Bitcoin-design - Auto BTC Trading Limited

Latest Members - LPLF11     2017-01-19 14:33:57         ALI259     2017-01-19 14:03:27         STANLEY     2017-01-19 05:57:01         GREGGHAITI     2017-01-19 01:32:23         TRANQUILINO100     2017-01-19 01:20:27         MBEMBEM     2017-01-18 21:10:02         GILBERT     2017-01-18 19:19:18         BENEFIT     2017-01-18 16:25:24         TILOUSE     2017-01-18 06:34:30         FEEZY     2017-01-18 05:27:11         JOCEFILS     2017-01-17 21:06:32         GABECHORUSFRUIT     2017-01-17 18:01:45         CEYARR1966     2017-01-17 15:32:34         RELAM     2017-01-17 13:35:47         BUZZNET     2017-01-17 00:30:45         SAM77     2017-01-16 17:25:06         MARCOLO     2017-01-16 17:03:09         LIFNEE     2017-01-16 16:50:22         MGB34     2017-01-16 12:43:38         BIENIO1980     2017-01-16 01:25:41         FOULCOM     2017-01-16 00:13:33         DJEBEN     2017-01-15 16:54:20         GINAL     2017-01-15 16:46:50         JUJEF     2017-01-15 16:40:08         CLARNOLY     2017-01-15 16:34:55         ALBERT     2017-01-15 15:42:51         WALISSON775     2017-01-15 10:52:24         CONFIGAY     2017-01-15 09:23:57         DREMAPOWER     2017-01-15 08:49:21         KHAN     2017-01-15 08:17:09         MAFIR     2017-01-15 04:50:25         SHEDEE     2017-01-15 04:31:14         WIDLIR     2017-01-15 03:57:26         GUYALEE     2017-01-15 03:52:52         DISMASS     2017-01-15 03:31:57         THERLIA     2017-01-15 02:03:37         GARDIGEE     2017-01-15 01:56:23         REGI200     2017-01-15 00:25:59         CALUNE     2017-01-14 20:19:39         DOMINO     2017-01-14 19:22:20         ADMINVN     2017-01-14 15:21:50         COKPENG     2017-01-14 10:49:17         ANEWTRADE     2017-01-14 09:02:23         696969     2017-01-14 04:27:12         DOMINGOSMENDES     2017-01-14 03:09:26         FIRQAHISLAMIAH     2017-01-14 02:31:54         BER1     2017-01-14 00:52:28         TRUONGDANG     2017-01-13 22:48:42         OMSORION     2017-01-13 22:26:15         POWERSUCCESS     2017-01-13 21:46:54         

 


Bitcoins are created as a reward for payment processing work in which users offer their computing power to verify and record payments into a public ledger. This activity is called mining and miners are rewarded with transaction fees and newly created bitcoins. Besides being obtained by mining, bitcoins can be exchanged for other currencies, products, and services. Users can send and receive bitcoins for an optional transaction fee. Bitcoin as a form of payment for products and services has grown, and merchants have an incentive to accept it because fees are lower than the 2–3% typically imposed by credit card processors. Unlike credit cards, any fees are paid by the purchaser, not the vendor. The European Banking Authority and other sources have warned that bitcoin users are not protected by refund rights or chargebacks. Despite a large increase in the number of merchants accepting bitcoin, the cryptocurrency does not have much momentum in retail transactions. The use of bitcoin by criminals has attracted the attention of financial regulators, legislative bodies, law enforcement, and media. Criminal activities are primarily centered around black markets and theft, though officials in countries such as the United States also recognize that bitcoin can provide legitimate financial services. Bitcoin has drawn the support of a few politicians, notably U.S. Senator Rand Paul, who accepts donations in bitcoin.

The block chain is a public ledger that records bitcoin transactions. A novel solution accomplishes this without any trusted central authority: maintenance of the block chain is performed by a network of communicating nodes running bitcoin software. Transactions of the form payer X sends Y bitcoins to payee Z are broadcast to this network using readily available software applications. Network nodes can validate transactions, add them to their copy of the ledger, and then broadcast these ledger additions to other nodes. The block chain is a distributed database; to achieve independent verification of the chain of ownership of any and every bitcoin (amount), each network node stores its own copy of the block chain. Approximately six times per hour, a new group of accepted transactions, a block, is created, added to the block chain, and quickly published to all nodes. This allows bitcoin software to determine when a particular bitcoin amount has been spent, which is necessary in order to prevent double-spending in an environment without central oversight. Whereas a conventional ledger records the transfers of actual bills or promissory notes that exist apart from it, the block chain is the only place that bitcoins can be said to exist in the form of unspent outputs of transactions.

