Introduction to Bitcoin

from Bitcoin for the Befuddled

Concepts to research

• Byzantine Generals’ Problem

General Information

• Bitcoin is inherently international
• Bitcoin is the name of the system, bitcoins are the currency
• The system is capped at 21 million bitcoins

Bitcoin address

• Your 'identity' on the Bitcoin ledger
• A long string of letters and numbers that usually begins with 1

Private Key

• To move bitcoins from one address to another, you need a private key
• A private key is a long string of letters and numbers that usually begins with 5
• A private key is like a pin number: you have to enter your bitcoin address and your private key to complete a transaction
• A transaction cannot be completed without a digital signature using the private key

Bitcoin Wallet

• A collection of private keys and addresses that belong to one person
• Most people have multiple addresses so that it is harder to figure out the person behind the bitcoin address