What is Bitcoin? Bitcoin is a cryptocurrency and a payment system, first proposed by an anonymous person or group of people under the name Satoshi Nakamoto in 2008. Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment. Bitcoin is different from other traditional currencies because it is decentralized, meaning it is not subject to government or financial institution control. The network that supports Bitcoin is a peer-to-peer network, similar to the network that supports email. What is mining? Mining is how new Bitcoins are created. Miners are rewarded with Bitcoins for verifying and committing transactions to the Bitcoin public ledger, called the blockchain. The mining process involves compiling recent transactions into blocks and trying to solve a computationally difficult puzzle. The first miner to solve the puzzle gets to add the next block to the blockchain and receives a reward in the form of new Bitcoins. What is a blockchain? A blockchain is a digital ledger of all Bitcoin transactions. It is constantly growing as "completed" blocks are added to it with a new set of recordings. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. Bitcoin nodes use the block chain to differentiate legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere. What are Bitcoin wallets? A Bitcoin wallet is a software program where Bitcoins are stored. Bitcoin wallets come in a variety of forms, including desktop, mobile, and web-based wallets. What is a Bitcoin address? A Bitcoin address is a string of alphanumeric characters that represents a destination on the Bitcoin network. Bitcoin addresses are used to send and receive Bitcoins. What is a Bitcoin transaction? A Bitcoin transaction is a record of a Bitcoin payment made between two Bitcoin addresses. Bitcoin transactions are verified by Bitcoin miners through a cryptographic process and then recorded in a public dispersed ledger called a blockchain. What is a Bitcoin block? A Bitcoin block is a record of recent Bitcoin transactions that is verified by Bitcoin miners. Bitcoin blocks are verified by Bitcoin miners through a cryptographic process and then recorded in a public dispersed ledger called a blockchain. What is a Bitcoin mining pool? A Bitcoin mining pool is a group of Bitcoin miners that work together to verify and confirm Bitcoin transactions. Bitcoin mining pools are useful because they help to smooth out the volatility of rewards for individual miners. What is a Bitcoin mining pool? A Bitcoin mining pool is a group of Bitcoin miners that work together to verify and confirm Bitcoin transactions. Bitcoin mining pools are useful because they help to smooth out the volatility of rewards for individual miners. What is a Bitcoin mining pool? A Bitcoin mining pool is a group of Bitcoin miners that work together to verify and confirm Bitcoin transactions. Bitcoin mining pools are useful because they help to smooth out the volatility of rewards for individual miners.
No comments:
Post a Comment