Tuesday, July 18, 2017

Review of what we know about bitcoins

Just checking again since we are working for bitcoins its good to review the basic principles that is inherent with bitcoins when it was created by Nakamoto ? 

Did you know that it all started as a script here's the whitepaper of Satoshi Nakamoto the one who created this bitcoin  which is now valued at  $2300 and the world is getting crazy of getting and working with bitcoin . 


The link to the white paper of Satoshi Nakamoto about bitcoin

The abstract of the bitcoin : Peer to Peer Electronic Cash System

Abstract. 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. 

The video that describes what is discussed on the white paper of Satoshi Nakamoto 

Its decentralized no one owns it , no banks, no institution in between, accounts cannot be frozen, can be used with any country as long as their is internet.  The bitcoins are kept in a digital wallet and the transactions are recorded in a public ledger and is an open source anybody can review it. 

Before you start using Bitcoin, which is still experimental but has been operational without any interruptions for over eight years, there are a few things that you need to know in order to use it securely and avoid common pitfalls.
First, Bitcoins are impossible to counterfeit or inflate.
Second, you can use them to send or receive any amount of money, with anyone, anywhere in the world, at very low cost. Bitcoin payments are impossible to block, and bitcoin wallets can’t be frozen.
Third, with Bitcoin you can directly control the money yourself without going through a third party like a bank or Paypal.
Fourth, Bitcoin transactions cannot be reversed or refunded. You should only deal with businesses or people you trust.
FifthTo be valid, a Bitcoin transactions must be confirmed at least once but preferrably 6+ times before it has happened and becomes irreversible.
Sixth, Bitcoin is not anonymous but there is tumbling. All Bitcoin transactions are stored publicly and permanently on the network, which means anyone can see the balance and transactions of any Bitcoin address.
Seventh, you can get bitcoins by accepting them as a payment for goods and services or by buying them from a friend or someone near you. You can also buy them directly from an exchange with your bank account.
Eighth, there is a growing number of services and merchants accepting Bitcoin all over the world. You can use Bitcoin to pay them and rate your experience to help honest businesses to gain more visibility.
Ninth, the Bitcoin industry is always changing and there are many Bitcoin news services to stay up to date.
Bitcoin wallet is very important because this is where you put your money (bitcoins) and use this to make transactions, remember its a peer to peer transaction 

How To Get A Bitcoin Wallet
Setting up your first Bitcoin wallet is simple. There are several quality mobiledesktop, and hybrid wallets available. If you want to do thorough research then you can read our comprehensive guide on how to find the best Bitcoin wallet.
A great path would be:
(1) a mobile wallet like Airbitz (iPhone, Android), CoPay (iPhone, Android) or Mycelium (Android).
(2) acquire bitcoins from a friend, as payment for a good or service or buy bitcoins from one of the many exchanges.
(3) if you decide to store large amounts of bitcoins and want to know they are absolutely safe then use Armory.

If you have questions about bitcoins just comment or ask questions down below