Difference between revisions of "Bitcoin"

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* 2009, January 03rd. at 06:15:05 PM - The Bitcoin blockchain started with the Genesis Block.
 
* 2009, January 03rd. at 06:15:05 PM - The Bitcoin blockchain started with the Genesis Block.
 
* 2009, January 09th. at 02:54:25 AM - The Second Block, "Block #1" was added to the Bitcoin Blockchain.
 
* 2009, January 09th. at 02:54:25 AM - The Second Block, "Block #1" was added to the Bitcoin Blockchain.
* 2009, January 09th. - Satoshi Nakamoto releases the Bitcoin Core v0,1 software for downlode on bitcoin.org .
+
* 2009, January 09th. - Satoshi Nakamoto releases the Bitcoin Core v0,1 software for download on bitcoin.org .
 +
* 2009, January 11th. at 04:33:00 PM - Hal Finney twitted "Running bitcoin" which was the first-ever Bitcoin-related tweet.
 
* 2009, January 12th. at 03:30:25 AM - The first Bitcoin transaction happened, other than mining, in "Block #170" for 10 Bitcoins from Satoshi Nakamoto to Hal Finney.
 
* 2009, January 12th. at 03:30:25 AM - The first Bitcoin transaction happened, other than mining, in "Block #170" for 10 Bitcoins from Satoshi Nakamoto to Hal Finney.
* 2009, December 30th. at 06:11:04 AM - The first Blockchain difficulty change happened in "Block #32256". This happen after 15 potential difficulty changes before it. The actually change from 1 to 1.18, indicating that there where quite few maskings mining before this stage.
+
* 2009, December 30th. at 06:11:04 AM - The first Blockchain difficulty change happened in "Block #32256". This happen after 15 potential difficulty changes before it. The actually change from 1 to 1.18, indicating that there were quite few maskings mining before this stage.
 
* 2009, December 31st. at 11:59:59 - The Price of Bitcoin was $0,00 USD.
 
* 2009, December 31st. at 11:59:59 - The Price of Bitcoin was $0,00 USD.
 
* 2010, February 6th. -  Bitcoin Market, the first official cryptocurrency stock exchange, is launched.
 
* 2010, February 6th. -  Bitcoin Market, the first official cryptocurrency stock exchange, is launched.

Revision as of 11:56, 13 January 2020

What is Bitcoin:

Definition:
“Bitcoin is a non-debt based, irreversible, digital asset, with an intrinsic value in the security and inclusion of the payment system and decentralized governance structure that runs on a global transparent ledger on open networks like the Internet.”
 

  • Non-Debt Based, There is no lone connected, like a piece of Gold. The opposite would be value of paper money, not coins, is a lone paper form the central bank and digital money is a what the bank own or has lent you.
  • Irreversible, Once a transaction is done there is no going back. No one can delete a transaction, just create a new transaction to send the value back.
  • Digital asset, The thing (asset) is bits and bytes on a computer (digital) not physical.
  • Intrinsic, The Origin is a medical term, not a financial. It means you need something to get a function ex. you need a knee to bend your leg. In this case you need security, inclusion and agreed decentralized governance structure to get value.
  • Security, The strength of the system.
  • Inclusion, How many can take part in this system
  • Decentralized, no singe point of failure can stop or hurt the system in anyway.
  • Governance structure, Who is in charge, if anyone and what are the rules (law).
  • Transparent, anyone can see or look up all the information that is available for system.
  • Ledger, a record of all inputs / transactions.
     

Features

The features of Bitcoin are: The features organizations want:
Open Source Closed Source
Global Local
Immutable permanent ledger Editable ledger (for correcting slipups)
Permission-less (anyone can join) Permission (Only for verified customers)
Censorship resistant Censored (think about sending value to WikiLeaks)
Decentralized / Flat structure Centralized / Hierarchical structure
Pseudonymous Control Identity / KYC
Proof of work consensus Proof of Stake / PoAuthority / PoState
Innovate without permission Controlled team of innovators
This is Bitcoin. This is not Bitcoin
 
The Internet of money or IoM like IoT (Internet of things), a currency / value token that can buy gods and services globally using the Internet.
The value token network that runs on the Internet with sets or blocks of transaction data packaged and blocks are built on top of each other to locked them in sequential order.
Digital assets / money that is programmable and can be self regulated.
 
