Introduction
In 2008, Satoshi Nakamoto published an article in which he proposed a new electronic money system based on a peer-to-peer network. This system, known as Bitcoin, allows transactions to take place directly between users without the need for a trusted third party such as a bank. In this article we will look at the basic principles and mechanisms underlying Bitcoin.
Double Spending Problem
One of the key problems that Bitcoin solves is the problem of double spending. Traditional electronic payment systems solve this problem by using a central trusted authority that keeps a record of all transactions. Bitcoin uses a distributed network where every transaction is verified and recorded in a public ledger called the blockchain.
Blockchain
A blockchain is a chain of blocks, each of which contains a list of transactions. Each block is linked to the previous one using a cryptographic hash, ensuring data immutability. Adding a new block to the chain requires solving a complex cryptographic problem, making the system secure from attacks.
Consensus mechanism
To achieve consensus in the Bitcoin network, the Proof-of-Work algorithm is used. Participants in the network, called miners, compete to solve a cryptographic problem. The first miner to solve the problem gets the right to add a new block to the blockchain and receives a reward in the form of new bitcoins. This process also serves to release new coins into the system.
Privacy and Security
Bitcoin provides a high level of privacy and security through the use of cryptographic methods. Users can create anonymous addresses to receive and send bitcoins, and all transactions are protected by digital signatures. However, since all transactions are publicly recorded on the blockchain, complete anonymity is not guaranteed.
Conclusion
Bitcoin is a revolutionary electronic money system that solves many of the problems of traditional payment systems. The use of a peer-to-peer network, blockchain and Proof-of-Work algorithm ensures security, transparency and decentralization. Despite some challenges and limitations, Bitcoin continues to develop and attract the attention of both users and researchers.
This article provides an overview of how Bitcoin works, based on an original article by Satoshi Nakamoto.