Bitcoin is an online payment system that was created in 2008 and published in 2009. It is a very new way to complete online transactions. Bitcoin is peer-to-peer and users can do transactions directly without using an intermediary. Just like any other form of payment all transactions are recorded in some way or another. The transactions are verified by network nodes and then recorder in a public ledger called the block chain.
A block chain is performed without any trusted form of central authority. The maintenance comes from a network of nodes that communicate with each other using bitcoin software. In order to make sure that the block chain is verified independently each network node keeps a personal separate copy of it. Every six hours a block, new group of accepted transactions, is created and added to the block chain.The block chain is a good way to prevent double spending. Double spending is when a digital cash scheme fails and a single digital token is able to be used twice. Electronic files can be duplicated and need to be verified in some way when a digital token is spent. Since there is no actual bills a different form of recording needs to be used. Block chain is the only place that digital currency such as bitcoin can exist in the form of unspent outputs of transactions.
| This is an assignment from the Immersive Education course that I am taking at Boston College. The course is called Collaborative Computing. For details, visit the immersive BC portal athttp://ImmersiveEducation.org/@/bc |
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