin block using CPUs alone. This ushered in the next generation of Bitcoin mining, which led miners to use their graphics card processors known as GPUs. The rise of GPU mining lead to increasing discovery of Bitcoin blocks, and their popularity rose in kind. Today, GPU mining has been eclipsed by an even more powerful technology using application specific integrated circuit (ASIC). These are processors built solely to crunch numbers related to the Bitcoin algorithm.
So why would one want to use Bitcoins (BTC)? By far the most popular reason is that they are virtually untraceable. Bitcoins are stored in digital wallets, and combined with software such as TOR and virtual private networks transactions using BTC are almost untraceable. The anonymous nature of BTC is its true power. Untied to any national currency or reserve, BTC is truly the currency of the internet.
Why has Bitcoin value seemed to skyrocket in the past few months? With its ever increasing popularity, Bitcoin markets have been upended by rampant speculation. Investors trying to make a quick buck have skewed Bitcoin’s value to unheard of extremes. Coupled with the meteoric rise in required computational power required to mine one single Bitcoin block, the days of the garage enthusiast has passed.
Bitcoin integration into everyday society is rapidly increasing. You may even have seen signs in shop windows advertising that Bitcoins are now accepted as payment. One day soon you will be able to pay for goods with a Bitcoin credit card. The revolutionary nature of Bitcoin makes it truly an economic game changer.
“At some point I became convinced there was a way to do this without any trust required at all and couldn’t resist to keep thinking about it.”
“Lost coins only make everyone else’s coins worth slightly more. Think of it as a donation to everyone.”
“Sorry to be a wet blanket. Writing a bitcoin description for general audiences is bloody hard. There’s nothing to relate it to.”