Introduction to Cryptocurrency (Bitcoin)
1. Basic Concepts
- Cryptocurrency is a type of digital currency that uses encryption technology for transactions and control the creation of new units. The most famous one is Bitcoin.
- Bitcoin is a decentralized digital currency that uses a peer-to-peer network for transactions, recorded in a public distributed ledger called the 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 (rules established or modified by humans), and market consensus (equilibrium prices formed by market transactions).
3. Trustlessness
- Trustlessness refers to the fact that in a blockchain, transaction parties do not need to trust each other or a third-party institution, as transaction confirmations and state changes occur simultaneously.
4. Applications and Regulation
- Cryptocurrency has various applications globally but has also raised regulatory issues. For example, China has entirely banned virtual currency trading, citing potential financial risks and illegal activities.
