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Learning Bitcoin

Learning Bitcoin

By : Caetano
3 (3)
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Learning Bitcoin

Learning Bitcoin

3 (3)
By: Caetano

Overview of this book

The financial crisis of 2008 raised attention to the need for transparency and accountability in the financial world. As banks and governments were scrambling to stay solvent while seeking a sustainable plan, a powerfully new and resilient technology emerged. Bitcoin, built on a fundamentally new technology called “The Blockchain,” offered the promise of a new financial system where transactions are sent directly between two parties without the need for central control. Bitcoin exists as an open and transparent financial system without banks, governments, or corporate support. Simply put, Bitcoin is “programmable money” that has the potential to change the world on the same scale as the Internet itself. This book arms you with immense knowledge of Bitcoin and helps you implement the technology in your money matters, enabling secure transactions. We first walk through the fundamentals of Bitcoin, illustrate how the technology works, and exemplify how to interact with this powerful and new financial technology. You will learn how to set up your online Bitcoin wallet, indulge in buying and selling of bitcoins, and manage their storage. We then get to grips with the most powerful algorithm of all times: the Blockchain, and learn how crypto-currencies can reduce the risk of fraud for e-commerce merchants and consumers. With a solid base of Blockchain, you will write and execute your own custom transactions. Most importantly, you will be able to protect and secure your Bitcoin with the help of effective solutions provided in the book. Packed with plenty of screenshots, Learning Bitcoin is a simple and painless guide to working with Bitcoin.
Table of Contents (10 chapters)
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9
Index

Primecoin


Introduced in July 2013, Primecoin uses an entirely different method for mining coins. Proof-of-work is presented to the network in the form of prime numbers. Claiming to be the first cryptocurrency designed with scientific computing as its work, the miners compete for primecoins by searching for very large prime numbers.

There is no predefined limit to the number of primecoins, just the natural distribution based on the set of prime numbers. The scarcity of primecoins is set by the distribution of prime numbers within a given set. While each confirmed Bitcoin block contains a nonce and hash solution, each Primecoin block contains a prime number set as the proof-of-work.

Another significant difference between Primecoin and Bitcoin is the mechanism that governs the difficulty level. Rather than using an average block rate calculated after every 2,016 blocks, Primecoin adjusts the difficulty to search for prime number sets after each block with a target rate of one block a minute....

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