What is bitcoin
Basic Knowledge of bitcoin and blockchain
Explained in easy words and less then one page
Intro
The idea of a Decentralized Coin began in the '80 It was studied for 30 years, but there was a problem, the double spending problem. Normally, if you have 100 usd, you buy beers, you spend 100 usd, you go in the next shop, you can't buy more beer, because you spent your dollars. In a centralized coin, the center, could be a bank or an institute, as visa, or your bank, guarantee that you have or not the moneys. But going decentrilize, nobody can guarantee that you have or not the moneys. If you make 100 digital transactions at the same time, you can steal the system, and spend your money 100 of times.
Blockchain
But, in 2009, somebody had the Idea. The idea was the blockchain. The blockchain, it's a database, it is like an excel. Every block is a row. In the row, there are all the authorized transactions. The transactions are taken from a queue, and if they are valid, they are written in the new row. The database is written on every PC that has the software installed (bitcoin-core, today at version 0.20.1).
Proof of Work
But, which software can write the new row, between the millions of softwares installed in every computer in the world? A big number is defined. The computer that guess this number, is authorized to write the new row. The software, the computer that find the number get a prize. A BTC, or a fraction of it, a fixed amount. This amount is divided by 2 every 4 years (every 210000 blocks). That's the halving.. and the btc given as prize is the mined btc
Mining
Writing new row, and fighting to find the number, is exatcly was mining is. Faster is the computer, more chances there are to get this number. Total computer power fighting to find the number, is the hash power, measured in flop (operation por seconds) - megaflop (10^3), gigaflop (10^6), teraflop (10^9), petaflop (10^12), etc.
Every other software can easily check if the number is right. This hash is hard to find, but easy to check, like every hash. The number to be find is a hash quiz made by all different rows before written.
This number, this hash, is written in the new row, with all the authorized transactions. Who guess the hash, get the mined btc, and all the fees in the authorized transaction.
Block Time
The number to be found, is calculated to be difficult enough so the total hash power available would last more less 15 minutes to find it. So the block time in btc is 15 minutes. That means that every 15 minutes a new row is written in the blockchain.
21 millions
The total number of bitcoin that can be mined, is 21 million. In 2009 the prize for the miners were 50 bitcoin, today after some halves, prize is 6.25btc. Prize will reduce, till 21 millions of btc will be available, in 22th century. After that, the miners will receive just the fees, and no more bitcoin, when they'll discover the number to write the row.
Safety
So, all the rows are easy to verify, because you can check if the numbers are correlated to the previous information. But impossible to modify, because that would mean recalculate all the numbers, to write a new valid blockchain. But this mean you would need all the hash power in the world for all the time that it worked to find those numbers.. pratically impossible. So when you write a transaction in the blockchain, is figuratevily like to write it on a stone. Impossible to delete or modify. And this information is written on millions of different computer in the world, everywhere.
Anonim
When you write this info, you write the publick key of your wallet. It's a 32 digit hex number, nobody knows whos is the owner of this wallet. Just the owner of the private key associated to the public key can write new informations about new transactions on that public key.
That guarantee safatey and some capability to hide your identity.
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