 

Bitcoin FAQ

  • Only 20 999 999,99755530 or less bitcoins will ever exist.
  • The consensus algorithm is Proof of Work.
  • The lowest denomination of bitcoin is 1 Satoshi. There are 100 million Satoshi’s to every bitcoin. That is 8 numbers behind the coma, (1 Satoshi = 0,00000001 Bitcoin).
  • Every Satoshi can be programed to carry 256 characters.
  • Bitcoin is run decentralized on a flat structure as opposed to a centralized hierarchical structure.
  • Bitcoin is design to be the senders “push transaction” and that no entity like banks, governments or 3rd party can stop a sender from pushing transaction to be executed. In effect the sender is the ultimate authority and decides who he or she pays value to.
  • The Bitcoin code has never been successfully hacked, but we have seen many examples of centralized wallets that have been broken into (Hacked).
  • The software is open sours and the code is available on GitHub.
  • The difficulty parameter, that is built into the software, is adjusted every 2016 blocks to change to try and keep a 10-minute block time on average based on the blockchain performance the last 2016 blocks.
  • Hashing is a brute-forced mechanism by the miners (supercomputers with ASIC CPU’s (Application Specific Integrated Circuits Central Processing Units)) guessing the right combination.
  • An executed SHA256 hash is one try to guess the right combination on the complex lock holding the blocks together.
    • Side note:
      • 1 guess = 1 hash
      • 1024 hash = 1 Kilohash
      • 1024 kilohash = 1 Megahash
      • 1024 Megahash = 1 Gigahash
      • 1024 Gigahash = 1 Terahash
      • 1024 Terahash = 1 Petahash
      • 1024 Petahash = 1 Exahash
  • The miners get rewarded for the blocks that they solve and broadcast to the rest of the network first.
  • Every 210.000 blocks the miner reward gets halved.
  • In the current bitcoin software, Bitcoin Core ver. 0.17.1 the block size limit is set to 1 Mbite of transaction data.
    • Many new proposals of software with larger block size have been set on the network backwards compatible with Bitcoin Core.
    • To change the current software (Hard fork) 75% of miners need to be mining on to the new software. At the time when 75% is reached, there will be "Grace period" of 1,209,600 second (two weeks) before the new features will be in effect and the Hard fork is completed. This acording to BIP0101.
       

Bitcoin History Facts

  • 1982, - David Chaum wrote a paper on eCash: "Blind Signatures for Untraceable Payments".
  • 1997, May - Adam Back invents Hashcash.
  • 1998, - Nick Sabo makes Bit Gold.
  • 1998, November - Wei Dai outlines B-Money.
  • 2004, - Hal Finney makes Reusable Proof of Work.
  • 2008, August 18th. at 01:19:55 PM - The domain name "Bitcoin.org" was registered.
  • 2008, October 31st. at 02:10:00 PM (EDT) Eastern Daylight Time - The "Bitcoin: A Peer-To-Peer Electronic Cash System" white paper surfaced.
  • 2008, November 09th. - The Bitcoin project was registered at the open-source-projects community resource, SourceForge.net.
  • 2009, January 03rd. at 06:15:05 PM - The Bitcoin blockchain started with the Genesis Block.
  • 2009, January 09th. at 02:54:25 AM - The Second Block, "Block #1" was added to the Bitcoin Blockchain.
  • 2009, January 09th. - Satoshi Nakamoto releases the Bitcoin Core v0,1 software for download on bitcoin.org .
  • 2009, January 11th. at 04:33:00 PM - Hal Finney twitted "Running bitcoin" which was the first-ever Bitcoin-related tweet.
  • 2009, January 12th. at 03:30:25 AM - The first Bitcoin transaction happened, other than mining, in "Block #170" for 10 Bitcoins from Satoshi Nakamoto to Hal Finney.
  • 2009, December 30th. at 06:11:04 AM - The first Blockchain difficulty change happened in "Block #32256". This happen after 15 potential difficulty changes before it. The actually change from 1 to 1.18, indicating that there were quite few maskings mining before this stage.
  • 2009, December 31st. at 11:59:59 - The Price of Bitcoin was $0,00 USD.
  • 2010, February 6th. - Bitcoin Market, the first official cryptocurrency stock exchange, is launched.
  • 2010, May 22nd. - First online purchase using bitcoin. Laszlo Hanyecz (indirectly) buys Papa John's pizza for 10,000 coins (25 USD – Bitcoin value was 0.0025 cents for 1 coin).
  • 2010, October 7th. - Bitcoin exchange rate begins to escalate, after several months stuck at USD $0.06 per BTC.
  • 2010, December 16th. - First block generated by mining pool under user sluch.
  • 2010, December 31st. at 11:59:59 - The Price of Bitcoin was $ 0,30 USD.
  • 2011, January - The Electronic Frontier Foundation (EEF), a non-profit group, started accepting bitcoins.
  • 2011, June - WikiLeaks and other organizations began to accept bitcoins for donations.
  • 2011, June 2nd. - USD to BTC rate is 10 USD to the coin. For 6 days, the Bitcoin value is fixed at 31.91 USD on MtGox.
  • 2011, December 31st. at 11:59:59 - The Price of Bitcoin was $ 4,60 USD.
  • 2012, November - WordPress had started accepting bitcoins.
  • 2012, November 28th. - The reward to miners halved to 25 bitcoins in "Block #210 000".
  • 2012, December 31st. at 11:59:59 - The Price of Bitcoin was $ 13,62 USD.
  • 2013, October - The FBI seized roughly 26,000 BTC from website Silk Road during the arrest of alleged owner Ross William Ulbricht.
  • 2013, October 31st.- The World first Bitcoin ATM (BTM) was open for business at WAVES Coffee House 900 Howe St. #100. Vancouver, BC V6Z 2M4 Canada.
  • 2013, November - The University of Nicosia announced that it would be accepting bitcoin as payment for tuition fees.
  • 2013, November 30th. - A Bitcoin All Time High as set, was set at $ 1 156,14 USD.
  • 2013, December 31st. at 11:59:59 - The Price of Bitcoin was $ 754,01 USD.
  • 2014, February - Mt. Gox had filed for bankruptcy protection in Japan amid reports that 744,000 bitcoins had been stolen.
  • 2014, December - Microsoft began to accept bitcoin to buy Xbox games and Windows software.
  • 2014, December 31st. at 11:59:59 - The Price of Bitcoin was $ 320,19 USD.
  • 2015, December 31st. at 11:59:59 - The Price of Bitcoin was $ 430,57 USD.
  • 2016, July 10th. - The reward to miners halved to 12,5 bitcoins in "Block #420 000".
  • 2016, December 31st. at 11:59:59 - The Price of Bitcoin was $ 963,74 USD.
  • 2017, February 09th. - The price of one bitcoin is approximately $1070, - USD roughly 8900, - NOK.
  • 2017, February 09th. - The Bitcoin Blockchain is running at approximately 4 ExaHash per second, that is 4.611.686.018.427.390.000 guesses per second.
  • 2017, August 01st. - The Bitcoin / Bitcoin Cash Hard fork in "Block #478 558".
  • 2017, December 17th. - The Bitcoin All Time High, at this moment, was set at $ 20 089,00 USD.
  • 2017, December 31st. at 11:59:59 - The Price of Bitcoin was $ 14 156,40 USD.
  • 2018, December 31st. at 11:59:59 - The Price of Bitcoin was $ 3 742,70 USD.
  • 2019, April 12th. - The Bitcoin Blockchain is running at approximately 47,68 ExaHash per second,that is 54.975.581.388.800.000.000 guesses per second.
  • 2019, September 18th. - The Bitcoin Blockchain is running at approximately 98,08 ExaHash per second, that is 113.083.380.034.552.000.000 guesses per second.
  • * 2020, May 25th. - The reward to miners halved to 6,25 bitcoins in "Block #630 000".
  • * 2024, February - The reward to miners halved to 3,125 bitcoins. in "Block #840 000".
  • * 2140, - All Bitcoins will have been mined and there are no more rewards, however the transaction fee will be incentive for the miners to continue.

