What is the virtual currency "Bitcoin" and what kind of mechanism is it understood by one shot? Summary

P2PIt is easy to send and receive by using the mechanism of the settlement fee is also very cheap, so as a net payment tool to strengthen the presence of the virtual currency "Bitcoin (bit coin)About what it is, what kind of structure it is, just a cinematic movie that shows crispness is released in various ways.

◆ bit coin mine
Common digital currencies can be obtained by exchanging existing currencies and digital currencies at exchanges. In contrast to this, exchange routes are not the only route to get bit coins.It is also possible to "mining" with your own handsis.

What is Bitcoin Mining? On Vimeo
http://vimeo.com/69320194


Bit coins are operated on the P2P network and people holding bit coins function as "small pieces of bank" and are therefore also called "decentralized currencies".


So how will bit coins be produced?


Banknotes determine when and how much time the government will print.


In contrast, bit coins do not have a central government.


In bit coins, a special bit coin "mining" software called "miner" creates bit coins by solving mathematical problems related to distribution volume and issue timing.


For bit coins, the amount mined by miner's calculation is automatically adjusted.


For example, if few people are mined, you do not need such a long time to dig a bit coin.


However, when many people want to get bit coins, it is difficult to mining and it takes time.


Miner initially used CPU to perform arithmetic processing, but graphic boards are now being used for faster processing speed. As a result, we face the problem of increasing the amount of heat generated.


So, bitchoin mining dedicated chip "asic" was developed and sold, and now we have succeeded in saving power while increasing computation speed.


Mining becomes more difficult as more people join the network as demand for bit coins increases. The "pool mining" system was created there.


In the pool, miners can form teams to collaborate with mining bit coins and receive bit coin distribution according to their contribution.


The bit coin is easy to understand its character if it is compared to "gold"It can be said. Kim is not issued by the central government. Of course, the central government does not give a guarantee to its value. The value of gold is accepted because everyone in the world thinks that "money is worthful" and it is completely decided by market judgment. And the fact that gold reserves have limits also supports their value.

Like gold,Bit coins have issuance authority and there is no central government that secures its value. And, due to the existence of bit coin mining management software called miner in the bit coin,Distribution volume is automatically adjusted and limit on reservesHas been set. Then,The value is determined by the relationship between supply and demandThe same as the gold market.

This is a chart of trading quotation by US dollar conversion per bit coin.


◆ How to use bit coins
How to use bit coins like this "web gold" can be understood with a single shot if you watch this movie.

What is Bitcoin? - YouTube


Bit coins are distributed digital currencies.


Bit coins can be sent directly from individuals to individuals via P2P, and there is no need to go through banks or currency exchanges.


In this way,Fees are kept lowCan be used in any country, accounts are not frozen, no requirement, no censorship.


Bit coin,Anyone with a PC can create it using the free application "miner"is.


The mining amount is automatically adjusted by the bit coin network, so the total amount of bit coins is set as shown below and the upper limit is determined.


The bit coin is stored in the digital wallet, it looks like an online bank.


Bit coins can be sent easily ...


The information encrypted in the state of being attached with the electronic signature is transmitted to the bit coin network ... ...


After several minutes you will be able to use the bit coin once the transmission is completed and the recipient is authenticated. Transactions are recorded permanently on the network as anonymous information.


Bit coin software is a complete open sourceSo anyone can check the code. Fairness and security are guaranteed.


Products that can be bought with bit coins include video games, gift items, books, servers ... ...


Something like alpaca socks ... ....


A number of exchanges are also born already, and various currencies such as dollars and euros have already been converted to bit coins.


Bit coin is very effective for small business and freelance, because it costs nothing to receive and it is free from chargeback like credit card.


◆ How was a bit coin born?
The bit coin network is operated by the system power of the person who uses the special software miner. In other words, for people who are mining (mining) bit coins, it is "a bit coin is given as a return for maintaining the network." However, mining requires hardware with a very powerful spec PC and dedicated chip, and it is said that the electricity cost required for mining can not be covered by the market value of bit coin which can be given.

In addition to the mechanism that maintains and manages the system by giving incentives to supporters supporting the network, bit coins use a powerful encryption algorithmAnonymity, It can be obtained by making it completely detectable that it is not double usedFairness / safety, By limiting the amount of distribution to the mechanism and limiting the amount of reservesMaintain market valueDistribution is negated by denying the centralized system that has authority to issue currencyMinimize cost (issue fee)It is created under an ideal design concept as a virtual currency.

