The concept of bitcoin was first put forward by Satoshi Nakamoto on June 5438+065438+ 10/day, 2008, and was officially born on June 5438+1 0/3, 2009? . According to Satoshi Nakamoto's idea, open source software is designed and published, and a P2P network is built on this basis. Bitcoin is a virtual encrypted digital currency in the form of P2P. Point-to-point transmission means a decentralized payment system.

Unlike all currencies, bitcoin is not issued by a specific monetary institution, but is generated by a large number of calculations according to a specific algorithm. Bitcoin economy uses the distributed database composed of many nodes in the whole P2P network to confirm and record all transaction behaviors, and uses cryptography design to ensure the security of all links in currency circulation. The decentralized nature of P2P and the algorithm itself can ensure that the currency can not be manipulated artificially and create a large number of bitcoins.

The design based on cryptography can make bitcoin only transferred or paid by the real owner. This also ensures the anonymity of currency ownership and circulation transactions. The biggest difference between Bitcoin and other virtual currencies is that its total amount is very limited and extremely scarce.

Bitcoin network generates new bitcoins by "mining". The so-called "mining" is essentially to solve a complex mathematical problem with a computer to ensure the consistency of the distributed accounting system of Bitcoin network. Bitcoin network will automatically adjust the difficulty of mathematical problems, so that the whole network can get a qualified answer every 10 minute. Then the bitcoin network will generate a certain amount of bitcoin as a block reward to reward the person who gets the answer.