its users as a coherent system.” - Tanenbaum and Steen There are multiple heterogeneous components communicating with each other, but from a user’s point of view it is a single system. So like the internet
is no single point where the decision is made. Every node makes a decision for its own behaviour, and the resulting system behaviour is the aggregated response This means no central company or person owns the system, everyone can use it and make it run. This will make that difficult* for any person to take down the network or to corrupt. * But not impossible
of records, called blocks, which are linked using cryptography. It guarantees immutable data chain. Bitcoin uses blockchain, and stores the blockchain data across a network of computers, making them not only decentralised but also distributed. The blockchain is public in Bitcoin. In a way Blockchain provides an open decentralised database, of every transaction.
Bitcoin field traders are the worst but also necessary to create volume. People are buying houses, cars, foods with bitcoin but currently it is not enough to create a meaningful volume without cryptocurrency traders. A trader’s perspective : “get rich quick and then get out before the bubble bursts”
Bitcoin ecosystem can not handle it with the current situation • Slow, 7 transaction per second. • Limited amount of total bitcoin ◦ There can be only 21 million bitcoin in the ecosystem ◦ This will prevent inflation but also cause some dramatic changes when the time comes and miners can not mine or do not want to mine. The future is not clear. • New concept of money = possible scammers for end users • People are trying to solve the problems by new experimental solutions, like Lightning network to increase speed. There is no mainstream adoption.
problem with the current fiat money or fiat e-money? Why are we searching for a new* kind of money and economic model? * It is not new. The philosophy behind the economic model was already defined by Kropotkin. Mutual aid and voluntary association.
technically no. As long as you have computers or equivalent devices you can create a micro economy based on a cryptocurrency. Like a local network that you are able to create without any third-party institutions.
are experimenting, they also have central bank for their cryptocurrency. A cryptocurrency can be also centralised. But that will not be called Bitcoin. Ripple is already in the market and adopted by many of the banks. It is designed to be private and centralised cryptocurrency.
slides from Unsplash. They offer usage of the images on their platform free. • https://unsplash.com/photos/qaUMOLJwb48 • https://unsplash.com/photos/0G8M3LVT5Ds • The od, ledger picture : http://www.http://www.horniman.info/DOCUMNTS/HOWTO.HTM.com/captain-kenneth-g-smiths-wwii-logbook.html • Small minig farm: http://www.archajaindia.com/marketcap-ico/lost-and-found-bitcoin-ethereum-farm-mining/