This ideal virtual currency is "Tetsushi Nakamoto"Bitcoin: P2P Electronic Money System" was launched from a paper named by the person who is named.

【PDF】 Satoshi Whitepaper - Satoshi Whitepaper.pdf
http://www.bitcoin.co.jp/docs/SatoshiWhitepaper.pdf


There is no such thing as being a hacker (and its group), a government of a certain country, etc., as to whom the person who is Terumu Nakamoto is not disclosed. American computeristTed NelsonMr. (The world's first hypertext underlying the notion of link in the current world "Project · Xanadu"The person who began to do) is the true character of Tetsushi Nakamoto is Professor of Kyoto UniversityMochizuki ShinichiI claim to be a doctor, but the truth is in the dark.

I Think I Know Who Satoshi Is - YouTube


◆ Bit coin market to expand
The bit coin produced in 2009 by the mysterious person "Tetsushi Nakamoto" is a revolutionary advanced nature that can shake the existing monetary system, because of the revolutionary advancement that Nakamoto disappeared abruptly from the net. I will continue. It is said that bit coin was used for market trading in 2010 when Laszlo Hanyecz first purchased two pizzas at 10,000 BTC (10,000 bit coins). At the time of article writing, the exchange value of 1 BTC is 137 dollars (about 13 3300 yen), so in terms of current monetary value this pizza will be 66.5 million yen per sheet.

ByRobert

Although it is a bit coin that increases its market value rapidly as the number of users increases, the range of transactions has expanded steadily.

Internet ArchiveStart accepting donations with bit coins.


WordPressAdopt bit coin for settlement currency.


Finally, a company that pays (part of) salary with bit coin appeared.


◆ The way bit coins go
However, there are also "shadows" stuck together because bit coins are innovative.

Bitcoin Explained
http://vimeo.com/63502573


Electronic currency suitable for world borderless world economy should be a currency applicable to "digital kingdom".


Bitcoin (bit coin) is suitable for it. Bit coin has a mechanism to decentralize electronic cash system using P2P network.


The traditional currency is issued by the central government and adjusts the distribution volume.


Generally banknotes are printed and distributed. But the bit coin is different.


Bit coins are mined from "Bitcoin mining" called "Bitcoin mining". Despite being "mined"The bit coin exists in the virtual space on the netis.


Dedicated application "minerBy running a complicated mathematical program with ", you can discover 50 new bit coins and become owners.


The bit coin network automatically adjusts the amount of mining (current mining), currently limiting the number of bits coins to be mined to 50 mins every 10 minutes, so the volume of distribution is limited.


The total quantity of bit coins that can be distributed is only 21 million pieces, and its monetary value is currently about 70 US dollars (about 6800 yen) (at the time of movie production). However, last year's transaction volume reached 16.7 million dollars in total (about 1,627 million yen).


Bit coins can be exchanged for local currency,Mt.GoXIs the largest exchange office (exchanges).


by the wayBit coins are often used at dark trading sites, Heroin, marijuana often also be exploited for settlement of drugs.


The dark site that trades with identity hidden using Tor software is called "Silk roadIt is called a "solid digital market" (called October 2013Arrest operatorIt was obvious that there was sales of 116 billion yen in Japanese yen).


While the influence of bit coins is increasing, Wikileaks and WordPress allow bit coins to be used for settlement as well as cash.


In addition, the Canadian Government has developed a digital currency "MintChip"Was introduced.


Bit coins are trying to change the concept of 'currency'.


Since bit coins are virtual currencies existing in the net space unlike real money, the risk of being stolen or lost due to hacking or web troubles is pointed out. Also, due to its high anonymity, it is often said that it is used for trading illegal drugs and money laundering.

In addition, as speculative money has flowed into the bit coin market, it is pointed out that the exchange price has reached the bubble level in recent years, and actually the transaction price reaches half price in April 2013 in just one day There is also an "incident" that plummets.

Will bit coins that can overwhelm the traditional currency concept from the ground, will it become a currency revolution of the 21st century or a race of the times? It is noteworthy in the future. At the time of writing the article,The transaction price is 137 dollars per BTC (about 13 3300 yen), the worldwide circulation amount is 11,791,900 sheetsHas become.

◆Continuation
Summary of things I would like to know to perfectly understand the virtual currency "Bitcoin" - GIGAZINE