How does the Payment under Bitcoin System Work?
Category : FINANCE Author : Rajaraman K Date : Mon Feb 19 2018 Views : 215
In the bitcoin system of payment, in order to determine whether a payment was made from one Bitcoin-purse to another or not, the developers offered to specify in open access how many bitcoins left from the address of a particular purse, and how much it has received. That is, when you connect to the entire cryptographic system, you are given the opportunity to see all payments by bitcoins in general.
Purses are completely anonymous. So if your friend did not tell you that he is the owner of a certain purse, you will never know about it for sure. Accordingly, if you want to transfer bitcoin from your wallet to another user's wallet, then after the transaction in the general list of transactions, it will be indicated that one of your Bitcoin left your purse, and on the other, it entered the purse.
In this case, the total number of bitcoins is not specified. But it is quite possible to calculate them. Since the calculations have to be done all the time, the database of transaction information needs transformations on a regular basis, and because of this considerable computer power is required. And that computer power can be obtained only by combining thousands of computers into a single hyper-power network.
If an ordinary computer user agrees to give some of the power of his video card for the common good, he will receive the reward for this all in the same bitcoins. Such work is called ‘mining’. Let us talk about it later. So far, we discussed about the essence of bitcoin and the history of its birth. Now, it would also be better to know about the advantages and disadvantages.
By the way, we have to note that since the rate of crypto currency is very high at this moment in time, calculations are made in fractions of bitcoins. Most often in transactions, satoshi’s are involved, one unit of which is 0.00000001 Bitcoin. According to the algorithm, which ensures the possibility of the crypto currency, you can get no more than 21,000,000 bitcoins. After this their production will cease.
In the bitcoin system of payment, in order to determine whether a payment was made from one Bitcoin-purse to another or not, the developers offered to specify in open access how many bitcoins left from the address of a particular purse, and how much it has received. That is, when you connect to the entire cryptographic system, you are given the opportunity to see all payments by bitcoins in general.
Purses are completely anonymous. So if your friend did not tell you that he is the owner of a certain purse, you will never know about it for sure. Accordingly, if you want to transfer bitcoin from your wallet to another user's wallet, then after the transaction in the general list of transactions, it will be indicated that one of your Bitcoin left your purse, and on the other, it entered the purse.
In this case, the total number of bitcoins is not specified. But it is quite possible to calculate them. Since the calculations have to be done all the time, the database of transaction information needs transformations on a regular basis, and because of this considerable computer power is required. And that computer power can be obtained only by combining thousands of computers into a single hyper-power network.
If an ordinary computer user agrees to give some of the power of his video card for the common good, he will receive the reward for this all in the same bitcoins. Such work is called ‘mining’. Let us talk about it later. So far, we discussed about the essence of bitcoin and the history of its birth. Now, it would also be better to know about the advantages and disadvantages.
By the way, we have to note that since the rate of crypto currency is very high at this moment in time, calculations are made in fractions of bitcoins. Most often in transactions, satoshi’s are involved, one unit of which is 0.00000001 Bitcoin. According to the algorithm, which ensures the possibility of the crypto currency, you can get no more than 21,000,000 bitcoins. After this their production will cease.
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