28 Jul '13, 10pm

Overcoming Moral and Visceral Objections to Bitcoin: Good and Bad Responses #bitcoin

Overcoming Moral and Visceral Objections to Bitcoin: Good and Bad Responses #bitcoin

The Bitcoin network maintains a database of all transactions that have taken place, and from these transactions it is possible to calculate how much money someone has. To prevent people from making transactions spending from other people’s accounts, public key cryptography is used. Public key cryptography lets you create a “key pair”, consisting of a public key and a private key, that lets you create “digital signatures” with your private key that anyone with the public key can verify, ensuring that the message was sent by the owner of the private key and was not tampered with. Bitcoin holders use their private keys to sign transactions spending money from their wallet, and publish their public keys so that the network can verify that these transactions are legitimate.Order of transactions is also important: if Alice sends 10 BTC to Bob and then tries to send those same 10...

Full article: http://bitcoinmagazine.com/overcoming-moral-and-visceral-...

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