How often does a technology comes from Open world and changes our lifes forever. The Open Web did this to us years back and today we spent most our lives on the web. BitTorrent did it to all kinds of file sharing and here come BitCoin – The Open currency for the internet.
BitCoin was started in 2009, and it was until very recently that it started getting more adoption worldwide. Unlike most currencies, bitcoin does not rely on trusting any central issuer. Bitcoin uses a distributed database spread across nodes of a peer-to-peer network to journal transactions, and uses cryptography in order to provide basic security functions, such as ensuring that bitcoins can only be spent by the person who owns them, and never more than once.
BitCoin is purely P2p , that means that there is no central authority to issue new money or keep track of transactions. Instead, these tasks are managed collectively by the nodes of the network. So you get the same advantages that you see in BiTorrents, yet better:
- Bitcoins can be sent easily through the Internet, without having to trust middlemen.
- It can’t be stopped.
- Transactions are designed to be computationally prohibitive to reverse.
- Be safe from instability caused by fractional reserve banking and central banks. The limited inflation of the Bitcoin system’s money supply is distributed evenly (by CPU power) throughout the network, not monopolized by banks. No extra currency conversion fees.
Bitcoin relies on the transfer of amounts between public accounts using public key cryptography. All transactions are public and stored in a distributed database. To prevent double-spending, the network implements a distributed time server, using the idea of chained proofs of work. The whole history of transactions must be stored inside the database.
Here are few videos that can get you started:
Very Recently, A Google developer release a Java-based open source implementation of BitCoin and called it BitCoinJ.
BitcoinJ implements the native Bitcoin P2P protocol, which allows it to maintain a wallet and send and receive transactions without needing a local copy of the official implementation.
BitcoinJ implements the “simplified payment verification” mode so it stores what it needs in order to verify transactions with the aid of an untrusted peer node.
Andresen said Google is more likely to adopt Bitcoin if the company has an in-house implementation of the client software like BitcoinJ and that’s why we see a Big future in BitCoin And a second implementation of Bitcoin is very good for network diversity of apps, platforms and robustness.
Download C++ based BitCoin application: