Quick facts about the Digital currency Bitcoin
Small section of random facts about the digital currency Bitcoin
- The decoded coinbase contains a message from the most recent block found, this information is inserted by the person or pool who solves the block. This can be used to identify who solved the block, or just embed a message.
- There will be a maximum 21 Million BTC produced.
- A BTC address is two parts, a public and private key. Whoever controls the private key controls the coin. The public key is to identify where the coins are at or where they are going, the private key is the code needed to actually send them.
- Bitcoin Miners are paid; Bitcoin relay nodes are not. Miners solve the mathematical problem to unlock the reward, relay nodes push (or relay) the transactions across the network.
- When a Bitcoin transaction is sent, it waits in line with the other transactions to be included in a block. A block has to be found and the transaction included for a transaction to get confirmed as valid.
- The block reward was 25 BTC plus fees (now the block reward 12.5 BTC plus fees). It reduces down at set schedules in the future to reduce subsidies for mining and increase fees on transactions.
- The block chain is the public ledger; it contains all block and transactions since the Genisis block.
- The Genisis Block was the first block or block number 0.
- Network Difficulty adjusts every 2016 Blocks. The target is for one block to be found every 10 minutes.
- BTC is SHA-256, Litecoin is Scrypt. Hardware made for one network will not work on the other.
- Bitcoin Mining started on regular computers; then special graphics cards, then FPGAs and finally dedicated ASIC mining equipment.
- Dedicated mining hardware compared to an ordinary computer, the dedicated Bitcoin mining hardware is around 1 million times faster.
This now leads me to the next chapter, the best Bitcoin I ever spent