Bitcoin Network System
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A Bitcoin Network System is a decentralized network that is a distributed peer-to-peer open source cryptocurrency system.
- Context:
- It can (typically) be based on a Proof-of-Work Blockchain System.
- It can (typically) manage Bitcoin Transactions (with bitcoins).
- It uses a Public Bitcoin Ledger (that records all bitcoin transactions).
- It uses a Bitcoin Blockchain.
- It is based on Bitcoin Software.
- It can be associated with a Bitcoin Invention.
- It can be measured in terms of Bitcoin Market Capitalization, Bitcoin USD Exchange Rate, ...
- It can (typically) require a Bitcoin Energy Input.
- …
- Example(s):
- Counter-Example(s):
- See: Payment System, Digital Currency, Open-Source Software, Pseudonym.
References
2015
- (Zohar, 2015) ⇒ Aviv Zohar. (2015). “Bitcoin: Under the Hood.” In: Communications of the ACM Journal, 58(9). doi:10.1145/2701411
- QUOTE: But what is Bitcoin's innovation? Is the buzz surrounding the new cryptocurrency justified, or will it turn out to be a modern tulip mania? To truly evaluate Bitcoin's novelty, its potential impact, and the challenges it faces, we must look past the hype and delve deeper into the details of the protocol.
Bitcoin, a peer-to-peer digital cryptocurrency launched in 2009
- QUOTE: But what is Bitcoin's innovation? Is the buzz surrounding the new cryptocurrency justified, or will it turn out to be a modern tulip mania? To truly evaluate Bitcoin's novelty, its potential impact, and the challenges it faces, we must look past the hype and delve deeper into the details of the protocol.
2014
- (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/bitcoin Retrieved:2014-2-1.
- Bitcoin is a peer-to-peer payment system and digital currency introduced as open source software in 2009 by pseudonymous developer Satoshi Nakamoto. It is a cryptocurrency, so-called because it uses cryptography to control the creation and transfer of money. Conventionally "Bitcoin" capitalized refers to the technology and network whereas lowercase "bitcoins" refers to the currency itself. Bitcoins are created by a process called mining, in which participants verify and record payments in exchange for transaction fees and newly minted bitcoins. Users send and receive bitcoins using wallet software on a personal computer, mobile device, or a web application. Bitcoins can be obtained by mining or in exchange for products, services, or other currencies.[1] Bitcoin has been a subject of scrutiny due to ties with illicit activity. In 2013, the FBI shut down the Silk Road online black market and seized 144,000 bitcoins worth US$28.5 million at the time. The US is considered Bitcoin-friendly compared to other governments, however.[2] In China, new rules restrict bitcoin exchange for local currency,[3] and the European Banking Authority has warned that Bitcoin lacks consumer protections. Bitcoins can be stolen, and chargebacks are impossible. [4] Commercial use of Bitcoin, illicit or otherwise, is currently small compared to its use by speculators, which has fueled price volatility.[5] Bitcoin as a form of payment for products and services has seen growth, however, and merchants have an incentive to accept the currency because transaction fees are lower than the 2–3% typically imposed by credit card processors. [6]
- ↑ Template:Cite news
- ↑ Peterson, Andrea (January 27, 2014). "This map shows which countries are friendly to Bitcoin". The Switch. The Washington Post. http://www.washingtonpost.com/blogs/the-switch/wp/2014/01/27/this-map-shows-which-countries-are-friendly-to-bitcoin/. Retrieved 28 January 2014.
- ↑ Kelion, Leo (18 December 2013). "Bitcoin sinks after China restricts yuan exchanges". bbc.com. BBC. http://www.bbc.co.uk/news/technology-25428866. Retrieved 20 December 2013.
- ↑ For theft, see *For lack of chargebacks, see
- ↑ Grocer, Stephen (Jul 2, 2013). "Beware the Risks of the Bitcoin: Winklevii Outline the Downside". Moneybeat. The Wall Street Journal. http://blogs.wsj.com/moneybeat/2013/07/02/beware-the-risks-of-the-bitcoin-winklevii-outline-the-downside/. Retrieved 21 October 2013.
- ↑ For growth in merchant numbers, see * For cheap payment processing costs, see
2014b
- (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/Bitcoin#Overview Retrieved:2014-6-1.
- The most important part of the bitcoin system is a public ledger that records financial transactions in bitcoins. Recording transactions is accomplished without the intermediation of any single, central authority. Instead, multiple intermediaries exist in the form of servers running bitcoin software. By connecting over the Internet, these servers form a network that anyone can join. Transactions of the form payer X wants to send Y bitcoins to payee Z are broadcast to this network using readily available software applications. Bitcoin servers can validate these transactions, add them to their copy of the ledger, and then broadcast these ledger additions to other servers.[1]
- ↑ Ramzan, Zulfikar (1 May 2013). "Bitcoin: Transaction block chains". khanacademy.org. Khan Academy. https://www.khanacademy.org/economics-finance-domain/core-finance/money-and-banking/bitcoin/v/bitcoin-transaction-block-chains. Retrieved 15 April 2014.
2014c
- https://en.bitcoin.it/wiki/FAQ#What_is_Bitcoin.3F
- Bitcoin is a distributed peer-to-peer digital currency that can be transferred instantly and securely between any two people in the world. It's like electronic cash that you can use to pay friends or merchants.
2008
- (Nakamoto, 2008) ⇒ Satoshi Nakamoto. (2008). “Bitcoin: A Peer-to-peer Electronic Cash System.” In: Consulted Journal, 1.
- QUOTE: A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.