1. Scientific value
In the field of science, bitcoin innovation is very important to solve the long-standing problem of Byzantine generals. Satoshi Nakamoto solved the dilemma of digital double expenditure through self-organization and time recording. Blockchain, a * * * shared public ledger, is maintained by peer-to-peer network nodes that populate the bitcoin network. Earn bitcoin through cloud mining!
2. Technical value
Because Bitcoin is distributed through a distributed peer-to-peer network, there is no central server in the Bitcoin protocol. Like BitTorrent, Bitcoin is subject to censorship. This aspect of Bitcoin is crucial, because it means that the use of Bitcoin is not bound by the approval, opinions or actions of any external organization. Bitcoin has become an irreversible subversive technology.
3. Social value
The social significance of Bitcoin, an innovative payment and transaction method, is that it eliminates the cost of trust. Distributed books and distributed networks mean that there is no need to trust a single entity in order for the Bitcoin protocol to work properly. Every bitcoin user owns and controls his own money and is fully responsible for its safety and use. This trust cost reduces the dimension of Bitcoin and eliminates the risk of having to trust external institutions. In fact, with the passage of time, the network effect of bitcoin decentralization will eliminate the rights of local central management institutions.
4. Value symbol
Although bitcoin can be copied many times, it can only be used once. This design function can be verified by copying the existing bitcoin wallet to another computer. The same bitcoin will exist in two physical locations, but only the first payment transaction can be successful. The network will admit that the second attempt costs the same bitcoin as a double fee and reject it. This is a key innovation that distinguishes Bitcoin from all previous attempts to create digital currency.
5. The design value of Bitcoin
Through the solution based on double expenditure, the functions designed by Bitcoin provide users with additional value:
1. Payment method (currency) 2. Wealth storage (secure storage and transmission) 3. Distributed public * * * transaction ledger (blockchain) 4. Contract mechanism
6. The value of security
Bitcoin uses public-private key pairs to ensure transactions. A bitcoin address is a public key generated from a private key stored in a user's wallet. Bitcoin transactions with the address generated by the wallet are signed with the public key of the address and can only be "unlocked" with the matching private key. So bitcoin transactions are anti-theft. The basic mechanism to prevent repeated consumption ensures that bitcoin will not be forged.
7. The value of development
Bitcoin is a free open source software provided under the license of MIT. In addition, the agreement also encourages community contribution and collaboration through the development of open source project model.
Collaborative development of publicly available source code is considered preferable to closed source code developed by teams. Errors and security patches are quickly identified and fixed, and they work 24 hours a day, while the advantages in quantity and the diversity of skills can improve productivity.
8. Network value
Bitcoin network is a decentralized peer-to-peer network. The wider the peer nodes are distributed, the more dispersed the network is. The more diverse the nodes are, the wider the range of performance in the network, so they are more flexible and secure. Bitcoin protocol aims to seek * * * knowledge between nodes, and greater dispersion means a healthier and stronger network. All these factors have contributed to a more valuable blockchain.
9. Value transfer and storage
Most countries' currencies can be converted into bitcoin and stored or transmitted through the bitcoin network. As the amount increases, the benefits of using Bitcoin for storage/transmission also increase.
The stored bitcoin can be protected in different ways, including passwords, biometric reading technology and multi-signature transactions. Although password theft or human error may still lead to the loss of storing bitcoin, the risk is far lower than physical assets such as paper money or gold bars. Transmitting bitcoin through payment network is cheaper and faster than transmitting the equivalent amount through traditional channels, and it is simpler and safer than transmitting the equivalent amount of gold bars.
10. Contract and application value
The Bitcoin contract was written by Satoshi Nakamoto, although the agreement in this respect is rarely used so far. The contract extends the multi-signature function of Bitcoin, allowing two or more parties to participate in the protocol implemented outside the Bitcoin network. Such as option contracts, wills, or even simple binary bets, such as the result of a football match. In the future, this function of Bitcoin will be better understood, used more frequently and added more value to the protocol.