A transaction must have one or more inputs. For the transaction to be valid, every input must be an unspent output of a previous transaction. Every input must be digitally signed. The use of multiple inputs corresponds to the use of multiple coins in a cash transaction. A transaction can also have multiple outputs, allowing one to make multiple payments in one go. A transaction output can be specified as an arbitrary multiple of satoshi. As in a cash transaction, the sum of inputs (coins used to pay) can exceed the intended sum of payments. In such case, an additional output is used, returning the change back to the payer. Any input satoshis not accounted for in the transaction outputs become the transaction fee.

To send money to a bitcoin address, users can click links on webpages; this is accomplished with a provisional bitcoin URI scheme using a template registered with IANA. Bitcoin clients like Electrum and Armory support bitcoin URIs. Mobile clients recognize bitcoin URIs in QR codes, so that the user does not have to type the bitcoin address and amount in manually. The QR code is generated from the user input based on the payment amount. The QR code is displayed on the mobile device screen and can be scanned by a second mobile device.

The unit of account of the bitcoin system is bitcoin. As of 2014, symbols used to represent bitcoin are BTC, XBT Small amounts of bitcoin used as alternative units are millibitcoin (mBTC), microbitcoin (µBTC), and satoshi. Named in homage to bitcoin's creator, a satoshi is the smallest amount within bitcoin representing 0.00000001 bitcoin, one hundred millionth of a bitcoin. A millibitcoin equals to 0.001 bitcoin, which is one thousandth of bitcoin. One microbitcoin equals to 0.000001 bitcoin, which is one millionth of a bitcoin. A microbitcoin is sometimes referred to as a bit.

On 7 October 2014, the Bitcoin Foundation disseminated a plan to apply for an ISO 4217 currency code for bitcoin, and mentioned BTC and XBT as the leading candidates.

A transaction must have one or more inputs. For the transaction to be valid, every input must be an unspent output of a previous transaction. Every input must be digitally signed. The use of multiple inputs corresponds to the use of multiple coins in a cash transaction. A transaction can also have multiple outputs, allowing one to make multiple payments in one go. A transaction output can be specified as an arbitrary multiple of satoshi. As in a cash transaction, the sum of inputs (coins used to pay) can exceed the intended sum of payments. In such case, an additional output is used, returning the change back to the payer. Any input satoshis not accounted for in the transaction outputs become the transaction fee.

To send money to a bitcoin address, users can click links on webpages; this is accomplished with a provisional bitcoin URI scheme using a template registered with IANA. Bitcoin clients like Electrum and Armory support bitcoin URIs. Mobile clients recognize bitcoin URIs in QR codes, so that the user does not have to type the bitcoin address and amount in manually. The QR code is generated from the user input based on the payment amount. The QR code is displayed on the mobile device screen and can be scanned by a second mobile device.

It has become common for miners to join organized mining pools, which combine the computational resources of their members in order to increase the frequency of generating new blocks. The reward for each block is then split proportionately among the members, creating a more predictable stream of income for each miner without necessarily changing their long-term average income, although a fee may be charged for the service.

The rewards of mining have led to ever-more-specialized technology being utilized. The most efficient mining hardware makes use of custom designed application-specific integrated circuits, which outperform general-purpose CPUs while using less power. As of 2015, a miner who is not using purpose-built hardware is unlikely to earn enough to cover the cost of the electricity used in their efforts, even if they are a member of a pool.

As of 2015, even if all miners used energy-efficient processors, the combined electricity consumption would be 1.46 terawatt-hours per year—equal to the consumption of about 135,000 American homes. In 2013, electricity use was estimated to be 0.36 terawatt-hours per year or the equivalent of powering 31,000 US homes.

The successful miner finding the new block is rewarded with newly created bitcoins and transaction fees. As of 28 November 2012, the reward amounted to 25 newly created bitcoins per block added to the block chain. To claim the reward, a special transaction called a coinbase is included with the processed payments. All bitcoins in existence have been created in such coinbase transactions. The bitcoin protocol specifies that the reward for adding a block will be halved every 210000 blocks (approximately every four years). Eventually, the reward will decrease to zero, and the limit of 21 million bitcoins will be reached c. 2140; the record keeping will then be rewarded by transaction fees solely.

Paying a transaction fee is optional, but may speed up confirmation of the transaction. Payers have an incentive to include such fees because doing so means their transaction is more likely to be added to the block chain sooner; miners can choose which transactions to process and prioritize those that pay higher fees. Fees are based on the storage size of the transaction generated, which in turn is dependent on the number of inputs used to create the transaction. Furthermore, priority is given to older unspent inputs.

