How to realize the principle and process of de-centering in a virtual currency development

Blockchain Enthusiast (qq:53016353)

De-centering (decentralized)

The centrality is relative to the centrality. Here, there is no centralized bank to provide storage, trading and other functions. Instead, each node connected to the network provides the functionality described above.


In the bitcoin system, each node connected to the network stores a copy of the General ledger, which is why it is synchronized when using the wallet. And who will verify the validity of the transaction? By the mining decision. (In the early days, the ordinary purse could be mined, and now the wallet has been removed from this function.) ）


In the stellar system, the Stellard node can complete the general Ledger storage function, verify the validity of the transaction, and then give it to multiple independent authentication nodes. These verification nodes agree on the transaction by "consensus algorithm" and conclude that the transaction takes effect.


Address


Think of your bank card number.


In a de-centralized system, the address is used to record your IOU or balance.


Unlike the bank card number, the address is not allocated by the central system (the bank) but is randomly generated and is guaranteed not to be duplicated by mathematics (specifically cryptography).


Key (Secret key)


Think of your ID card.


And the real World ID card corresponding to multiple bank accounts, the key is usually generated together with the public key and the address, one after the other. The key to prove the address belongs to you. So how to prove it.


Signature (signature)


In the foreign credit card system, it is possible to use the signature to carry out the consumption. And in the domestic generally use the password to prove the card ownership.


So in a de-centralized system, how do you prove that a transaction generated by an address originated from you?


Similarly, by way of a cryptographic signature. Using your key to generate a signature, the network can use this signature to verify ownership without broadcasting the key.


So the importance of the key is self-evident. Once lost, the ownership of the corresponding address is lost, and once disclosed, it is tantamount to surrendering to the world.
So be sure to do the key backup work and security work.


Wallet (wallet)


In real life, the bank cards and identity cards are generally placed in the wallet (of course, it is recommended to store separately).


The same is true here, where the address and key are usually stored in the wallet for ease of use.


Wallets are divided into two types, local wallets and online wallets, in a storage way.


-Online Wallets:


Star official provides a wallet server for storing wallets. At this point you can look at it as a safe, with your address and key stored in it.


Like a bank, the wallet server only has the password (password) not to identify (and certainly no way to recognize). You get the code and you get the content.


All of your operations are done after opening the safe and then putting the safe back to the bank. The bank is only responsible for keeping the safe. As a result, stellar officials are unable to get your message.


Unlike a real vault, even if the official server is damaged and cannot be repaired, you still have your property if you still have the key. This may be the charm of the virtual currency.


-Local Wallets:


The local wallet is more like your purse. Depending on your personality, you can choose from a wide variety of local wallets.


The wallet can be divided into cold wallets (cool wallet) and heat wallets (hot wallet) according to the usage.


In life, the large amount of property and petty cash are generally used separately. Similarly, we have similar solutions for dealing with virtual currencies, namely, cold wallets and hot wallets. The cold purse is responsible for large property storage, and the hot wallet is used for payment and spare.


Cold wallets are best not to touch the Internet, which can be slightly inconvenient when used. But considering the safety of your property, it's worth it. Security and ease of use is always a difficult to reconcile the contradiction, in the protection of security, while improving the ease of use of personal cold wallet will be a good research direction.


The wallet can choose the official wallet, you can also choose other easy-to-use wallet, such as mobile phone wallet.