21 Oct '13, 12am

Bitcoin explained

Bitcoin explained Luca Matteis - Oct 20, 2013 Bitcoin is essentially a digital way to send and receive money. Numbers. But where are these numbers stored? If I receive 20 bitcoins from a user, and I turn off my computer, when I turn it back on, these coins are still retrievable from the internet, but again, where are they stored? Bitcoin stores your money in a decentralized fashion. We have to think a little outside the box here. There’s no central database with, say, MySQL installed that you can query and that will give you information about the money you have stored. No, instead your money is stored by many different computers across the network. Computers you don’t own nor trust. When you startup your Bitcoin client the first thing it does is it connects to other computers. It then proceeds to download the information it finds to makeup your account information from a v...

Full article: http://lucaa.org/post/64630765818/bitcoin-explained

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