A wallet stores the information necessary to transact bitcoins. While wallets are often described as a place to hold or store bitcoins, due to the nature of the system, bitcoins are inseparable from the block chain transaction ledger. A better way to describe a wallet is something that "stores the digital credentials for your bitcoin holdings" and allows you to access (and spend) them. Bitcoin uses public-key cryptography, in which two cryptographic keys, one public and one private, are generated. At its most basic, a wallet is a collection of these keys.

There are several types of wallets. Software wallets connect to the network and allow spending bitcoins in addition to holding the credentials that prove ownership. Software wallets can be split further in two categories: full clients and lightweight clients. Full clients verify transactions directly on a local copy of the block chain (projected to surpass 60 GB in 2016, which may be an inconvenience or impossible for some users). Lightweight (SPV/simplified payment verification) clients on the other hand consult a server to parse the block chain, and get only relevant transactions from the server (transactions to and from the user). When working with lightweight wallets, the user has to trust the server to a certain degree. The server can not steal bitcoins directly, or intercept transactions, but the server can report faulty values back to the user. With both types of software wallets, the users are responsible for keeping their private keys in a secure place.

Besides software wallets, Internet services called online wallets offer similar functionality but may be easier to use. In this case, credentials to access funds are stored with the online wallet provider rather than on the user's hardware. As a result, the user must have complete trust in the wallet provider. A malicious provider or a breach in server security may cause entrusted bitcoins to be stolen.

Physical wallets also exist and are more secure, as they store the credentials necessary to spend bitcoins offline. Examples combine a novelty coin with these credentials printed on metal, wood, or plastic. Others are simply paper printouts. Another type of wallet called a hardware wallet keeps credentials offline while facilitating transactions.

The first wallet program was released in 2009 by Satoshi Nakamoto as open-source code and was originally called bitcoin. Sometimes referred to as the "Satoshi client," this is also known as the reference client because it serves to define the bitcoin protocol and acts as a standard for other implementations. In version 0.5 the client moved from the wxWidgets user interface toolkit to Qt, and the whole bundle was referred to as Bitcoin-Qt. After the release of version 0.9, Bitcoin-Qt was renamed Bitcoin Core.

A wallet stores the information necessary to transact bitcoins. While wallets are often described as a place to hold or store bitcoins, due to the nature of the system, bitcoins are inseparable from the block chain transaction ledger. A better way to describe a wallet is something that "stores the digital credentials for your bitcoin holdings" and allows you to access (and spend) them. Bitcoin uses public-key cryptography, in which two cryptographic keys, one public and one private, are generated. At its most basic, a wallet is a collection of these keys.

There are several types of wallets. Software wallets connect to the network and allow spending bitcoins in addition to holding the credentials that prove ownership. Software wallets can be split further in two categories: full clients and lightweight clients. Full clients verify transactions directly on a local copy of the block chain (projected to surpass 60 GB in 2016, which may be an inconvenience or impossible for some users). Lightweight (SPV/simplified payment verification) clients on the other hand consult a server to parse the block chain, and get only relevant transactions from the server (transactions to and from the user). When working with lightweight wallets, the user has to trust the server to a certain degree. The server can not steal bitcoins directly, or intercept transactions, but the server can report faulty values back to the user. With both types of software wallets, the users are responsible for keeping their private keys in a secure place.

Besides software wallets, Internet services called online wallets offer similar functionality but may be easier to use. In this case, credentials to access funds are stored with the online wallet provider rather than on the user's hardware. As a result, the user must have complete trust in the wallet provider. A malicious provider or a breach in server security may cause entrusted bitcoins to be stolen.

Physical wallets also exist and are more secure, as they store the credentials necessary to spend bitcoins offline. Examples combine a novelty coin with these credentials printed on metal, wood, or plastic. Others are simply paper printouts. Another type of wallet called a hardware wallet keeps credentials offline while facilitating transactions.

Wallets and similar software technically handle bitcoins as equivalent, establishing the basic level of fungibility. Researchers have pointed out that the history of each bitcoin is registered and publicly available in the block chain ledger, and that some users may refuse to accept bitcoins coming from controversial transactions, which would harm bitcoin's fungibility. Projects such as Zero coin and Dark Wallet aim to address these privacy and fungibility issues. The implementation of a proposal for "Confidential Transactions" could increase the fungibility of bitcoins.

 




Auto BTC Trading is here to guide you through the trading system, provide a reliable trading system and ensure that you can trade with proper knowledge and with secure servers at hand.