@ -6,13 +6,13 @@
((("bitcoin", "overview of", id="BCover02")))((("central trusted
((("bitcoin", "overview of", id="BCover02")))((("central trusted
authority")))((("decentralized systems", "bitcoin overview",
authority")))((("decentralized systems", "bitcoin overview",
id="DCSover02")))The Bitcoin system, unlike traditional banking and
id="DCSover02")))The Bitcoin system, unlike traditional banking and
payment systems, is based on decentralized trust. Instead of a central
payment systems, does not require trust in third parties. Instead of a central
trusted authority, in Bitcoin, trust is achieved as an emergent property
trusted authority, in Bitcoin, each user can use software running on
from the interactions of different participants in the Bitcoin system.
their own computer to verify the correct operation of every
aspect of the Bitcoin system.
In this chapter, we will examine bitcoin from a high level by tracking a
In this chapter, we will examine bitcoin from a high level by tracking a
single transaction through the Bitcoin system and watch as it becomes
single transaction through the Bitcoin system and watch as it
"trusted" and accepted by the bitcoin mechanism of distributed consensus
is recorded on the blockchain, the distributed ledger of all
and is finally recorded on the blockchain, the distributed ledger of all
transactions. Subsequent chapters will delve into the technology behind
transactions. Subsequent chapters will delve into the technology behind
transactions, the network, and mining.
transactions, the network, and mining.