Saturday, December 16, 2017

VIDEO Best Two Minute Technical Explanation of Bitcoin That I Have Seen



-RW

6 comments:

  1. First thought: Can I arbitrage the block update lag?

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  2. If you're talking about double spending your bitcoin, I don't think so. I'm still learning how it works, but I believe that your second (or third or fourth) transaction using the same "coins" would fail once the first transaction was confirmed. I'll readily admit that I may be misunderstanding your question and that I also have it wrong regardless. Great question, however.

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  3. So why is there a limit to the number of bitcoins that can be mined? Once we hit that limit, what incentive do miners have facilitate transactions?

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    Replies
    1. Good question. I wonder that too.

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    2. Transaction fees. Right now bitcoin miners are paid via a combination of new bitcoins and transaction fees. Once it hits the 21 million mark, they’ll be paid solely via transaction fees.

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  4. If 51% of the nodes are unreachable the transaction will be denied? If it is a majority of the reachable nodes then it becomes much easier to hack. Three reachable nodes, two of them are compromised. Of course there are middle grounds where it is a majority of reachable nodes over a large number like 1000, but that's still dependent on not having network issues.

    Yes, I understand that the 'conventional' banking system requires a functional network too but it's on the banks' shoulders and they have incentive to make it work for the risk is almost if not entirely theirs.

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