What is Multisig Technology?

What is Multisig Technology?

We can think of Bitcoin like cash. If I have 100 Bitcoin, they’re all in a Bitcoin address, and that Bitcoin address has a corresponding private key. If I have that private key, I can spend that $100. But that is a lot of power to put in just one little string of letters and numbers. That if I lose, that if I have stolen from me, hacked, all the…

How Does Bitcoin Fit into Traditional Monetary Policy?

How Does Bitcoin Fit into Traditional Monetary Policy?

One of the main reasons why Bitcoin was created was a frustration with central banking and a frustration with the discretionary monetary policy that followed the financial crisis of 2008 and 2009. The Legal Tender Act was passed in 1862, and essentially said U.S dollars were legal tender, had to be accepted for all debts, public and private. After the Legal Tender Act was passed, someone could say “I don’t…

What is Bitcoin?

What is Bitcoin?

Bitcoin was originally proposed in a white paper written by an anonymous person or personsnamed Satoshi Nakamoto.The protocol of the actual software was released in 2009 and that’s when the bitcoins werefirst minted.Bitcoin is issued by a decentralized network.There are a series of protocols just like there are for email that tell computers howto interact with each other.It’s a program that runs like any other, and the network spits out…

What Is Bitcoin Mining?

What Is Bitcoin Mining?

The only way to send money electronically has always been to rely on a centralized intermediary,say someone like PayPal.And what PayPal does is it keeps track of the amount of money that I have in my account.Say I loaded it from my bank account or I got paid by another PayPal user, and thenPayPal lets me send the money I have.Won’t let me send more money than I ever have,…

What Does Bitcoin Need to Succeed as a Currency? [POLICYbrief]

What Does Bitcoin Need to Succeed as a Currency? [POLICYbrief]

Cryptocurrency is on the cutting edge of the divide between liberty and the State, betweena centralized coercive order and a decentralized voluntary one, and that divide here comesin that most important matter of money.Modern fiat currency, like the dollars in your pocket and bank accounts, is quintessentiallya creature of the State.In 1924, Georg Friedrich Knapp, the father of modern monetary theory, wrote, “The soulof currency is not in the material…

Probability in Bitcoin Mining: The Hashing Function

Probability in Bitcoin Mining: The Hashing Function

The only way to send money electronically has always been to rely on a centralized intermediary.Say, someone like PayPal.How do we randomly select a miner amongst all the miners on the network to play thisrole, to be kind of like PayPal for a short,ten-minute period?Well, it’s actually through hash functions.A hash function is a mathematical function.It’s rather like what you would have learned in grade school, just more complicated.You take…