45 \end{center} |
45 \end{center} |
46 |
46 |
47 \noindent is signed by Satoshi Nakamoto, which however is |
47 \noindent is signed by Satoshi Nakamoto, which however is |
48 likely only a pen name. There is a lot of speculation who |
48 likely only a pen name. There is a lot of speculation who |
49 could be the inventor, or inventors, but we simply do not |
49 could be the inventor, or inventors, but we simply do not |
50 know. This part of Bitcoins is definitely anonymous so far. The paper |
50 know. This part of Bitcoins is definitely anonymous so far. |
51 above is from the end of 2008; the first Bitcoin transaction |
51 The paper above is from the end of 2008; the first Bitcoin |
52 was made in January 2009. The rules in Bitcoin are set up so |
52 transaction was made in January 2009. The rules in Bitcoin are |
53 that there will only ever be 21 Million Bitcoins with the |
53 set up so that there will only ever be 21 Million Bitcoins |
54 maximum reached around the year 2140. Currently there are |
54 with the maximum reached around the year 2140. Currently there |
55 already 11 Million Bitcoins in `existence'. Contrast this with |
55 are already 11 Million Bitcoins in `existence'. Contrast this |
56 traditional fiat currencies where money can be printed almost |
56 with traditional fiat currencies where money can be printed |
57 at will. The smallest unit of a Bitcoin is called a Satoshi, |
57 almost at will. The smallest unit of a Bitcoin is called a |
58 which is the $10^{-8}$th part of a Bitcoin. Remember a Penny |
58 Satoshi, which is the $10^{-8}$th part of a Bitcoin. Remember |
59 is the $10^{-2}$th part of a Pound. |
59 a Penny is the $10^{-2}$th part of a Pound. |
60 |
60 |
61 The two main cryptographic building blocks of Bitcoins are |
61 The two main cryptographic building blocks of Bitcoins are |
62 cryptographic hashing functions (SHA-256) and public-private |
62 cryptographic hashing functions (SHA-256) and public-private |
63 keys using the elliptic-curve encryption scheme for digital |
63 keys using the elliptic-curve encryption scheme for digital |
64 signatures. Hashes are used to generate `fingerprints' of data |
64 signatures. Hashes are used to generate `fingerprints' of data |
672 guy, Amazon was aware of this scam and in a goodwill gesture |
672 guy, Amazon was aware of this scam and in a goodwill gesture |
673 refunded him the money the nasty guys incurred over |
673 refunded him the money the nasty guys incurred over |
674 night with their Bitcoin mining. If you want to read the |
674 night with their Bitcoin mining. If you want to read the |
675 complete story, google for ``My \$2375 Amazon EC2 Mistake''. |
675 complete story, google for ``My \$2375 Amazon EC2 Mistake''. |
676 |
676 |
|
677 \subsubsection*{Multi-Signature Transactions} |
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678 |
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679 To be explained. |
677 |
680 |
678 \subsubsection*{Anonymity with Bitcoins} |
681 \subsubsection*{Anonymity with Bitcoins} |
679 |
682 |
680 One question one often hears is how anonymous is it actually |
683 One question one often hears is how anonymous is it actually |
681 to pay with Bitcoins? Paying with paper money used to be a |
684 to pay with Bitcoins? Paying with paper money used to be a |