![]() ![]() Once you connect your Bitcoin wallet to your own Bitcoin full node, you can be sure you won’t be tricked by a malicious actor in the network with regards to your Bitcoin funds since you’re communicating independently to the Bitcoin network without using any third party. Your Bitcoin core program will essentially recompute and validate all the signatures that are fed to it by other peers of the network to make sure they are authentic and valid. On a more technical note, the history of Bitcoin that we’re talking about here is basically the set of UTXO’s (Unspent transaction outputs). It also contains the Bitcoin Core wallet, but you can also use a variety of other wallets with your own node. These days, they are often referred to as full Bitcoin nodes and the program they are running is known as Bitcoin Core.īitcoin Core is basically an open-source software that lets you independently verify the entirety of Bitcoin’s history through a complete blockchain validation according to its original protocol rules. In fact, all you need is a computer, some hard disk space and a few hours of your time.Ī peer in the Bitcoin network is just another name referring to the servers that maintain and protect the network by making sure everybody is on the same page in regards to the rules mentioned above. You don’t need to own any Bitcoin in order to become a peer. So what exactly is a peer? Do you become a Bitcoin peer once you buy your first Bitcoin? Is there a certain threshold of satoshis you have to reach before being honored with this title? The short answer is no. The concept of the peer is fundamental, as it pins down the smallest independent increment of the whole network. ![]() In fact, the Bitcoin white paper itself was titled “ A Peer-to-Peer Electronic Cash System”. You probably heard numerous times that Bitcoin is a peer-to-peer technology and network. The two aforementioned rules above are only one of the hundreds that make Bitcoin work as a whole. The concept of hard money versus easy money has been slowly fading away during the last decades as countries have gradually shifted from a gold standard to fiat one. Such rules, like the predictable issuance schedule and a hard cap of 21 million units, make Bitcoin a truly hard money. People are attracted to Bitcoin as an investment vehicle since its properties and rules are completely distinct from any other more traditional type of assets such as gold, stocks, bonds, or regular fiat money. ![]() Anyone can participate, and the more that do, the more robust the network becomes.īitcoin is often singularly viewed as a digital asset that can be used as money. Written by Bitcoin Core is the software that allows one to independently validate the entirety of Bitcoin’s history according to its consensus rules. ![]()
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