Hedgy bitcoin price under the hood of the bitcoin protocol helps give insight to the mathematical foundations of the digital currency. How Can I Buy Bitcoin?
How Does Bitcoin Mining Work? How Do Bitcoin Transactions Work? How Can I Sell Bitcoin? How Does Blockchain Technology Work? What Can a Blockchain Do?
What is a Distributed Ledger? How Do I Use Ethereum? What is a Decentralized Application? How Do Smart Contracts Work? Here, he gives an overview of the mathematical foundations of the bitcoin protocol.
One reason bitcoin can be confusing for beginners is that the technology behind it redefines the concept of ownership. To own something in the traditional sense, be it a house or a sum of money, means either having personal custody of the thing or granting custody to a trusted entity such as a bank. With bitcoin the case is different. Bitcoins themselves are not stored either centrally or locally and so no one entity is their custodian. They exist as records on a distributed ledger called the block chain, copies of which are shared by a volunteer network of connected computers. What does that mean and how does that secure bitcoin? Let’s have a look under the hood.
Elliptic Curve Digital Signature Algorithm. With bitcoin, the data that is signed is the transaction that transfers ownership. ECDSA has separate procedures for signing and verification. Each procedure is an algorithm composed of a few arithmetic operations. The signing algorithm makes use of the private key, and the verification process makes use of the public key.