This course offers you an opportunity to know about bitcoins and cryptocurrency and through this you can learn about different relationships existing in the bitcoins to earn profits.
|The Asset Is Built-In||
The asset called Bitcoin is produced and managed completely within the Bitcoin network. Therefore, the history and quantity of every movement of Bitcoins is mathematically verifiable by the recorded history in the distributed ledger of the Bitcoin network.
|Party Identity Abstraction||
Security by obscurity is built in to the platform, meaning individual parties are never identified. Instead, security keys (public and private key pairs) are required to gain access to transaction output. Only the holder of the private key can send Bitcoins or get access to received Bitcoins. Only the private key owners know their total aggregated amount of Bitcoins.
Every transaction record (ledger entry) is linked to previous transactions and is standardized for every participating node. Every ledger entry is retractable across its full history and can be reconstructed.
These are the standardized rules and conditions applied to a transaction. Every node applies the same rules. In the simple Bitcoin model, a Bitcoin is moved from one party to another according to rules. Newer versions of the blockchain have expanded the scope and capabilities of those rules, which form the basis of what is called “smart contracts.”
There is a standard network protocol that allows every participating node to receive every transaction and apply the same validation rules.
This is the single standard for how every node stores the transaction data (ledger data). Every node adheres to that standard and can have a full copy of the data. This is sometimes called the “distributed ledger.” Records, or blocks of transactions, are added to the blockchain and include a link to the previously added block. This is the official point of immutable recording of a transaction.
This consists of the standards and rules for how every node exchanges the blockchain information, the mathematical rules for all nodes to agree on the integrity of that data (sometimes called “proof of work”) and the payment incentive to support the consensus model. A key point of the model and this entire platform is a method to ensure all transactions are validated and all valid transactions are added once and only once. No valid transactions can be omitted (sometimes referred to as censorship) and, in the case of the Bitcoin network, a Bitcoin cannot be double spent.
|Trust vs. No Trust or Permissioned vs. Not Permissioned||
The “No trust” model refers to the public and open access of the Internet on which the Bitcoin network was built. Anyone can download the open-source software and join. The Bitcoin network was constructed to distrust any node based on a model that works as long as a majority (>51%) of the nodes act as honest participants in the consensus activity described above. Trusted, or permissioned, implementations are significant modifications to that model, which requires permissioned servers to be approved and on-boarded in order to participate.