Quote:
Originally Posted by MyBitcoin
Bitcoin is P2P. There is no way to monopolize it.
Bitcoin uses SHA-256 and ECC.
Why wouldn't I? Bitcoin is open source and the whitepapers are free to download.
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Cryptography
If I understand this right, the strength of this currency relies on the strength of the SHA-256 algorithm?
Why use SHA-256 and not for example SHA-512?
http://en.wikipedia.org/wiki/SHA-2
Could these algorithms be considered weak?
As an example OpenSSL produces a 1024 key as default. Many commercial SSL certificates require 2048 bit keys.
It looks like this entire economy relies on the cryptographical strength of the chosen algorithms. Am I right?
Modified client software
How does the Peer-2-Peer system work like? Is it like a democracy where the majority rules?
Lets assume that X amount of evil peers have modified the source code in their client software to
ignore others winners claims for the 50 Bitcoins.
If there are enough of these rogue players (client nodes), then they would be able to rule that they are the rightful winners, and corrupt the concensus of the entire network.
It is based on voting power right? And nothing limits the number of clients? Each instance of the client software is a vote?
If I created 100 million virtual clients (with rogue software), I would be able to influence the entire economy? Or would I need to have 1 billion nodes?
Is there any mechanism which prevents fake nodes running fake software?
Quote:
Originally Posted by MyBitcoin
The nodes are essentially trying to crack the cryptographic hash of the next block in the blockchain. The node which wins is allowed (by all of the other nodes) to pay itself 50 Bitcoins. If the node didn't actually solve the puzzle, the other nodes ignore its claim to the block.
It's completely decentralized.  Decentralized minting, spending, double-spend checking, and clock synchronization. |
How does the mechanism work which prevents the same coin from being used twice?
Could that system be tampered with if 100 million fake nodes produce manipulated traffic?