Bitcoin Whitepaper
Posted: Mon Oct 25, 2021 2:53 am
The origin document, the purpose of Bitcoin-
Mariner Talk Chat Forum
Seattle Mariners & Seahawks Chat Forum
https://marinertalk.com/
Bitcoin Whitepaper
Page 1 of 1
Re: Bitcoin Whitepaper
Posted: Mon Oct 25, 2021 2:54 am
continued
Re: Bitcoin Whitepaper
Posted: Mon Oct 25, 2021 2:55 am
continued
Re: Bitcoin Whitepaper
Posted: Mon Oct 25, 2021 3:16 am
Basically, instead of storing the record of transactions on one or two centralized servers, the Bitcoin transactions are recorded on the network and then stored on a million users hard drives.
If you had the know-how to even try, that means that you can't hack in to some database and change the record unless you control over half of the computing network, which with Bitcoin will obviously never happen because of how it is set up to be stored without a central server.
Once a block of information is recorded on the Bitcoin network, it is stored on the million servers. Try and change it on one server and it would be rejected as false by the rest of the network, and the concensus among the majority of the rest of the network would be accepted as true and recorded on the chain, which is simply a ledger like an accountant would use to see who owns what. There are 21 million Bitcoin in existence, the blockchain is just a digital register keeping track of how much of the pie each wallet owns.
Two parties initiate a transaction, it is completed by mining machines which earn the fee which would normally go to a credit card processor like Visa, for example, and it is reported to the network and stored on the blockchain (moving funds from one parties digital wallet to the other parties digital wallet) never to be altered.
User A has 1 bitcoin they want to send to User B.
The mining machine would complete the transfer by making a transaction on the ledger, resulting in User A's digital wallet being debited 1 bitcoin and User B's digital wallet being credited with 1 bitcoin, then the transaction is stored on the decentralized network. That's it.
If you had the know-how to even try, that means that you can't hack in to some database and change the record unless you control over half of the computing network, which with Bitcoin will obviously never happen because of how it is set up to be stored without a central server.
Once a block of information is recorded on the Bitcoin network, it is stored on the million servers. Try and change it on one server and it would be rejected as false by the rest of the network, and the concensus among the majority of the rest of the network would be accepted as true and recorded on the chain, which is simply a ledger like an accountant would use to see who owns what. There are 21 million Bitcoin in existence, the blockchain is just a digital register keeping track of how much of the pie each wallet owns.
Two parties initiate a transaction, it is completed by mining machines which earn the fee which would normally go to a credit card processor like Visa, for example, and it is reported to the network and stored on the blockchain (moving funds from one parties digital wallet to the other parties digital wallet) never to be altered.
User A has 1 bitcoin they want to send to User B.
The mining machine would complete the transfer by making a transaction on the ledger, resulting in User A's digital wallet being debited 1 bitcoin and User B's digital wallet being credited with 1 bitcoin, then the transaction is stored on the decentralized network. That's it.