I continue a subject of myths about bitcoin. Today we will consider the Bitcoin technology. Let's begin!
Anyone therefore they have no value can create bitcoins
Bitcoins are not printed and not created. Process of issue of bitcoins is defined by mathematics and is regulated by the distributed network. Maynera calculate blocks for processing of transactions and maintenance of network, and for the efforts, receive a certain sum of bitcoins. Article about a mining explains process in details.
Bitcoins have no value as are based on unreliable cryptography
Algorithms SHA256 and ECDSA which are used in Bitcoin are widely known algorithms of an industry standard. The algorithm SHA-256 is approved and is used by the U.S. Government and also is standardized (the standard of safe hashing FIPS180-3). If you believe that these algorithms are unreliable, you should not trust bitcoins, transactions with use of the credit card or to any other type of wire bank transfer. The bitcoin is so reliable in the basis, as well as bank transactions.
Bitcoins are kept in files purses therefore they can be copied and multiplied
No, your purse contains only your confidential keys granting to you the right to spend your bitcoins. It can be compared to as though you stored payment requisites in the file. If you provide someone to another your payment requisites (or a purse for bitcoins), it will not double the sum of money on your account, and will allow other person to dispose of your bitcoins.
Having a sufficient computing capacity, it is possible to intercept management of the Bitcoin network
as the network grows, it becomes harder and harder to carry out personal capture. Computing power of the Bitcoin network already considerably exceeds the power of all supercomputers of the world combined. For the successful attack it is necessary to seize 51% of power of network that corresponds to tens of millions of dollars of investments into the equipment.
At connection to network the burglar is limited in the actions. Under no circumstances the burglar cannot create counterfeit coins or take someone's money.Possibilities of the burglar are limited to ability to return recently spent money and not to allow receiving confirmation of the transaction which is carried out by other people. Such breaking will manage too expensive, and the rational economic incentive and insignificant benefit will not be sufficient to make similar action.
Moreover, the similar attack does not give long-term advantages. As soon as the attack stops, the network restores normal functioning.
After production of 21 million coins, nobody will generate new blocks
Considering that remuneration for generation of the block gradually decreases, hypothetically this situation has to arise still before all bitcoins are emitted. At some point costs of a mining will surpass the amount of remuneration at detection of the block. Nevertheless, in this case mayner will be able to get profit on the commission for transactions which they include in blocks.
Quantum computers could break safety of the Bitcoin system
While the algorithm of the digital signature really is exposed to danger at implementation of quantum calculations, quantum computers do not exist yet and, perhaps, will not appear still for some time. Safety of the Bitcoin system, at the correct use with the new address on each transaction, depends on bigger number of factors, than just on an algorithm of the digital signature. Cryptographic hashes are much more resistant, than algorithms of the digital signature at quantum calculations. Safety of the Bitcoin system was created for the purpose of its further improvement with direct compatibility and it can be improved in case of real threat.Are exposed to risk from quantum computers as well such financial institutions, such as banks because at implementation of transactions they use cryptography.
The Bitcoin system was already cracked
In the history of Bitkoin there was never a breaking of a chain of blocks, the uniform distributed database on all transactions. Also the thefts which were result of bad security of the original client Bitkoin or vulnerability of the protocol were not noted. The Bitcoin system is protected by standard cryptographic functions. These functions were reviewed by the experts in cryptography who came to conclusion that in the near future the system will be hardly subject to breaking.
It is possible to claim about confidence that the currency in itself was never "cracked". However, several largest websites were cracked in the course of use of system. In some media it was in a false manner interpreted as breaking of the Bitcoin system. By analogy, it is impossible to tell that theft of US dollars from cash desk of a supermarket, means that the currency presented in US dollars was "cracked".
The majority of cases of thefts of bitcoins is result of the inadequate level of safety of a purse. In response to a wave of stealing in 2011 — 2012, the community developed such measures for decrease in risk as enciphering of a purse, support of multiple signatures, offline purses, paper purses, equipment rooms of purses. As these measures gradually extend among sellers and users, it is expected that the number of thefts will decrease.
The reference to the previous post myths about bitcoin (Economy)https://steemit.com/cryptocurrency/@krutilla/myths-about-bitcoin
All thanks. and to new posts!))
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Hi great piece. I like it. We are working on the same field
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Hi. Thanks. I watched about 2 years and penetrated into Bitcoin and drew conclusions for myself)
Didn't know the government used SHA256. Do you know what they use it for?
Definitely I do not know. There are certain guesses. Besides, it is myths)
Will share this info
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Interesante publicaciòn. Nos hace reflexionar a cerca de la seguridad de la tecnologìa Blockchain; esta deberìa estar blindada contra los Hackeo, ls Bifurcaciòn, la vulnerabilidad y las acciones malintencionadas de los desarrolladores, a fin de evitar robos, tal como el sufrido en Coinrail, un exchange de Corea del Sur, que sus responsables aseguran que un gran porcentaje de las Criptodivisas estaban en las llamadas "Cold Wallet", carteras que no estàn conectadas a Internet.
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STOPTo support your work, I also upvoted your post!