How Bitcoin works? A simple introduction.

  •        0
  

We aggregate and tag open source projects. We have collections of more than one million projects. Check out the projects section.



Bitcoin is an open source digital currency which could be transferred in a P2P payment network. It is decentralized and it is not controlled by any central authority or banks. It is transferred from person to person and no authority will be aware of your transaction. Its quite different from PayPal or Banks.

How PayPal or Banks operate:
Banks deal with real currency whereas PayPal uses digital currency but still work more alike. They act as central authority maintaining ledger or transaction details of both sender and receiver. When you send a payment to a receiver, the amount will be debited from yours and credit in the receivers account. The balance amount is the value you own at the end of the day. It is the model which we are well aware of.

How Bitcoin works:
Bitcoin is not controlled by central authority. It is just a digital file. Every system in the Bitcoin network will maintain the transaction details of all the users. It will be a public ledger. Bitcoin is a value, where it will not maintain any balance of a particular account, whereas it will maintain list of transactions and the cumulative credit transaction minus debit transactions will be your balance.

Bitcoin transaction:
You need to install Bitcoin wallet software which will help you to generate Bitcoin address. It is nothing but a public key and your friends could transfer money to this address. The entire concept is based on Cryptography. Consider Alice is sending money to Bob, the digital signature of the transaction message will be created using Alice private key and it will send to the Bitcoin network. Each node in the network will authenticate the transaction and update its ledger.

How Bitcoin is generated:
You could purchase from Bitcoin exchange or you could exchange (buy or sell) from this exchange near you. If you receive Bitcoins from someone as a return for your service then you could transact it to these exchanges.

Bitcoin miner:
You could be part of the Bitcoin network and by solving the bitcoin transaction, you could earn some bitcoins as reward. There are Bitcoin mining software and you could use it to participate in the network.

Bitcoin price is volatile, it may increase or decrease over a short period of time. It is not recommended to keep the bitcoins for long term. If you receive any coins just encash it at the earliest. The transactions are irreversible, so be sure to whom you are transferring the funds. Since there is no central authority involved, you cannot claim anything. It can only be refunded by the person receiving the funds.

Bitcoin is very different than PayPal or Banks. It is growing and many have started using it.
Reference:
http://bitcoin.org/
http://www.bitcoinmining.com/
Open source Bitcoin mining application
Open source Bitcoin wallet


   

We publish blog post about open source products. If you are interested in sharing knowledge about open source products, please visit write for us




Related Articles

ONLYOFFICE Document Server, an online office app for Nextcloud and ownCloud

  • office office-suite word spreadsheet

ONLYOFFICE Document Server is a free collaborative online office suite including viewers and editors for texts, spreadsheets and presentations, fully compatible with Office Open XML formats (.docx, .xlsx, .pptx). This article provides you the overview of ONLYOFFICE Document Server, its features, installation and integration with Nextcloud and ownCloud.

Read More


Exonum Blockchain Framework by the Bitfury Group

  • blockchain bitcoin hyperledger blockchain-framework

Exonum is an extensible open source blockchain framework for building private blockchains which offers outstanding performance, data security, as well as fault tolerance. The framework does not include any business logic, instead, you can develop and add the services that meet your specific needs. Exonum can be used to build various solutions from a document registry to a DevOps facilitation system.

Read More


Europe Copyright reform may affect Open Source Ecosystem

  • copyright europe save-code-share

Europe is planning to bring in new copyright law, which would require code sharing sites to monitor copyright content to avoid potential copyright infringement. The proposed Article 13 of the EU Copyright Directive targets every online service that allows its users to upload and share content with each other, including code hosting platforms.

Read More


An Introduction to the UnQLite Embedded NoSQL Database Engine

  • database nosql embedded key-value-store

UnQLite is an embedded NoSQL database engine. It's a standard Key/Value store similar to the more popular Berkeley DB and a document-store database similar to MongoDB with a built-in scripting language called Jx9 that looks like Javascript. Unlike most other NoSQL databases, UnQLite does not have a separate server process. UnQLite reads and writes directly to ordinary disk files. A complete database with multiple collections is contained in a single disk file. The database file format is cross-platform, you can freely copy a database between 32-bit and 64-bit systems or between big-endian and little-endian architectures.

Read More


AbanteCart - Easy to use open source e-commerce platform, helps selling online

  • e-commerce ecommerce cart

AbanteCart is a free, open source shopping cart that was built by developers with a passion for free and accessible software. Founded in 2010 (launched in 2011), the platform is coded in PHP and supports MySQL. AbanteCart’s easy to use admin and basic layout management tool make this open source solution both easy to use and customizable, depending on the skills of the user. AbanteCart is very user-friendly, it is entirely possible for a user with little to no coding experience to set up and use this cart. If the user would be limited to the themes and features available in base AbanteCart, there is a marketplace where third-party extensions or plugins come to the rescue.

Read More



An introduction to web cache proxy server - nuster

  • web-cache proxy-server load-balancer

Nuster is a simple yet powerful web caching proxy server based on HAProxy. It is 100% compatible with HAProxy, and takes full advantage of the ACL functionality of HAProxy to provide fine-grained caching policy based on the content of request, response or server status. This article gives an overview of nuster - web cache proxy server, its installation and few examples of how to use it.

