"Nodejs Development Crypto Currency": Crypto currency is money

This is an introductory article on cryptocurrency, a supplement to the Getting Started Guide section of the Nodejs development crypto currency, mainly for small partners who have not been in touch with Bitcoin or cryptocurrency, and the next content will be related to cryptocurrency.

Objective

"Cryptocurrency is Money" sounds "idiotic". Think of the meaning behind, the implication is that "cryptocurrency may not be a currency", it is worth pondering. In fact, among the many friends I approached, I thought the latter was more. including myself, it is also after a period of inquiry to determine this conclusion.

Inertia exists not only in the physical world, but also in the human cognitive world. The more experienced the human experience, the greater the resistance to understanding new things. Especially when a new thing appears in front of it, its name is nothing special, technology itself is not what novelty, said it is subversive innovation, is about to change the future, really confusing.

Here, for those who have not touched the cryptocurrency, try to write a plain, simple introductory article in the most straightforward language, a bridge of human thought and acceptance of the cryptocurrency. If after reading, you have a little excitement, want to continue to explore, this article even success.

This article will cover some of the concepts that beginners have encountered at the outset, such as: What is cryptocurrency? What is the difference between the various digital coins that we use every day? What are the advantages, and why are they so touted? Wait a minute. Basically, all of my programmers are the most popular understanding.

The most concise history of crypto currency

加密货币First is a 数字货币 . Long before the advent of bitcoin, "digital currency", "virtual currency", "electronic money" and so on have appeared, especially in the "virtual currency", the most simple understanding is "currency digitization or virtualization." Here the currency is the reality of the Fiat, such as the dollar, the renminbi, digital is not to take money, directly through the net silver, a treasure and so on can be paid.

Later, in the game platform, the concept of game currency was first proposed, directly exchanged through Fiat, then, the player uses it to buy various equipment. Then, many of the sites also launched a variety of coins, through the game thinking, to attract users. These so-called digital currencies, the most intuitive explanation, in fact, is "tokens."

In recent years, Bitcoin has emerged as a real digital currency that can be called "currency", but it is hard to distinguish it from other digital currencies. The reason is very simple, on the one hand, do not accept the inertia is very strong: most people have a wealth of experience in digital currency, the vast number of "digital currency", but it is different?

On the other hand, the acceptance of the resistance is very large: understand the crypto-currency need to know what is the point-to-peer network, know that there is encryption and decryption technology so, it is best to understand the point of database technology, each is not ordinary people have.

Even if these technologies are available, it is not possible to realize the functions and features of the Fiat like the one in which a few human brains are opened. So, in people's minds, all the "digital currency" is not the real currency, but just "tokens", "cryptocurrency is money" is rather confusing, it is difficult to accept.

What is crypto currency?

I put this problem, through a certain degree of search, very wonderful is that the direct answer to this question is actually a MLM currency (the cryptocurrency as the core product, through the distribution of crypto currency), of course, the content is not directly answered, just talk and Fiat (like the dollar, The difference between renminbi and other banknotes issued by a bank or a state. Clearly, it is necessary to define this concept.

What we call "cryptocurrency", English is "Cryptocurrency", also some people in the encyclopedia translated into "password currency", can be interpreted as a kind of encryption electronic money (or digital currency), the typical example is bitcoin. So, we might as well use Bitcoin to define the crypto currency:

Cryptocurrency is a kind of encrypted electronic currency which is based on point-to-point network (peer-network), has no distribution, and has a basic fixed amount.

Interpretation :

(1) peer network : This is not a new thing, the earliest we use the bit download, is based on peer-to network, and now a lot of download tools are supported. Its advantage is "go to the center", that is no central server, to download the files are on the user's own computer, and download faster;

(2) No issuer : That is, not the company, the bank or the state control issue. To do this, while preventing inflation and other factors, need to be implemented in programming with very complex mechanisms and rules.

(3) The total amount is basically fixed : This is a strategy to guarantee the value of the cryptocurrency, "the thing with dilute is expensive", anything without an upper limit will lose its appeal. This is different from the points used by many network communities, such as: A, C, Q, s currency, etc.

