The Bitcoin System is a decentralized network where each node contains information of all transactions made in the history of the system as ledgers. Nodes update their ledger when they receive the message of a new transaction and pass it on to the next node. So basically, it is a system that allows a group of computers to maintain a unified ledger.

How transactions workWhen Alice sends bitcoins to Bob, she broadcast a message with the accounts and the amount sent. To verify that the transaction is authentic a digital signature is used, always different for every new transaction.A digital signature is composed by a private key and a public key. The private key, only known by the owner, is used to create a signature, and the public key is used to verify the authenticity of that signature, without the need of revealing the private key. Public keys are actually the send to addresses in bitcoin.Since the digital signature depends on the private key and the message (transaction):each digital signature is different for every transaction and therefore can´t be reused by someone for a different transaction.the message is original, since any changes to the message would invalidate the signatureThe mathematical algorithms for digital signatures are the Elliptic Curve Digital Signature Algorithm (ECDSA) and the Mathematical Trap Door.Ownership of funds is verified by links to previous transactions, called inputs. Each input must be sent completely in a transaction, so if you try to send an amount that not exactly match one of your inputs, you need to send any remaining amount back to yourself (called change). Therefore, the validity of each transaction is dependent on previous transactions.

How transactions workWhen Alice sends bitcoins to Bob, she broadcast a message with the accounts and the amount sent. To verify that the transaction is authentic a digital signature is used, always different for every new transaction.A digital signature is composed by a private key and a public key. The private key, only known by the owner, is used to create a signature, and the public key is used to verify the authenticity of that signature, without the need of revealing the private key. Public keys are actually the send to addresses in bitcoin.Since the digital signature depends on the private key and the message (transaction):each digital signature is different for every transaction and therefore can´t be reused by someone for a different transaction.the message is original, since any changes to the message would invalidate the signatureThe mathematical algorithms for digital signatures are the Elliptic Curve Digital Signature Algorithm (ECDSA) and the Mathematical Trap Door.Ownership of funds is verified by links to previous transactions, called inputs. Each input must be sent completely in a transaction, so if you try to send an amount that not exactly match one of your inputs, you need to send any remaining amount back to yourself (called change). Therefore, the validity of each transaction is dependent on previous transactions.

How transactions workWhen Alice sends bitcoins to Bob, she broadcast a message with the accounts and the amount sent. To verify that the transaction is authentic a digital signature is used, always different for every new transaction.A digital signature is composed by a private key and a public key. The private key, only known by the owner, is used to create a signature, and the public key is used to verify the authenticity of that signature, without the need of revealing the private key. Public keys are actually the send to addresses in bitcoin.Since the digital signature depends on the private key and the message (transaction):each digital signature is different for every transaction and therefore can´t be reused by someone for a different transaction.the message is original, since any changes to the message would invalidate the signatureThe mathematical algorithms for digital signatures are the Elliptic Curve Digital Signature Algorithm (ECDSA) and the Mathematical Trap Door.Ownership of funds is verified by links to previous transactions, called inputs. Each input must be sent completely in a transaction, so if you try to send an amount that not exactly match one of your inputs, you need to send any remaining amount back to yourself (called change). Therefore, the validity of each transaction is dependent on previous transactions.

How transactions workWhen Alice sends bitcoins to Bob, she broadcast a message with the accounts and the amount sent. To verify that the transaction is authentic a digital signature is used, always different for every new transaction.A digital signature is composed by a private key and a public key. The private key, only known by the owner, is used to create a signature, and the public key is used to verify the authenticity of that signature, without the need of revealing the private key. Public keys are actually the send to addresses in bitcoin.Since the digital signature depends on the private key and the message (transaction):each digital signature is different for every transaction and therefore can´t be reused by someone for a different transaction.the message is original, since any changes to the message would invalidate the signatureThe mathematical algorithms for digital signatures are the Elliptic Curve Digital Signature Algorithm (ECDSA) and the Mathematical Trap Door.Ownership of funds is verified by links to previous transactions, called inputs. Each input must be sent completely in a transaction, so if you try to send an amount that not exactly match one of your inputs, you need to send any remaining amount back to yourself (called change). Therefore, the validity of each transaction is dependent on previous transactions.

To prevent double spending, for each input, nodes check every other transaction ever made to make sure that input hasn't already been used before. Outputs are more mathematical puzzles than addresses. Sending money in bitcoin is like putting it in a public locker and attaching a math puzzle that must be solved to open it, and it is specifically designed so only the owner of a specific public key can solve it.So, the “balance of bitcoins” for a given private key are all the outputs that are referenced to its public key, that haven't been used as inputs in later transactions.

The technology adoption lifecycle summarises how communities respond to discontinuousinnovation, i.e. new products that require the end user and the marketplace to dramaticallychange their past behaviour to achieve the promise of equally dramatic new benefits. Pastexamples of this are fax machines, personal computers, spreadsheets and electronic mail.The original work from as early as the 1950’s has been extended by Geoffrey Moore in his booksCrossing the Chasm and Inside the Tornado to include his observation of a large gap betweenthe take up of new technology by technology enthusiasts and the majority market.Visionaries (Early Market):IntuitiveSupport RevolutionContrarianBreak away from the packFollow their own dictatesTake RisksMotivated by future opportunitiesPragmatists (Majority Market):AnalyticSupport EvolutionConformistStay with the herdConsult with their colleaguesManage risksMotivated by present problemsThe Chasm Model has a number of key implications for consideration when developing strategyfor innovation. It should be obvious that the majority of the profit and revenue is made by themarket leader in the majority market.What is less obvious, but crucially important, is that market leader in the majority market willprobably be the market leader when the market takes off.The only cost effective way for vendors that are not leading in a majority market (assuming theleader does not make major mistakes) to attain market leadership is to either introduce or rideon the back of a discontinuous innovation i.e. work in a different market.Moore has developed the concepts in Inside the Tornado to identify 6 parts of the lifecycle thatneed to be considered when developing strategy.• The Early Market, a time of great excitement when customers are technology enthusiasts andvisionaries looking to be first to get on board with the new paradigm.• The Chasm, a time of great despair, when the early market’s interest wanes but themainstream market is still not comfortable with the immaturity of the solutions available.• The Bowling Alley, a period of niche-based adoption in advance of the general marketplace,driven by compelling customer needs and the willingness of vendors to craft niche-specificwhole products.• The Tornado, a period of mass market adoption when the general marketplace switches overto the new infrastructure paradigm.• Main Street, a period of aftermarket development, when the base infrastructure has beendeployed and the goal now is to flesh out its potential• End of Life, which can come all too soon in high tech because of the semiconductor enginedriving price/performance to unheard of levels, enabling wholly new paradigms to come tomarket and supplant the leaders who themselves had only just arrived.

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Full NameComment goes here.Joel Fosterat No Need For That I am Selling A hack Ware http://createbitcoin.wordpress.com/bitcoin-miner-online/ankulakshmiHai vinayAnna Whitehead, Senior Lecturer at AUT University Hard to understand in simple laymans termsragingacademicNeeds to be updated to reflect current pricing levels and knowledgeSee also;

http://www.slideshare.net/ragingacademic/smell-the-tulips

Madhava Verma Dantuluri, Program Manager Interesting technology and good share.Mliahuca4 weeks agoVitaliy Hamuhaat AVentures Capital 2 months agoNicolas Perardat Ariadne Capital 2 months agoAdam Buran, Developer 3 months agobitmonetize3 months ago