Bitcoin Network is a peer

Bitcoin Network is a peer to-peer network that is operated through cryptographic protocols. Users use Bitcoin cryptocarnation wallet software and exchange bits of coins through digital messaging process. Transactions are recorded in a distributed, reprinted public database known as Blockacain, and a consolidation is achieved in the proof of mining proof of work protocols. Bitcoin Designer Satoshi Nakamoto claimed that Bitcoin design and coding started in 2007. [2] The project was released in 2009 as open source software.

The Bitcoin network requires a minimal framework for sharing transactions. A special-decentralized network of volunteers is enough for that. Messages are promoted on the basis of maximum effort. Nodes can opt out of the network as desired, can be re-connected. After reconnection, a node checks and downloads new blocks of other nodes to complete local copies of blockchain

Transaction

A bitcoin can be expressed as a sequence of transactions signed in digital means, starting from the birth of bit coins as a prize for the block. Bitcoin owners are required to hand over Bitcoin to the next owner through the digital signature of BITAKAYAN TRANSACTION, in order to authorize bank checks in general terms. One recipient can check each transaction made for verification of ownership chain. However, bit checks like the general check approval are not reversible, which eliminates the risk of chargaback fraud

maining

Bitcoin uses a "proof of work network" to create a distributed timestamp server as a peer-to-peer network. This work is often called Bitcoin Mining. The signature is not available, but the signature is found out. This process is intensely related to energy. More than 90 percent of total expenditure is spent on electricity for miner management. In order to operate an information center for Bitcoin Mining in China, it requires a maximum of 135 megawatts of power.

The original invention of Satoshi Naakamoto was the need to prove proof of work to provide signature for Blockchain. There is a block in the mining process, which provides a smaller number than the target of the given difficulty, if hash twice with the SHA-2556. Where the required average amount of work increases in the opposite proportion of the target of the target, then a hash can be verified by launching a round dual SHA-2556.

Bitcoin can be found to be valid for a timestamp network by increasing one of the number of times it can be used. As long as the hash number of the block has not been given the required number of precursors, then the value of the number is increased. Once the hash process returns a valid result, the block can not be changed until the task is re-executed. After the blocks are chained with it, the next one is to work again to change the blocks.

Most consensus is expressed in Bitakay with the largest chain, and the maximum effort is required to create this chain. If the majority of the power measurements are controlled by the proper node, then the number of honest chains will also increase rapidly and it will surpass any competitive chain. To change any of the previous blocks, an attacker must reproduce the block and all the subsequent blockages and work on the proper node. As soon as the block is added, the likelihood of being able to keep pace with an aggressive attacker decreases exponentially.

Disadvantage

Bitcoin Mining is a competitive endeavor. One kind of "best weapon-winning competition" was seen through various hashing technologies used in the Bitcoin mines. In many gaming computers, FPGA and ASIC, common CPUs, the use of higher GPUs reduces the profitability of the little specialized technologies. Specialized ASIC for Bitcoin has now become a basic way for bitcoin mining and the drop in GPU has exceeded 300x. Since bit queues have become more difficult, computer hardware manufacturers are seeing increased sales of high speed ASIC products.

To reduce the difference between income from miner, the power of the computer is often gathered or submitted ("pooled"). Each mining rig has to wait a long time to ensure transactions and payments made. When the participating server can solve a block every time, all miners participating in a pool pay the money. This money is given based on the amount of work done by each miner to find that block. Bitcoin data centers generally spread out of the public eye and spread around the world, and there is also the tendency of being surrounded by centers around low-cost electricity areas.
Power consumption
In 2013, Mark Gimin calculated that the cost of electricity could be 40.9 megawatts (982 megawatt-hours a day). In 2014, according to Hac McCack, 80.7 megawatt (80,666 kilowatt) of this expenditure In 2015, according to the Economist, if all miners use modern facilities, the combined electricity costs can be 166.7 megawatts (1.46 terawatt-hours per year).

