Bitcoin Essay

1937 Words 8 Pages
1.0: Bitcoin and its history
1.1:What is Bitcoin The concept of Bitcoin was originally rise up by Satoshi Nakamoto 2009, the system designed with it released open source software and the peer-to-peer network system (Betancourt & Michael, 2013). So, Bitcoin is a peer-to-peer form digital currency. Unlike most of the currency, the transition happens between one point to another which means the payment system is out of inverary since Bitcoin does not line on specific currency issuing agency. Bitcoin based on its own arithmetic, and produce through massive amount of calculation ( Cheung, Adrian, Roca & Eduardo, 2015). The Bitcoin economy use the distributed data base which consist of multitudinous node to ensure the record of all trades
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2.0 The produce of Bitcoin
2.1 Blockchain Bitcoin use a of public ledger (distributed database) to record the transition to get rid of the restrict of the third party, Satoshi Nakamoto call it as blockchain. The user contribute the CPU ability to calculate, run a special software to be a miner to maintain a blockchain by a network of communicating nodes, during this process, the mining action can produce new Bitcoin , so the trade can be extend on the internet (Tapscott, 2016)

2.2 Mining Users contribute their cpu calculate ability to run the Bitcoin software , running this software that the computer solve a irreversible difficult target problem , those problems contains several records ( katullah, Javed, Hanke & Timo, 2015). The mining is a service to keep record.the first miner that solve the problem can get 50 Bitcoins as reward, then the related block add to the blockchain. As the number of miners increase, the mining process becoming more time consuming, it makes every block’s produce rate maintains into 10 minutes per
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So it is unable to control the issue amount. In the other hand, the system can not be closed from outside the system. The Bitcoin and its peer-to-peer network will always stay on no matter what the Bitcoin’ s economic value change (Cusumano & Michael, 2014). Bitcoin and its network system make sure its flow and produce will not affect it existence by the outside reason, this comparably stronger even if it is been shut down by government or economically shift of its dollar value.
4.1.2: Privacy Bitcoin is a kind of anonymous currency, the fund does not stright relate to the physical world. The address and private key come as a couple (Harper & Jim, 2014) and the address can be produced automatically without the interaction between peer-to-peer. Those features built an anonymous, tax free and non supervisory environment, this can also shorter the process of transaction.

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