Transactions with bitcoins and why you will do it soon
The digital universe has really revolutionized society as a whole. If new conduits have surfaced, new tools have also emerged to replace or add functions to the more traditional ones. With this, information, distance and speed have gained a new dimension. Even money has gone through conceptual changes and promises to keep evolving. In this sense, it is important to talk about bitcoin (BTC), a crypto-addicted one that has been successful worldwide. Do you know this digital technology? Read our post and understand what it is and how to make transactions with bitcoins!
Concepts related to bitcoin
To understand how transactions are done with bitcoins, it is necessary to understand some concepts - such as address, wallet and miners, for example. Look!
Address
It’s a string of 26 to 35 alphanumeric characters – that’s, composed of letters and numbers. This string, or string, is used to identify the sending of a payment in bitcoins. Example address: 14rruWSPHSCCNzCGyCqreAVp1rfyCZKt9B. Bitcoin uses the encryption of a public key to validate the authorship of a network transaction through the digital signature. The public key is produced from the user's private key, and the address, in turn, is generated from the public key.
Wallet This is software used by the user in order to register receive addresses controlled by one or more private keys of the user. The wallet creates, signs and transmits transactions with bitcoins to the network. There are wallets like web, mobile, desktop and also for hardware applications.
Bitcoins transactions
It’s a data structure that represents the transfer of a certain value from a specific source to a specific destination. The funds of origin of the value are called inputs. The value destination is called output.
Block Transactions with bitcoins are grouped into blocks. One block is always connected to another block and tells you which hash – that’s, the code calculated and approved by the bitcoins network. A chain of blocks is thus formed. By reading all the blocks, you can be aware of all transactions with bitcoins made.
Miner
The miners assemble the blocks of bitcoins. They assemble the transactions with bitcoins scattered across the network to form a block. Assemble the block, you must calculate the ideal hash. It calculates different
hashes until you find the one that bitcoin accepts. For this, it needs a special die, the nonce. Both the nonce and the hash are just a number. Just to give an example, let's say that the hash can’t be greater than 6 (maximum value). When the miner finds a data (nonce) that causes the hash to result in 4, it can already propagate the value in the network.
Rate of transaction (fee)
This is a quantity of bitcoins added to the transaction as a way to reward the miner who succeeds in mining the block of the respective transaction. This quantity is defined by the user or by the software, varying according to the priority required by the user to confirm the transaction. Generally, it’s customary to pay 0.0001 bitcoins of fee for every 1 kilobyte in a normal transaction, however, now the network is congested and are charging 0.001 bitcoins for a transaction.
Transactions with bitcoins have no balance
Unlike transactions with paper money, transactions with bitcoins don’t present balance. Wallets hold no value and all bitcoins remain in transactions. If the user receives 4 BTC coins from one person, receives another 3 from another user and wants to use 6 coins, the wallet identifies the first transactions (7 bitcoins in total) as input. The remaining bitcoin corresponds to the change and is sent by the software back to the user who received the coins.
The time of transactions with bitcoins
Generally, the bitcoins blocks take 10 minutes to find the nonces. If miners find the nonce very quickly, the maximum hash value (which in the example above is 6) will be reduced to make the job more difficult. On the other hand, if the miners are taking too long, the maximum value is increased to make it easier. This means that everything adjusts proportionally, being calculated by the network itself. So that the transaction doesn’t last much longer, there is no balance. In addition, only six crypto-coins per hour can be generated across the entire network.
Multi-Signed Wallets
Multi-sig wallets, which start with the number 3 (ex. 32v7uX5nLhZAidxMvnzq2XfAkhZNnJLxCt), can only be moved with more than one key. Example, an address with 3 keys needs 2 to be moved, so you can create a kind of joint bitcoin account, which needs the authorization of both to move.
The security of the blockchain
The blockchain (block chain) is the system of registries that gives total security to the transactions with bitcoins. It’s about the security of the blockchain the blockchain (block chain) is the system of registries that gives total security to the transactions with bitcoins. It’s an accounting system that validates and distributes the record of a transaction in all parts where the software is operating. It’s the process already described in which a hash is approved by a block that is connected to another immediately preceding. Blockchain can be said to be the Reason Book of transactions with bitcoins, recording them all
chronologically, after they are validated by the hash. It’s worth emphasizing that this registry is unique, immutable and shared by the users of a specific system.
How to use BTC
In addition to the stock market, BTC can be used in many different ways. It’s more practical than credit card and safer than traditional banknotes and coins. Certain hotels already accept payments in bitcoins. On the internet, many products can be purchased with the use of bitcoins. There are also travel agencies that only work with bitcoins such as BTCTrip.
You can also: • register domains; • import some products; • attending college (Draper University); • perform surgeries; • buy real estate; • buy and sell the crypto-coins;