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Bitcoin

coloradokim edited this page Oct 23, 2017 · 3 revisions

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
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