Bitcoin - MacKittipat/note-developer GitHub Wiki

Bitcoin

  • Cryptocurrency, Digital money that use cryptography to secure and verify transaction.
  • Decentralize/peer-to-peer.
  • Build on Blockchain Technology.
  • Has value because it is useful and scarce.

Transaction

Consensus Algorithm

  • Process of ensuring everyone's copy of the transaction data are the same.
  • Proof of Work
    • Forces the miner to do some work, to use computational power to solve mathematical puzzle before submitting a block to the blockchain.
    • The goal is to inflict a modest cost on the person wanting to use the service once, but to make it very expensive for someone to use the service thousands or millions of times.
    • Hard to compute but easy for others to verify.

Wallet

  • Store public, private key and address.
  • private key =gen=> public key =gen=> address

Challenges

  • Double spend problem, Spending the same money twice
  • Byzantine generals problem
    • Solution : Consensus algorithm, Proof of Work.

Reference