Terms associated with cryptocurrency

Reposting since it is making some news again!

Bipin's Blogs

Double-Spending

There can be a possibility that the holder of the digital token can copy it and send it to a merchant while keeping the original to himself.

Double Spending is the risk that a digital currency can be spent twice.

However, Bitcoin has a mechanism based on transaction logs to verify the authenticity of each transaction and prevent double-spending.

Since the Blockchain comprise of blocks which contain each transaction history, double spending is avoided. This mechanism ensures that the party spending the bitcoins really owns them.

51% Attack

The rules by which Blockchains are governed by the miners. If a group of miners who control more than 50% of the network’s mining hashrate, or computing power collaborate, they can make unethical rules, reverse transactions, could double spend the coins. Such an attack is referred to as 51 % Attack.

Krypton and Shift, two blockchains based on ethereum, suffered 51% attacks in…

View original post 2 more words

Advertisements

The Hash

Reposting since it is making some news again!

Bipin's Blogs

A Hash is a cryptographic function which converts an input stream of words and letters into an encrypted output of fixed length.

Hash

Hashing involves processing the data from a block through a mathematical function, which results in an output (encrypted data) of a fixed length.

Using a fixed length output increases security, since it wont be possible to determine the length of input by simply looking at the length of the output.

For example, hashing the word “Bipins Blogs” or “Rum Pell Still Skin” will both produce an output of the same length.

Also, making even small changes to the input can completely change the output as can be seen from the above diagram.

If you like the blog content, kindly promote it 🙂

View original post

Bitcoin Mining and Blockchain – All you need to know

Reposting since it is making some news again!

Bipin's Blogs

Introduction

It indeed is always good to know the basics before learning the big lesson.

It is highly advisable that you read about Hash and some terms associated with cryptocurrency before you dive into the ocean of Bitcoin Mining and Blockchain.

What is a Block and Blockchain?

Blockchain

The Bitcoin network witnesses a great deal of transaction activity. Maintaining a record of these transactions helps users track what was paid to and by whom. The transactions executed during a given period of time are recorded into a file called a block.

Blocks are like record books which have the record of some or all of the most recent Bitcoin transactions that have not yet made it to any prior blocks. Blocks essentially are files where data pertaining to the Bitcoin network is permanently recorded. A block, thus, is immutable, meaning, once written, cannot be altered or removed.

Blockchain is…

View original post 802 more words

Bitcoins – All you need to know

Reposting since it is making some news again!

Bipin's Blogs

Introduction

Bitcoins have been making news for quite some time now. But the exponential surge that it has seen along with other crypto currencies in a relatively short span of time has surely grabbed (or even popped) many eyeballs.

Everyone has heard the word at least. If you have not, well, it’s a little embarrassing, given the relevance it has attained recently, but worry not, I will be providing you with all the basic essentials you need to know about Bitcoins.

Understanding the ambience

Let’s first understand a few things in the ambience of Bitcoin. It ain’t essential to know them but it is always good to know.

Type of currencies

Today, majorly three types of currencies rule the world. These include:

  • Fiat Currency: It is the physical money that you see. The currency is regulated by the government bodies and hence the government has the monopoly over…

View original post 1,926 more words

Terms associated with cryptocurrency

Double-Spending There can be a possibility that the holder of the digital token can copy it and send it to a merchant while keeping the original to himself. Double Spending is the risk that a digital currency can be spent twice. However, Bitcoin has a mechanism based on transaction logs to verify the authenticity of [...]

The Hash

A Hash is a cryptographic function which converts an input stream of words and letters into an encrypted output of fixed length. Hashing involves processing the data from a block through a mathematical function, which results in an output (encrypted data) of a fixed length. Using a fixed length output increases security, since it wont [...]

Bitcoins – All you need to know

Introduction Bitcoins have been making news for quite some time now. But the exponential surge that it has seen along with other crypto currencies in a relatively short span of time has surely grabbed (or even popped) many eyeballs. Everyone has heard the word at least. If you have not, well, it's a little embarrassing, [...]