(4) Encryption : This is said to encrypt, not the user to use the input user name, password that simple permission control, but for each of the generated electronic money itself transactions and transmission of encryption. Cryptography itself is complex, but using it is not complicated, and knowing that is enough.

(5) Electronic currency: That is, the cryptocurrency is a currency, like fiat, can be freely traded, but is an electronic (digital) Form only. So what is a, q, or something other than money? No, this is explained in detail below.

Crypto currency is Money

加密货币就是货币, this is a near "nonsense" of the wonderful conclusion, when we understand the above definition of history and concept, it is easy to understand more. But if you're not a technician, it's a bit difficult to understand, so now let's compare Fiat and find something in common with "money."

(1) Quantitative : Fiat is usually pegged to the gold behind it or to the so-called GDP, which is relatively fixed (the excess issue in the downturn is not considered). Cryptocurrency can be counted as an absolute fixed amount, or a small amount of additional shares (which can compensate for some lost coins) and prevent inflation.

However, some websites provide a number of digital coins, there is no fixed number, generally as a token of Fiat, the number of users purchased, the total amount.

(2) encryption : Fiat is anti-counterfeiting, it should be said that the highest level of physical security technology is on the Fiat (however, can still forge, counterfeit money is not uncommon), through the money-checking machine and other special equipment can be verified by the banknote. Crypto-currency encryption technology is equivalent to anti-counterfeiting technology, each transaction will be strictly encrypted, experts explained that the decoding of cryptocurrency is theoretically feasible, the cost of absolutely impossible things, it is difficult to forge, at the same time, the verification mechanism is far better than Fiat, simple, fast and accurate.

Then, the individual website digital currency, is not so, just a bunch of numbers, the administrator can modify, freeze, their encryption is only the user's permission to log in control.

(3) Trading : Fiat, also known as currency, is called Suphung, is can be exchanged with any merchant, to buy anything, this is the most basic property of money. Crypto currency, too, you can pay to either party, the cryptocurrency will arrive safely without fear of being hijacked, cracked, or worried about the value will be reduced or evaporated.

However, some sites of digital currency, is absolutely no such function, can only be traded inside the site, leaving the site without any value. Some shopping malls can use points to buy, seemingly can be traded between many sites, in fact, is still their own site. Of course, if the site with a third party signed an agreement, the number of its digital value fiat, it can also be traded with other sites, but the nature of the transaction is still fiat transaction. However, even so, this agreement, no one is expected to sign, at least, I will not, because there is no supervision, control, there is no guarantee of absolute trust.

Crypto currency?

From the above discussion, we can understand the crypto currency is going on, but may still doubt the usefulness of crypto currency, reliable? This is the first question many people will ask. The conclusion is of course reliable, but it is necessary to use many techniques and theories to explain why. Fortunately, these technologies and theories are now mature technologies. As long as you think they are reliable, then the following explanation is very good understanding, otherwise, want to persuade yourself, said the cryptocurrency is more reliable than some of the digital currency, or difficult.

(1) to be centralized

This is a good understanding, first of all to understand what is "centrality". At present, we browse through the browser of the major sites, are centralized, there must be one or more servers, we browse the contents of the organized, for us to browse. If the server is broken, we will not be able to access it. The central thing, everything is controlled by an organization or company.

Go to the center, is based on peer-network, not a machine as a centralized server function, the network of every computer is equal, any one drop line, extension machine, will not affect the entire network continue to run. If everyone trusts this network, the network will never die, and the current Bitcoin network is basically the case. Specific to see "a sophisticated network to achieve" an article of the source-sharing.

This is the trading channel for crypto currency . is the Network Foundation, can realize the barrier-free trade. As long as you can access the Internet, any time, any place, you can intervene in the trading network, to pay the cryptocurrency to any corner of the world.

(2) encryption and decryption

We have a free-passage route or fairway, but are these lanes safe? Is there a robber? have been hijacked, cracked, how to do? What's more, we have to pass a private residence (personal or organizational computer), perhaps a hacker is waiting for the attack.

