Bitcoin : The virtual Currency

you're kryptos so today we're gonna talk about thing I'm pretty sure you all know what it is it's called Bitcoin this video will address both beginners and the one who know quite well Bitcoin because I really try to raise interesting elements and to explain how Bitcoin works I knew I knew her quite late because bitcoin is kind of like cryptocurrencies father and kind of like a father to you script to analyze wouldn't exist with a Bitcoin said today we're gonna try to understand a little bit better how our daddy works it all began in 2008 when someone or more like upset a name called citizen encounter diffused in a mailing list a white paper entitled Bitcoin a peer-to-peer electronic cash system the mailing list it was diffused on belongs to a cipher Bank Group a cipher pen group it's it's a group that has a common value and a common manifesto which is to defend privacy but the Southbank who received a white pepper they didn't pay too much attention to it because that there is a lot of things that circulate in this world a lot of novelties lot of new IDs and yeah Bitcoin was ignored but it didn't stop such an account who to to worked on this project and in 2009 a live version so it's kind of like a usable version of Bitcoin was published it was in January 2009 to be more specified with the 3rd of January 2009 that the Genesis block was created the Genesis block is kind of like the first block ever created on the blockchain in this block there is funny enough element a text was integrated into what's called the coin base and this text directly refers to an article published on the times in the 3rd of January 2009 also holding the subprime crisis the financial crisis of 2008 the article talked about a possible bailout of England banks by the Chancellor deputy of checks books you know the guy who's in charge of the Treasury of the England governments and it's quite funny cuz bitcoin arrived just after the the subprime crisis and in the genesis book there is a direct reference to this crisis because they could have put any other article of the day but they choose to put this one who is talking about banks and about this crisis you may already know it but we don't have any idea of the identity of Bitcoin creators like Satoshi Nakamoto is on the episode name it could be anybody there are three main suspicions for many different reasons and like I'm gonna present you the three because I think it's quite interesting the first one is Nick's habit because long before 2008 you know long before the release of the white pepper a Hubert and a system he created that was called bit gold and bit gold has a freaking a lot of similarities with Bitcoin the second one is waiting he's a cryptographer and he worked long before so on a systemic created that incorporates a proof-of-work and it's really the premises the princes of what we used today in Bitcoin the third person is alpha nu because it holds so worked on a system that is called hash cash and that incorporates a proof-of-work and it's really looking a lot like what we have today in Bitcoin Bitcoin goals are here they want to do exactly what other banks are doing but without having to have a trust system you know without having to trust institution it directly goes through a decentralized network we have explained this in in another video it's really clear it's really an image here and explain how Bitcoin works it goes a little bit in depth and I really advise you to watch it if you don't quite understand how Bitcoin works but but I'll try to explain the basis now so Bitcoin it's all about a proof-of-work to generate a consensus the principle of proof of work is to put miners in competition for them to discover new blocks and a block is what involves transactions and in this case it's transactions it changes all value exchanges of Bitcoin tokens and yeah miners are competing to find new blocks before the other one but why why are there competing well it's quite simple it's really for the reward they get when they find a new a new block I because a block I can't possibly be found by only one miner this competition is really a random game but with a probability to find a new block I proportional to the computing power of a miner so a miner a weak equipment could find a new blood but it's just less probable when you have other miners who have like a lot of computing powers and that's why right now we're looking at a lot of mining forms regrouping a lot of computing power you know so they can like get a lot of rewards because they found a lot of new blocks and a block is found each 10 minutes or so and those 10 minutes depend on the calculation of the difficulty probability to find a new block and it's it's calculated to make sure that we found a new blog every 10 or so minutes so it may be that you find a blog after five minutes but it also may be that you find a blog after 50 minutes like it can happen I don't know if it has happened yet but it can happen and a transaction is considered confirmed after six block so 60 minutes cuz if we consider that a block is roughly 10 minutes nowadays that's the firm behind Bitcoin it's called block stream they didn't create it Bitcoin but they participate actively in Bitcoin like they finances a lot of project projects related to Bitcoin and other projects that are not related to Bitcoin also like the project on w3c and did you know that we can program that we can develop and that we can create small contract with Bitcoin this is something that we don't mention like enough for me about Bitcoin but you can develop through its a scripting system that use something that is called Opie code and yeah it alls you when you make a transaction to do things like calculations for for example like ready to develop the program and beside when you send a transaction there is a code written by the miners so yeah there is a code in every transaction and I see you coming like if we can do smart contract with Bitcoin what is it around for Bitcoin isn't optimized for smart contract it's not complete Turing to understand what it is it means that it doesn't do loop like it can't repeat a function it's hard security measures and a theorem it really brings along something that can allow you to