Read More


Univention Corporate Server - An open source identity management system

  • ucs identity-management-system

Univention Corporate Server is an open source identity management system, an IT infrastructure and device management solution and an extensible platform with a store-like App Center that includes tested third party applications and further UCS components: This is what Univention combines in their main product Univention Corporate Server, a Debian GNU/Linux based enterprise distribution. This article provides you the overview of Univention Corporate Server, its feature and installation.

Read More


Code Sponsor closing down on December 8 2017

  • code-sponsor news announcements

Code Sponsor helps by connecting sponsors with open source projects. Open source projects which are hosted in Github, will display advertisement in their Readme page. It works similar to Google adsense. Now code sponsor has announced to shut down their service.

Read More


How to get sponsors for your open source projects

  • money sponsors opensource

Open source projects are free to use but the developers should be economically happy so that they could give time and energy to the project. There are lot of projects which are good but not able to sustain in the long run. In this article we will discuss about how to get sponsors for open source projects.

Read More


LetsEncrypt certificate using ZeroSSL tools

  • ssl-certificate certificate security

Let’s Encrypt is a free, automated, and open Certificate Authority. It uses ACME protocol to validate your domain. If you have complete control over your domain, you can get a certificate for free. In order to provide secure access to your public network like HTTPS, LDAPS etc you need a certificate from a Certificate Authority. The cost of the certificate range from 10$ to 100$. If you want a wildcard certificate then it may cost more. The certificate is valid for one year and you need to pay and renew every year. Let's Encrypt comes for the rescue. You can create and renew certificate for few.

Read More


React Patent Clause Licensing issue. Is it something to worry?

  • react react-license facebook

React libraries from Facebook is one of the most used UI libraries. It is competitive to AngularJS. There are many open source UI components or frameworks available but mostly people narrow down to two choices Angular / React. Recently Facebook has updated React license and added a patent clause which makes companies to worry and rethink whether to use React or not.

Read More


LogicalDOC - Open Source DMS

  • dms document-management-system

LogicalDOC is both a document management and a collaboration system. The software is loaded with many functions and allows organizing, indexing, retrieving, controlling and distributing important business documents securely and safely for any organization and individual.

Read More


Why Elastic Search is gaining more popularity than Solr?

  • solr elastic-search search-engine

Solr and Elastic Search both are built on top of Lucene library. Both are compratively equal. Any new feature / enhancement which get introduced in Lucene, will also get added to Solr. But still Elastic Search which uses Lucene as it core gained more popularity than Solr in recent years.

Read More


SeoToaster: easy, fast and efficient open source CMS for top SEO performance

  • cms content-management-system seo ecommerce

SeoToaster is a free Open Source CMS & Ecommerce solution to build, manage and market websites optimized for for top search engine performance. As the name implies, Seo Toaster is to date the only content management system (CMS) to truly integrate SEO execution and web marketing automation technology in full compliance with the search engines industry’s best practices.

Read More


PrestaShop - A feature rich Open Source eCommerce solution

PrestaShop is an Open Source eCommerce Solution. It comes complete with over 310 features that have been carefully developed to assist business owners in increasing sales with virtually little effort. It is being used in more than 150,000 online stores.

Read More


Microweber CMS - An open source CMS with Ecommerce support

  • cms e-commerce microweber

To the user's satisfaction, there is a whole wide world of different CMS, all suitable for different needs. You can go for the giants like Wordpress or Joomla or pick one of the rising forces - Shopify, Squarespace or others. Microweber CMS fills a hole in the current technological ecosystem, aimed at delivering a light software that is perfect for all end-users lacking the technical knowledge needed for complicated website building.

Read More


Appserver.io – The First Multithreaded Application Server for PHP written in PHP

  • appserver application-server php

What if you could reliably run PHP without Nginx or Apache, but also without relying on its internal server? What if you could do async operations in PHP with true multi threading, fully taking advantage of multi core processors without hacks or a jungle of callbacks? What if you had drag and drop installation support for your PHAR packaged web apps in an environment identical to its production counterpart? Welcome to appserver.io – the worlds first open source application server for PHP.

Read More


Is it good time to switch from MySQL and choose some other database?

  • mysql mysql-alternative

Recently you might have seen many news that big organization like Redhat, Fedora, Wikipedia switched their database from MySQL. Now Google also going to join them. Why everyone want to move out of MySQL? It is once a popular and stable software. What is the reason behind and what are the possible alternatives.

Read More


Benefits in contributing to Open Source

  • open-source opensource contribute benifits

What the benefit will i get, if i contribute to Open Source? This is the frequently asked question by many people. I just want to pen down the benefits which i know and i hope you will agree with it.

Read More


Crowdfunding for Open Source Projects

  • free crowdfunding open-source

Open Source projects requires sponsors to fund their project. Few got good funding but few others are struggling to continue their project. A contributor, who does full time work in open source project requires funding to take care his needs. He has to be paid and he cannot do it for free. For those who don't get fund, check out this crowdfunding sites, these are exclusively for open source projects. Join these, get some fund and continue your dream.

Read More