This requires the use of strict encryption and decryption techniques. Fortunately, encryption and decryption technology, is also widely used in the network world of technology, has been mature use for so many years. Theoretically speaking, the encrypted currency of the transaction address, each transaction is a part of the encryption and decryption, crack a meaningless, all the crack is quite difficult, coupled with many peer network nodes, crack a node also has no value, so the security level of the encryption currency should be the highest at present.

This is a security guarantee for cryptocurrency . With this, we can safely pay the cryptocurrency, without fear of loss, theft, the buyer will have to pay the basis of the transaction power. About the encryption and decryption technology, you can read the "Use of encryption and decryption technology in Nodejs", as well as the development practice of "three map to give you a full grasp of encryption and decryption technology."

(3) Block chain

We can pay, but another worry, how to ensure that the seller must have received or must not receive? In case, the seller to pay the bill, anyway, said no money to do? This trust, who will guarantee?

The answer is, blockchain. This is the original cryptocurrency, the innovative invention of Bitcoin, but the use of technology is simple database technology (of course, you can also use file storage, but most should be a database) only. The essence of blockchain is the transaction data stored in the database, the structure of which is only the hash value of the previous chunk header is recorded in each record, so it can be traced forward until the first creation block.

More importantly, this database, distributed storage in the peer-to network, each node will be saved a copy, each person can publicly access to view the transaction history. In other words, both sides of the transaction can not only see the results of the transaction, the entire network node can be seen, open, transparent, traceable, so you have to believe.

This is the credit guarantee of the crypto currency . Any economic behavior, without trust as a basis, is impossible to achieve. Crypto currency This originality opens the door to an open, transparent, traceable credit system, with companies, organizations and individuals obsessed with crypto-currencies because of the limitless possibilities behind this innovative technology. Behind, I will continue to share the realization of the billion-book blockchain, "Mysterious blockchain" (to be completed)

(4) Consensus mechanism

Is it enough to have fairway, safety, and credibility? A key problem is that so many nodes maintain an identical database, in the end, the database that the node writes to is accepted, how does it work in an orderly way? Also, the issue of crypto currency is a fixed number, how to ensure that a certain node does not mischievous themselves to increase the number of it? In front of the interests, what people, what things can appear in Austria.

The solution to this problem is the so-called "consensus mechanism", which is also the algorithm mechanism, including the work Proof mechanism (POW), the proof of equity mechanism (POS), the authorization of the equity Certificate mechanism (DPOS), etc., similar to the discussion of issues, collective decision-making principles and rules. This is where the cryptocurrency needs to focus on coding, and it is also a difficult point in crypto currency development.

In particular, dpos mechanism, is basically the shareholder voting mechanism of joint-stock companies, billion book is the use of this algorithm mechanism. Later, I will also continue to share relevant articles, including the "Implementation of the DPOS mechanism" (pending completion).

This is the running rule for crypto currency . It is the place where the former general technology is fused and innovated, and without understanding this part, there is no way to talk about crypto currency development.

Finally, the technology is not independent, but mutually supportive, through the consensus mechanism to become a whole, the realization of the crypto currency is absolutely not issued by an institution, but also to ensure the absolute security of payments and transactions.

Summarize

Imagine a highly autonomous network that would revolutionize our future (future trends). What can we do with crypto currency (application scenario)? If you enter the industry to invest or start a business, what needs attention (risk and method tips)? These questions, see the next article, "The common goal of the devil and the Angels."

Link

This series of articles is updated immediately, to keep up to date, please follow the link below

Source Address: Https://github.com/imfly/bitcoin-on-nodejs

The first blockchain club in this article: http://chainclub.org

Reference

• Billion book white Paper v1.0 http://ebookchain.org/ebookchain.pdf
• Billion Book official website: http://ebookchain.org
• A sophisticated peer-network implementation
• Using encryption and decryption techniques in Nodejs
• Three images to give you a complete grasp of encryption and decryption technology
• Peer Network

"Nodejs Development Crypto Currency": Crypto currency is money