Bitcoin
Bitcoin
Name
DeVry University
A new form of currency has existed for quite some time now called cryptocurrency, and not many people know about it. There are many forms of cryptocurrency out today: the Litecoin, Peercoin, Zetacoin, and Megacoin are all a few examples, and more are springing up every day. Cryptocurrencies are formed by performing complex mathematical algorithms to decipher an encrypted chunk of data into the fixed length hash. The currency that inspired them all is the Bitcoin, and its value has begun to skyrocket as a result of the media coverage and new public interest. Many look to the new currency as a way around banking institutions, “The Man”, and an easy way to avoid unnecessary fees and fines. However, not everybody is excited about the rise of a new form of currency, especially the government. The Bitcoin was brought into existence in 2008 when a paper was released by someone with the pseudonym Satoshi Nakamoto. He explained the technicalities behind Bitcoin. The author’s actual name has not been identified to my knowledge. In the introduction of the paper, Nakamoto states that, “Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments. While the system works well enough for most transactions, it still suffers from the inherent weaknesses of the trust based model.” The Bitcoin circumvents the need for third parties by maintaining a complete log of every Bitcoin creation and every transaction using Bitcoin by tracking the cryptographic hashes used to create it.
Even though everything about the currency is public, from its creation to each transaction, it is all maintained in the public ledger of the digital currency. Stil, it provides a means of anonymity. This is because the term "cryptocurrency" refers to the fact that the currency is created, or "mined," from cryptographic hashes.” Sean Michael Kerner (2013).
Name
DeVry University
A new form of currency has existed for quite some time now called cryptocurrency, and not many people know about it. There are many forms of cryptocurrency out today: the Litecoin, Peercoin, Zetacoin, and Megacoin are all a few examples, and more are springing up every day. Cryptocurrencies are formed by performing complex mathematical algorithms to decipher an encrypted chunk of data into the fixed length hash. The currency that inspired them all is the Bitcoin, and its value has begun to skyrocket as a result of the media coverage and new public interest. Many look to the new currency as a way around banking institutions, “The Man”, and an easy way to avoid unnecessary fees and fines. However, not everybody is excited about the rise of a new form of currency, especially the government. The Bitcoin was brought into existence in 2008 when a paper was released by someone with the pseudonym Satoshi Nakamoto. He explained the technicalities behind Bitcoin. The author’s actual name has not been identified to my knowledge. In the introduction of the paper, Nakamoto states that, “Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments. While the system works well enough for most transactions, it still suffers from the inherent weaknesses of the trust based model.” The Bitcoin circumvents the need for third parties by maintaining a complete log of every Bitcoin creation and every transaction using Bitcoin by tracking the cryptographic hashes used to create it.
Even though everything about the currency is public, from its creation to each transaction, it is all maintained in the public ledger of the digital currency. Stil, it provides a means of anonymity. This is because the term "cryptocurrency" refers to the fact that the currency is created, or "mined," from cryptographic hashes.” Sean Michael Kerner (2013).
References: Goodale, G. (2013, November 18). Congress asks: Is Bitcoin a threat or a revolution?. Christian Science Monitor. p. N.PAG. Kerner, Sean Michael (2013, Dec 04). Bitcoin Has Company on Cryptocurrency Stage. Eweek.com, 1. e- Nakamoto, S. (2008). Bitcoin: A Peer-to-Peer Electronic Cash System. Bitcoin.org, 1. Newton-Small, J. (2013). Bitcoin Goes to Washington: Monday 's Hearing Is Just the Beginning. Time.Com, 1.