This article is an excerpt from my book, A brief introduction to Bitcoin.
Bitcoin’s proof-of-work scheme prevents double-spending for slow payments where the payee waits for the transaction to be acknowledged in at least one block. Each new transaction goes through two stages of verification, once after creation and once after it has been included in a block, as described earlier. As a result, a double-spending of the same Bitcoins would require a very high computing effort for the generation of fake blocks. This type of double spending is discussed in the next chapter, as part of the larger issue…
Listed below are selected key events that played a role in Bitcoin’s initial evolution and performance. Due to the great number of important occurrences, the list is incomplete and doesn’t cover all relevant or influencing events. Please understand it as my personal view on what happened in the world of Bitcoin up to the date my book A brief introduction to Bitcoin was published. For the sake of clarity, the chronological development is divided into a few subsections.
· Satoshi Nakamoto publishes the Bitcoin white paper on 31 October 2008.
· On January 03, 2009, the genesis block is created.
“It is not sufficient that everyone knows X. We also need everyone to know that everyone knows X, and that everyone knows that everyone knows that everyone knows X — which, as in the Byzantine Generals’ problem, is the classic hard problem of distributed data processing.”
- James A. Donald
A fundamental problem in distributed networks is finding consensus in the presence of faulty or defective processes. A dependable system must manage the failure of one or more of its components when it either permanently crashes, repeatedly boots-up and shuts-down, or behaves byzantine, meaning damaging in the worst possible way…
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