The underlying technology of bitcoin

The underlying technology of bitcoin

The underlying technology of bitcoin

In the past year, although the bitcoin itself has been questioned, but people started from bitcoin payments gradually shifted to the – block chain technology bitcoin underlying agreement, more and more investors and ordinary people to accept the concept of block chain. We can understand the block chain technology by understanding the generation and trading of bitcoins and a series of process.

(a) bitcoin transactions

The use of bitcoin P2P (Internet Financial peer-to-peer lending platform) distributed database of many nodes in the network structure, to identify and record all the transactions. In the process of information transmission, the sender information will be encrypted by a key, the receiver in the received information, and then through another key pair to decrypt the information, which can ensure the privacy and security of the information transfer process. Bitcoin transactions are not simply pay the money itself. In Figure 1.1 the transaction as an example, if B wants to pay 100 coins to C, then not only need to specify the amount in the B transaction, but also need to specify the source of 100 bitcoin. Because each transaction is recorded one of the funds have a current owner, and after an owner, you can achieve all of the funds back to a single transaction basis. This is one of the typical characteristics of bitcoin. Finally, when every transaction is completed, the system will be broadcast to the entire network, the implementation of the deal told all users.

 

Figure 1.1 bitcoin transactions

(two) block + Chain

Because each transaction is relatively dispersed, in order to better trade statistics, the bitcoin system has created the concept of a block. Each block contains the following three factors: one is the block ID (hash), two is the number of orders, three is a block of ID. The bitcoin system about every 10 minutes to create a block, which contains all transactions occurring in this period of time within the scope of the whole network. Each block also contains a block before ID, this design makes each block can be found in the front of a node, so you can always back to the starting node, thus forming a complete trade chain. Therefore, from bitcoin’s date of birth, the whole network will form a unique main block chain, which records from all transaction records since the birth of bitcoin, and every 10 minutes at a new node speed unlimited expansion. The main chain in each block to add a node, will be broadcast to the entire network, so that each bitcoin transactions involved in computer have a copy. In the real world, each non cash transactions by the bank system to record, once the bank computer network breakdown, all data will be lost. But in the Internet world, all bitcoin transaction records are stored in the computer in the world countless, as long as there is a global bitcoin program with computer can still work, the main chain block can be completely read. The transaction information is stored so highly redundant, the possibility of making bitcoin main block chain missing completely becomes very little.

 

The local structure of Figure 1.2 block chain

Source: Bitcoin:A Peet-to-Peer Electronic CashSystem.

Everyone was verified in the validity of the transaction after the transaction data can be generated according to the new block. In order to avoid false trading or repeat transactions, so that this new block is to build trust, proof of work mechanism. If you want to modify the transaction information for a block, all the work must be completed in the block and subsequent connection block, this mechanism greatly increased the difficulty of information tampering. At the same time, proof of work but also solve the network consensus problem, the whole network recognized the longest chain, because the longest chain contains the largest workload.

(three) and bitcoin blockchain

To sum up, the chain is a block data block using cryptographic methods associated with the. In the application of bitcoin, the entire block chain bitcoin is the public ledger, every node in the network has bitcoin transaction information backup. When initiating a bitcoin transaction, the information is broadcast to the network, and obtain legal right by accounting competition miners will record transaction information into a new block connected to the block chain, once the information is recorded, it can not be tampering. Bitcoin is a “killer app” blockchain, block chain is the underlying technology of bitcoin, and not just in bitcoin. Therefore, although the bitcoin blockchain and is often mentioned at the same time, but the two are not equal.

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