Introducing Cryptocurrency (Bitcoin)
1. Basic Concepts
- Cryptocurrency is a type of digital currency that uses encryption technology to facilitate transactions and control the creation of new units. The most famous one is Bitcoin.
- Bitcoin is a decentralized digital currency that operates on a peer-to-peer network, recorded in a public distributed ledger known as blockchain.
2. Blockchain Technology
- Blockchain is a distributed database that records all Bitcoin transactions. It ensures the security and immutability of transactions through encryption technology.
- Blockchain consensus includes machine consensus (algorithm rules), governance consensus (man-made rules or modifications), and market consensus (equilibrium prices formed by market transactions).
3. Trustlessness
- Trustlessness refers to the fact that within a blockchain, transaction parties do not need to trust each other or a third-party institution. Transaction confirmation and status changes occur synchronously.
4. Applications and Regulation
- Cryptocurrency has multiple applications globally, but it has also raised regulatory issues. For example, China has implemented a comprehensive ban on virtual currency trading, as it believes it may lead to financial risks and illegal activities.
