Cryptocurrency (Bitcoin) Introduction
1. Basic Concept
- Cryptocurrency is a digital currency that uses encryption technology for transactions and controls 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 on a public distributed ledger known as the blockchain.
2. Blockchain Technology
- Blockchain is a distributed database that records all Bitcoin transactions. It ensures transaction security and immutability through encryption technology.
- Blockchain Consensus includes machine consensus (algorithm rules), governance consensus (manually setting or modifying rules), and market consensus (equilibrium prices formed through market transactions).
3. Trustlessness
- Trustlessness refers to the fact that in blockchain, transaction parties do not need to trust each other or any third-party institution. Transaction confirmation and status changes occur synchronously.
4. Applications and Regulations
- Cryptocurrency has various applications globally, but also raises regulatory issues. For example, China has completely banned virtual currency trading, citing potential financial risks and illegal activities.
