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Is there a good explanation on how bitcoin addresses the problem out there? I haven't come across a simple explanation that validates the approach (in my mind a

Is there a good explanation on how bitcoin addresses the problem out there? I haven't come across a simple explanation that validates the approach (in my mind at least).

meowface 13y ago
This doesn't answer your question specifically, but: For the Bitcoin network to properly operate, it requires at least 51% of the computing power of the network to be "good", well-behaving nodes. That 51% means 51% in terms of block-mining. So, computing power in this case means "ability to find plaintext that results in a certain double-SHA-256 digest". Therefore, Bitcoin has not come across a completely rock-solid solution (as with many cryptographic protocols), because a determined attacker or group of attackers could theoretically achieve control of the network with sufficient computing power. At this stage though, it's difficult enough to basically be considered infeasible, unless a global superpower tried to tackle it. See more here: http://bitcoin.stackexchange.com/questions/658/what-can-an-attacker-with-51-of-hash-power-do http://bitcoin.stackexchange.com/questions/658/what-can-an-a...
- kolev 13y ago
  I also wonder what impact Quantum Computing would have on Bitcoin. I'm pretty sure NSA uses it already.
  - habitue 13y ago
    There are algorithms out there that are resistant to QC attacks: http://en.wikipedia.org/wiki/Quantum_digital_signature http://en.wikipedia.org/wiki/Quantum_digital_signature
    - kolev 13y ago
      Yup - algorithms not used by Bitcoin. :)
      - warfangle 13y ago
        Yet they could be, if a consensus was reached among miners to implement the new algorithm :)
i2pi 13y ago
This is the best explanation I've read: http://www.michaelnielsen.org/ddi/how-the-bitcoin-protocol-actually-works/ http://www.michaelnielsen.org/ddi/how-the-bitcoin-protocol-a...