do smart contract because it has a language that is called complete Turing but there is a lot of things growing around Bitcoin and thinking about Woodstock so rich talk is not a project that was made on Bitcoin but it's a project that was made for Bitcoin like rich stocks there is two thing that is allowed by rich stock first is what's called the QI weapon and it allows you to like it will allows you from Bitcoin to exchange Bitcoin against other cryptocurrencies really similar to Bitcoin for example exchanging Bitcoin against Lycan without having to use an exchange like Kraken for example and the thing and thing is that you can create smart contract and Bitcoin thanks to its stock so today root stock is in test but it's really something that we should see happen in 2018 but surely in 2019 there is another project that is called the lightning Network I to understand this you have to understand that actually you can make like five seven transaction per second on Bitcoin but for example these are runs at like two thousand transaction per second so clearly bitcoin is still far from the cash like visa that allows you to make exchange of values really really quickly but the Lightning Network can solve a little bit this problem about slowness of Bitcoin through a quite complicated system that I won't explain here but that allows you to create payment channels so you can exchange value really quickly and we come back to block stream curves block stream finances the lightning that works project in mid-january block stream blanche helps absorb payment channel to use the lightning Network in full use like in life but it was say that he was just a test but what it means it that like it's retaking its place on the market and that in current 2018 I think yeah we should really see it explode especially since some developer are having fun too like creating new tools around that I'm thinking about a French company to Assange for the pros and the cons I'll start for with the pros so first of all the big benefit of Bitcoin is that in 9 years of existence there is only one inherent bug in the code it was fine by someone cool like Jeff Koz I he want you to create the segue to weeks that was really controversial well he was doing a transaction and like he looked at it and he was like it's a freaking huge amount right it was a transaction with really a really high amount a really high value so yeah the bug was corrected yeah it was the only flow that has been found it was in 2000 10 this flown has been corrected and it's really incredible like it's really important because in 9 years there weren't any other inherent bug in the code and there is like 20 million users today of Bitcoin so it's huge the second advantage of Bitcoin is the reputation like it's known it has a reputation it's recognized and why is that so important it's important because there is a lot of project a lot of people that are working on it I'm thinking about rootstock but I'm also thinking about the Lightning Network and all those like there are a lot of even like miners who like to to work on it and there is developers who like to create their own code to use on Bitcoin and it's really working to develop Bitcoin and it's great it's really great and a third advantage for me it depends on opinions but for me it's free and advantage is that it has no creator and it's really great because everybody start with the same thing and you can offer things at the same value and everything everybody is at the same place on the market but it can also be a disadvantage and I will come back to it in disadvantage what I will be talking about governance but first first coffee break ok the first disadvantage of Bitcoin is that it has no pollution like they're not putting a lot of effort in the marketing campaign or communication campaign there is blog stream who is also working on it but they're not free like doing a lot for the campaign for the communication campaign while there is other project like us that are pretty putting a lot into these things that they know that it works yeah if a person likes Bitcoin while he promotes Bitcoin if it doesn't like he doesn't promote it but yeah there is no with marketing campaign the second disadvantage is the problem of governance but like we talked about it when we talked about Cardinal who is trying to work on this governance problem yeah when someone has a proposal for Bitcoin he writes a VIP like Bitcoin improvement proposal and it's sent and then it's a booty like do we accept it to validate it or not but it's not directly on Bitcoin it's not made on Bitcoin you have to send it either to a mailing list about development for Bitcoin or on website like github and things like that but it just took a lot of things the thing is validated or in our during discussions and it's not really implemented into Bitcoin so it takes a huge amount of time it's it's free it's really long yeah it's really long and the third disadvantage is that Bitcoin is becoming centralized gives for miners for example it used a lot of electricity conception it has a coast and some countries has wall low electricity cost and so as time goes by since 2009 and like the evolution well miners they reset hold in China because it's really low in terms of costs and of cost and we have a huge concentration of miners in China but we also have a huge amount of iTunes actors are the one who participate in the transaction in the distribution of Bitcoin transaction but there is no reward for being an actor like for example I use Bitcoin but I'm not an actor because there is no reward there is nothing it takes power on my computer because my computer has to burn and to broadcast everything that happens on the Bitcoin basically it must listening to that circulate within Bitcoin and in a chin you have to download the blockchain which is like 160 gigabyte but like not everyone has displaced on their hard drive and it's not remunerated there isn't any free word so yeah there is a lost in interest in being an actor in Bitcoin because of this so that was all for Bitcoin do not forget to like to not forget to subscribe if you haven't done it before and well that was all for today on Krypton analyzed

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