Bitcoin Cash Reference

 

 

A lot of people have been talking about the new venture that is called bitcoin cash, however very few know much more than that. You can usually find people talking about it in internet forums such as brewing. But there is a lot more to this than just internet forums. To better explain, lets take a look at how the whole system works and why you should be considering it if you are looking to enter the exciting world of digital currency. Here is a brief description of how the system works.

The most important aspect of bitcoins is what is known as proof-of-work or proof-of-burn. This is what validates the bitcoins as an actual worthwhile investment and not just some kind of digital scam. The idea behind the proof-of-burn is that the network that backs the bitcoin protocol is called the proof-of-work (or PoW). The miners that help create the network will be paid a certain amount of money every time that they add a new block on the software that controls the creation and maintenance of the bitcoin cash system. If they produce a real proof-of-burn, they will be compensated with a fee called the "block reward".

Alongside the Bitcoin Cash Reference, the second most important aspect of bitcoins is referred to as the "blockchain". The chain is a database that lists all the transactions that have taken place throughout the lifetime of the currency. All these transactions are listed in chronological order and are also encrypted so that the owner of the bitcoins can ensure their privacy. The problem with this system, though, is that it means that if someone wants to steal one of the bitcoins they have there is a high chance that they will be able to trace the transaction. Imagine someone wanting to withdraw ten thousand dollars from their account and you only have a week in which to get it done. Even if that person were successful, they would then have to wait a week until the next block comes into effect - meaning that their ten thousand dollars would be divided up over twenty four hours.

There is an alternative to this system called the bitcoin reference client. This program is built around the idea of being able to monitor the transactions per second of the network. By monitoring the trades that go through the bitcoin reference client, someone who is interested in the transaction can log in and take a look at how long it took for the transaction to go through and where it went through. The software will allow anyone to look into the history of any particular transaction, they want to see if anything suspicious occurs. The point here is that the bitcoin reference client can track exactly how many transactions are going through at any given moment.

One of the problems with this tracking system is that it can be easily abused by somebody who wants to take advantage of the network. If a malicious user has access to the reference server then they could easily disable all the transactions that go through so that nobody else can look at the history. The average transaction takes about ten minutes on average. Imagine if you had an application that could track your average transaction time, you could disable anybody who wanted to take advantage of you by timing their transaction perfectly.

For instance imagine that there was a dating application. You gave your information and the first person you saw had two profiles, one of them was your dream partner. You saw the other profile, saw two pictures and waited a few minutes before sending a message. If you waited that long then you could have disabled your own profile leaving your dream partner lonely and potentially making a bad transaction. This is why we need to make sure that the toomim system that goes through the bitcoin network is secure.