Q & A on Bitcoin and Crypto-Currencies

Q & A on Bitcoin and Crypto-Currencies

Everyone seems to have questions regarding the Bitcoin phenomenon. *We begin by giving all the credit to this post to it’s originator and the original article. I still believe that the information is vital to Eliminate the Confusion that surrounds this topic. My thanks goes out to Scott Maxwell for his time and expertise. The original article was written in June of 2014. Many more issues have been resolved since that time. This is Part 2 of a 4 part series. If you missed out on part 1 you can find it here. What’s the big deal? Crypto-currencies have succeeded in answering two of the fundamental problems with moving money online: How do we stop someone from spending the same money twice? How do we avoid middle men? As it gets established, we’ll all benefit from a faster, more secure way to shop online. There are also social benefits. The micropayments, microloans and very low transaction fees. These will help poorer countries access online services much easier. How Can I prove I Own a Bitcoin? The public ledger proves ownership. But how do we know that an entry on the ledger is legitimate? Where the islanders knew everyone by sight bitcoin relies on digital signatures. These use the same cryptography that protects websites. It’s designed to prove you are who you say you are, and relies on the use of two passwords, one made public, one kept hidden. An entry on the ledger is legitimate only if it is digitally signed by the owner. How Do I Spend Bitcoins? You spend bitcoins by ‘signing’ a transaction and putting it...
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