ELI5 Multisignature Systems
What we call a Bitcoin is simply an unspent, signed transaction on the blockchain. (Technically called a UTXO, for Unspent Transaction (TX) Output.)
When you say you own such ...
ELI5: Cryptocurrency master keys
A cryptocurrency master key is a theoretical concept where one specially crafted cryptographic private key would be able to decrypt ciphertext encrypted using any public key.
Proof of Elapsed Time (POET) Summary [Cryptocurrency consensus mechanisms]
In this poetically named consensus mechanism, network participants prove that they have slept for a random amount of time before being able to mint a block. POET was released by Intel in 2016 and was originally aimed at trusted computing using Intel CPU’s. A special instruction set called Software Guard Extensions (SGX) allows programs to […]
Introduction to our commented Bitcoin source code section
Below you’ll find the main commented Bitcoin source code sections (sorted by section name and filename). Core amount.h – Defines the CAmount typedef, implements minimum and maximum valid amount range check. base58.cpp – The encoding function used for Bitcoin addresses. Base58 removes some potentially ambiguous characters from Base64 so Bitcoin addresses can be written down […]
ELI5 Proof of Stake (PoS) – How does PoS work?
In the cryptocurrency universe, Proof of Stake (PoS) is an alternative to the Proof of Work (PoW) consensus mechanism. How PoS Works While PoW guarantees that each network participant has performed a certain amount of work in order to receive a reward, Proof of Stake requires participants to prove that they are willing to guarantee […]
Opinion: Bitcoin no longer a contrarian investment [February, 2018]
Early Bitcoin investors got used to the common sense that cryptocurrencies were an alternative to the mainstream financial system. True that Satoshi’s original vision, where each user could mine a bit of BTC per day as a reward for keeping their full node running, may have seemed like a revolutionary alternative to the mainstream financial […]
Concepts In This Page
SHA256 is an encryption routine which produces a unique and irreversible digest for a given message.
Bitcoin is the world's first viable decentralized cryptocurrency. It was released on January 2009 by Satoshi Nakamoto.
A Bitcoin Puzzle is a cryptographic puzzle which carries Bitcoin as a reward. Those able to break the cryptography obtain access to the private key needed to unlock the Bitcoin.
A process or system by which multiple parties are able to reach consensus. In the context of cryptocurrencies, it's the process which allows for everyone to agree on everyone else's money balance. E.g. Bitcoin employs Nakamoto consensus via PoW mining.
A concept of value exchange that does not require physical tokens (coins or paper cash) to be used in order to trade. Cryptocurrencies are a type of digital money.
A distributed ledger is a decentralized financial database with data stored across multiple locations.
Hal Finney was a cryptographer who pioneered the development of Bitcoin. Finney received the first ever Bitcoin transfer.
Public Key Encryption
Public Key Encryption is an encryption method by which the encoding and decoding keys are different. AKA asymmetric encryption. Examples include RSA and elliptic curve cryptography (the latter used in Bitcoin and most cryptocurrencies).