What is Bitcoin, in a nutshell, is a virtual currency. It is a currency of virtual.
First, as you can see from both currency and coin, bitcoin is money.
It is still money, like yen or dollars.
Because it is money, there are currency units such as yen and dollar.
The unit of bitcoin is described as BTC. You can count as 1 BTC (1 bitcoin), like 1 yen or 1 dollar.
However, as can be seen from the virtual, unlike the yen and the dollar, there is no visible figure for the hand.
There is not a coin marked B. Bitcoin is a virtual currency.
Cryptocurrencies that can be used only in specific games and websites are created on a company basis, and by enclosing users, the operating entity of the virtual currency (= game or website operating company) can make a profit.
Goal of the bitcoin
Bitcoin, on the other hand, is a virtual currency created to facilitate economic activities, like the yen and dollar that are operated on a national level.
Bitcoin is designed to be usable in everyday life around the world. Since it is a virtual currency, there are no banknotes or coins, but instead, a PC or smartphone is used as a wallet to make it possible to buy and sell goods.
Although it is still developing, it is a virtual currency that is more convenient, more stable than the yen and the dollar, and aimed at the next generation currency that can be used all over the worldas Crypto comeback pro.
How bitcoin works
Bitcoin is a currency that can exchange coins as if they were going through a bank, without having a center.
People who contribute to the operation of blockchain receive a reward; this is mining.
What is communal key cryptography?
Public key cryptography uses two keys, a public key and a private key, as the key for encryption/decryption.
Generally, the receiving side has a public key and a private key. The public key is an open key that anyone can obtain, and the secret key is a key held only by the receiving side.
- The sender obtains the public key published by the receiver. Then, the transmitted data is encrypted with the obtained public key and transmitted.
- The receiving side decrypts the received data with the (private key held only by the receiving side) to obtain the data.
What is a blockchain?
The Bitcoin blockchain is a history (database) that records which addresses sent Bitcoin currency from which address.
And that data is not stored in one place, but transaction records are distributed and stored on computers participating in the Bitcoin network.
A blockchain is one in which transaction records (transactions) are collected into one block, and the blocks are connected and stored like a chain.
By connecting them in a chain, it becomes virtually impossible to change or alter the data later.
What is mining and how it help to make money?
Bitcoin adds all transaction records to the transaction book at regular intervals. In the process of appending, it is necessary to record while keeping the data of the transaction book distributed and stored on the network consistent with the data of all transactions that occurred during the period of the appending.
The task of achieving this consistency can be achieved by computer calculations but requires a huge amount of calculation. Both the data in one large ledger book, which is distributed and stored, and the data of the transaction to be added must be validated correctly and then added.
Therefore, Bitcoin borrows volunteer computer resources for this additional work. By borrowing the computing power of the surplus computer, it performs a huge amount of calculation and adds to one large transaction ledger shared by everyone.
Bitcoin is paid in return for those who helped with this additional work. Those who performed a huge amount of calculation processing for the additional work and, as a result, succeeded in the additional work. In other words, Bitcoin is paid as a reward for working hard to make the entire bitcoin sound healthy by helping with the appending work.