Bitcoins Operation for Making Money

The bitcoin  a purely technical level is a cryptocurrency based on a system peer to peer who “would allow payments to be sent from one person to another without going through a financial institution 1” but not stop to this as there are also elements to prevent the cd. “Double expenditure” that is, the event in which the sum of the disbursements exceeds that of the balance. But these are not the only technical elements to be known in order to reach a full understanding of the phenomenon. Bitcoin and cryptocurrencies in recent years are at the center of an ever-increasing turnover, sometimes illegal, but an exact location of the phenomenon has not yet been reached at a legal level, which presents features of absolute novelty compared to the concept of currency.

The novelties brought by cryptocurrencies range from the way in which they are enacted, to the difficulty of tracing the identities of those who use them up to the totally new mechanism in operations.

This has had an important impact, and doctrine and jurisprudence have an uncertain trend on the actual legal qualification to be given, provided that these can be made to fall within an existing legal category.

One of the main objectives is to free Internet transactions from the existence of a third party.

The operations

The operations take place between the electronic wallets (or wallets), where the bitcoins are deposited. The different portfolios are identified exclusively by their address, which is the only known data while the identity of the owner remains unknown. In the event that Tizio wants to buy a good from Caio and pay the amount due in bitcoin, what will happen will be this?

A sum will be sent to Caius; to this sum sent, a digital signature certifying its origin will be sent via the private cryptographic key; at this point the digital signature will be sent by public key from Caius, which certifies receipt; the rest of the network, verifying the correspondence of the keys, validates the transaction

To add an operation to the Blockchain, the consent of all the other nodes that deal with the validation is needed. The validation process covers all operations and takes place in the following ways. Each operation, before being validated, is sent via broadcast to the nodes that deal with the validation. The nodes involved will carry out two checks, one on the available amount of the person who sends the sum in order to avoid double spending and another on the digital signature to verify the identity between who has the bitcoin and who performs the operation. Once these checks have been made, they will be added to a block of blockchain 2.

The Blockchain

The blockchain consists of a chain in which all transactions and related information are collected (which are grouped into different blocks (hence the name blockchain, block chain). It extends with every valid transaction and is retractable backwards until the Genesis Block. 

The operations can be of various types, there is the Coinbase type, which concerns the creation of bitcoins, and the Pay-to-PubKey Hash, which transfers the possession of these between one user and another. 

The transaction is irreversible and public, that is to say that the sum paid cannot be refunded and that the transaction is known to all participants in the network. So use es.bitcoin-banker.io for maximum profit.

Mining

The mining has two functions: to validate the operations that will be added in the existing blocks and create new ones. And it is precisely the creation of new blocks, which takes place through the resolution of algorithms that leads to the distribution of “new” bitcoins as a reward for this calculation. The operations, once confirmed, are added to a block which however is not yet part of the blockchain. To get to the addition there is also a need for a proof of work which proves that the greatest possible expenditure of energy was behind the resolution of the algorithm. And it is precisely after this step that the miner, once given the proof of work, will receive bitcoins as a reward for his work.