To reduce costs, Bitcoin mines have been installed in places like Iceland where geothermal energy is cheap and free of cold polar air free. Chinese Bitcoin Miners use Tibet's hydroelectric power to reduce electricity costs

The overall description of the process of miting the bitcoin:

New transactions are broadcast on all nodes.
Each miner's node collects new transactions in a single block.
Each miner node works to find a job proof code for its block.
When a node finds evidence of a work, it can block all nodes.
Accepting documents validates all transactions and only if all transactions are valid.
Includes the hashed block of approved blocks and the nodes start accepting themselves after starting the next block.

Mines made Bitcoin

According to the convention, the first transaction of the block is of a special kind, which produces new bittacquains owned by the owner of the block. It is considered as an incentive for nodes to support the network. It also shows the way to execute new bitscannies. After every 210 million blocks, the amount of mining reward is half. It started its journey from 50 Bitcoin, in late 2012, it decreased to 25 and reached 12.5 bitcount in 2016. [6] This half-way process continues to run 64 times until the completion of the new Bitcoin.

Security

Its practical or theoretical use has been considered as a possible attack and payment method in Bitcoyan network. There are some features of the Bitcoin Protocol that can prevent unauthorized attacks like unauthorized costs, double costs, bitcoin frauds and blockchain tempering. Users need enough caution for other attacks, such as stealing personal keys. [7] [8]

Unauthorized expenditure

With the implementation of public-private key cryptography, the amount of unauthorized expenditure can be reduced. For example, when Elise sends Bitcoin to Bob, Bob is the new owner of Bitcoin. If someone named Eve, who sees the transaction, may want to spend the bits received by Bob, but he can not sign the transaction if he or she does not know what's private. [8]

Dual expenditure

The problem that must be resolved on the internet payment system is "double spending", where a user gives the same bitcoin to two or more customers. For example, such a problem will arise if Eve sends the same bitkayena first alice and then sends Bob. To protect against double exposure, the Bitcoin Network records all Bitcoin transactions in an account (Blockchain) which is visible to all users and ensures that the transactioned bittakanas have never been used before. [8]: 4

Race Attack

If Eve gives Elise the money in exchange for a commodity and also sign contracts for the transaction, at the same time it can arrange for the same bitcoin to send to Bob. According to the rules, the network will only accept a transaction. This is called a "race attack", because there is a race competition about which transactions will be accepted before. Alice can reduce the risk of race attacks by imposing this condition of the contract, that they will not deliver the product until the eve payment is made visible in Blockchain. [9]

A miner is needed in a different type of race attack (which is known as the Finni attack according to the current phineeme). Rather than sending a request for a refund to both the network (Bob and Alice with the same coin), the eve network only requests Alice to pay the money, but at the same time trying to milele a block that includes Bob's payment instead of Alice. There is a good possibility that Elise's penny miner network will get rid of this evil before the payment of Elise's payment is rejected. Alice may reduce the risk of a fundamental attack such as a normal race attack while waiting for her payment to include in Blockachen. [10]

History changes

There is a block containing the transaction information given at the beginning of every block added to Blockchain which is called the approval of that transaction. In the typical case, before accepting the payment, the business and services that accept payment through Bitcoin should wait for at least one approved distribution network. If a trader waits for more approval, it is difficult for an attacker to reverse the blockchain transaction - unless the attacker brings more than half of the total network capacity, ie 51% attacks. [11]

Deanimization of Clients

For data mining, deanimation is a technique by which the anonymous data is matched to other data sources to be re-indexed. [7] [12] As well as graphical analysis of transactions (which may reveal connections between Bitcoin's pseudo-addresses) [7] [12], there may be an attack that may alter the user's pseudonym with its IP address. [13] If the peer connection uses "tor" , Is attacked in such a way that peer connections are disconnected from the Tor network, and then for the next transaction, IP addresses to use force. Such attacks may also mislead Bitcoin's peer address and anti-dose protection transmission methods. Costs less than € 1500 per month for attacks on a complete Bitcoin network.