( *=Estimated )Report errors or additions to b(a)mrbitcoin.no

The Bitcoin Halving Process

The halving happens every 210 000 Blocks
Block 0 to 209999 the block award where 50 Bitcoins per block. In total 10 500 000 bitcoins where generated from 2009-01-03 to 2012-11-28
Block 210000 to 419999 the block award where 25 Bitcoins per block. In total 5 250 000 Bitcoins where generated from 2012-11-28 to 2016-07-09
Block 420000 to 629999 the block award are 12,5 Bitcoins per block. In total 2 625 000 Bitcoins are generated from 2016-07-09 to estimated 2020-05-25
Block 630000 to 839999 the block award will be 6,25 Bitcoins per block. In total 1312500 Bitcoins could be generated Estimated from 2020-05-25 to 2024 spring time
Block 840000 to 1049999 the block award will be 3,125 Bitcoins per block. In total 656250 Bitcoins could be generated Estimated from 2024 to 2028
Block 1050000 to 1259999 the block award will be 1,5625 Bitcoins per block. In total 328125 Bitcoins could be generated Estimated from 2028 to 2032
Block 1260000 to 1469999 the block award will be 0,78125 Bitcoins per block. In total 164062,5 Bitcoins could be generated Estimated from 2032 to 2035
Block 1470000 to 1679999 the block award will be 0,390625 Bitcoins per block. In total 82031,25 Bitcoins could be generated Estimated from 2035 to 2039
Block 1680000 to 1889999 the block award will be 0,1953125 Bitcoins per block. In total 41015,625 Bitcoins could be generated Estimated from 2039 to 2043
Block 1890000 to 2099999 the block award will be 0,09765625 Bitcoins per block. In total 20507,8125 Bitcoins could be generated Estimated from 2043 to 2047
Block 2100000 to 2309999 the block award will be 0,04882813 Bitcoins per block. In total 10253,90625 Bitcoins could be generated Estimated from 2047 to 2051
Block 2310000 to 2519999 the block award will be 0,02441406 Bitcoins per block. In total 5126,953125 Bitcoins could be generated Estimated from 2051 to 2054
Block 2520000 to 2729999 the block award will be 0,01220703 Bitcoins per block. In total 2563,4765625 Bitcoins could be generated Estimated from 2054 to 2058
Block 2730000 to 2939999 the block award will be 0,00610352 Bitcoins per block. In total 1281,73828125 Bitcoins could be generated Estimated from 2058 to 2062
Block 2940000 to 3149999 the block award will be 0,00305176 Bitcoins per block. In total 640,86914063 Bitcoins could be generated Estimated from 2062 to 2066
Block 3150000 to 3359999 the block award will be 0,00152588 Bitcoins per block. In total 320,43457031 Bitcoins could be generated Estimated from 2066 to 2070
Block 3360000 to 3569999 the block award will be 0,00076294 Bitcoins per block. In total 160,21728516 Bitcoins could be generated Estimated from 2070 to 2073
Block 3570000 to 3779999 the block award will be 0,00038147 Bitcoins per block. In total 80,10864258 Bitcoins could be generated Estimated from 2073 to 2077
Block 3780000 to 3989999 the block award will be 0,00019073 Bitcoins per block. In total 40,05432129 Bitcoins could be generated Estimated from 2077 to 2081
Block 3990000 to 4199999 the block award will be 0,00009537 Bitcoins per block. In total 20,02716064 Bitcoins could be generated Estimated from 2081 to 2085
Block 4200000 to 4409999 the block award will be 0,00004768 Bitcoins per block. In total 10,01358032 Bitcoins could be generated Estimated from 2085 to 2089
Block 4410000 to 4619999 the block award will be 0,00002384 Bitcoins per block. In total 5,00679016 Bitcoins could be generated Estimated from 2089 to 2092
Block 4620000 to 4829999 the block award will be 0,00001192 Bitcoins per block. In total 2,50339508 Bitcoins could be generated Estimated from 2092 to 2096
Block 4830000 to 5039999 the block award will be 0,00000596 Bitcoins per block. In total 1,25169754 Bitcoins could be generated Estimated from 2096 to 2100
Block 5040000 to 5249999 the block award will be 0,00000298 Bitcoins per block. In total 0,62584877 Bitcoins could be generated Estimated from 2100 to 2104
Block 5250000 to 5459999 the block award will be 0,00000149 Bitcoins per block. In total 0,31292439 Bitcoins could be generated Estimated from 2104 to 2108
Block 5460000 to 5669999 the block award will be 0,00000075 Bitcoins per block. In total 0,15646219 Bitcoins could be generated Estimated from 2108 to 2111
Block 5670000 to 5879999 the block award will be 0,00000037 Bitcoins per block. In total 0,07823110 Bitcoins could be generated Estimated from 2111 to 2115
Block 5880000 to 6089999 the block award will be 0,00000019 Bitcoins per block. In total 0,03911555 Bitcoins could be generated Estimated from 2115 to 2119
Block 6090000 to 6299999 the block award will be 0,00000009 Bitcoins per block. In total 0,01955777 Bitcoins could be generated Estimated from 2119 to 2123
Block 6300000 to 6509999 the block award will be 0,00000005 Bitcoins per block. In total 0,00977889 Bitcoins could be generated Estimated from 2123 to 2127
Block 6510000 to 6719999 the block award will be 0,00000002 Bitcoins per block. In total 0,00488944 Bitcoins could be generated Estimated from 2127 to 2131
Block 6720000 to 6929999 the block award will be 0,00000001 Bitcoins per block. In total 0,00244472 Bitcoins could be generated Estimated from 2131 to 2135
Block 6930000 and on wards the block award will be 0 Bitcoins per block. Estimated from year 2135 on wards

In total all block awards will equal 20 999 999,99755530 Bitcoins, almost 21 million

First vertion of Bitcoin.org

Bitcoin.org ver1.png


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