Payment verification

Each miner can determine whether there is no transaction in a block. [14] The number of transactions in a single block is not the same as the higher level of computational power required to solve the block.

After receiving a new transaction information, a node must verify it; Especially the transaction has to be sure that no input has been spent before. Then, the nodes needed to access the blockchain are also to be checked. If a user can not rely on the neighbors of his network, then he must keep a full copy of the blockchain, as any input can be verified.

As the white paper in Nakamatu is written - it is possible to verify the Bitcoin payment (which is called simplified payment verification) without a full network node. In this process, a user's longest chain block headers require only a copy - to find network nodes until they get the longest chain. The mercklays branch is then connected to the fixed block by linking it. In relation to linking the transaction in the chain, it is understood that the network node has accepted it, and the added blocks are further guaranteed.

Blockchain Data

Any digital file can be stored in blockacain - the size of the transaction is as large as the size of the transaction. [15] Various types of content - Child pornography from URL, ASCII art image of Ben Bernankeck, Content of WikiLeaks cable, Bitcoin miners Prayer and white of the original bitcoin may be rooted in it. [16]

Criminal activity

The use of Bitcoin for criminals has attracted the attention of the regulator, lawmaker and enforcement agencies and the media. [17] In this matter, the FBI has created an intelligence assessment, the SEC has issued a warning message about the investment process using virtual currency and the US Senate in November 2013 A hearing was held on the currency Law. [18]

Several news organizations have claimed that the increase in the popularity of Bitcoin has also increased the possibility of purchasing illegal goods. [19] [20] In 2014, researchers from the University of Kentucky found strong evidence that "computer programming encouraged Illegal activities increase attraction of Bitcoin, they are limited in the use of Bitcoin for political and investment purposes Unyamatrara found support. "[1]

Black market

According to a CmU researcher, in 2012, 4.5% to 9% of London's London-based drug trade operates on a single web drug market. Black marketing sites have complaints of child pornography, mercenary murders and arms bits for sale. Because the sites are anonymous and lacking central control in this market, it becomes difficult to know whether these services are really real or difficult to take bits. [22]

Various authorities have blocked blackboards of some deep web. In 2013, the US law enforcement agency closed the Silk Road - which resulted in a reduced price for bitcoin. [23] [24] [25] In 2015, the founder of the site was sentenced to life imprisonment. But alternate sites were available in a while, because in the first half of 2014 the Australian Broadcasting Corporation reported that the closure of the Silk Road has made little impact on the online drug trade of Australians, but the amount of drug sales has increased. In early 2014, Dutch authorities closed the online market of illegal goods, Utopia and confiscated 900 bits. At the end of 2014, at the end of a joint police campaign, the authorities of Europe and America confiscated many Bitcoins and closed 400 dip web sites, including the illegal goods market, Silk Road 2.0. Several such criminals were sentenced due to such activities of law enforcement agencies. In December 2014, Charlie Sharm was imprisoned for two years for indirect help to send 1 million dollars to the drug trading site Silk Road. In February 2015, Silk Road founder Ross Woolbrich was convicted of drug trading - he was sentenced to life imprisonment. [26]

Some black marketers may betray bittacense from customers. Bitcoin identified a site called Community Ship Marketplace as a fraud. After the site has been accused of stealing Bitcoin, the way to lift Bitcoin is blocked and closed. In a separate incident, in the beginning of 2014, betacquan escrow accounts were hacked due to ownership of various black market patrons. [27]

According to a UK-based charity, the Internet Watch Foundation reports, Bitcoin is used in child pornography business, about 200 websites accept Bitcoin as a payment medium. But Bitcoin is not the only means of online child pornography. In this regard, O'Reouling, chief of the cyber crime unit of Europeol, said, "EuCash and Passhecord ... are also used to pay for such materials." However, the Internet Watch Foundation lists about 30 sites that only accept Bitcoin. Some of these sites have been closed, including a Crowdfunding website of the Deep Web site that collects money for new child porn

Bitcoin Networks...