Bitcoin is currently the dominant surcharge in virtual currency. Figure 5-3-1 shows the structure of a community around Bitcoin. The components and members will be described below.
Virtual currency credit creation method
Considering the above three points that generate credit, in the case of virtual currency, it becomes as follows.
(Virtual currency credit creation strategy)
- Source of Credit: Generally, in currencies, the state now provides proof of credit. However, virtual currencies are not currently issued by national institutions. Then, what kind of thinking will be used to create credit? Therefore, as an entity on the Internet, he decided to maximize trust in hacking to create credit. That is cryptographic technology, and we tried to secure it with a distributed ledger using blockchain technology. In other words, it aims to establish credit as a currency by creating a mechanism that can objectively secure credit and showing it. Specifically, it is necessary for the participating members to have different interests and to agree on a mechanism that allows them to be convinced together.
- Countermeasures against counterfeiting: Let’s assume that the security of the virtual currency ledger is broken. It is reasonable to think that a successful breakthrough will steal the maximum amount on the ledger. Therefore, in the case of virtual currency, it is in the same state as when ultra-high-value banknotes are issued, and it is obvious that there is always a risk of counterfeiting. In other words, the attack on the virtual currency suggests that the cost performance is extremely high.
Therefore, the method currently used in Bitcoin, which requires countermeasures against it, incorporates a mechanism that can never be hacked without doing a tremendous amount of calculation. In other words, the expensive electricity bills generated by keeping the server running for a long time are, so to speak, anti-counterfeit measures in ordinary currencies. And that is the barrier that prevents the cost performance of counterfeiting from being established.
- A group that may attempt forgery: A group that has knowledge of the virtual currency and has server resources that can perform the necessary calculation amount is assumed to be highly likely. It should be assumed that it is an organization involved in the development and operation of virtual currencies. “Mining” in Bitcoin is nothing more than a restraint measure in which organizations involved in management are involved in data verification work so that they are not tempted by hacking incentives and Bitcoin is provided as a reward. In this way, it is worth noting that the mechanism is constructed with a rational logic according to the “sexually mysterious theory” that is unlikely in Japan. As a result, instead of thinking that “crime or injustice should not occur,” it thinks that “it can happen at all times,” so the strategy is to take reasonable measures to prevent it. To make profitable investments follow the simple steps.
- Distributed ledger: A distributed ledger is a database in which the records of databases on servers distributed in multiple locations are synchronized and guaranteed to have the same recorded contents. In other words, this distributed ledger is “N-fold mirror file with different servers”, and the technology to prevent the contents from being tampered with. That is blockchain technology. A ledger is a book in which “specific information” is recorded according to a given format.
“Transaction information” such as money transfer history is recorded in the “coin book” of Bitcoin, and management is performed online. This “ledger” is used when “balance check” and “money transfer processing” are performed with “bitcoin”.
For example, when checking the “balance”, the “transaction information” so far is referred to and the balance is calculated from the contents.
It is important to note here that the balance itself is not recorded in the distributed ledger like a bank accounting master file. The only way to calculate the balance from this ledger is to check all “transaction information” and restore the balance data. For example, if you have a remittance history of “3BTC transfer from Mr. A to Mr. B” and there is no “transaction information” about Mr. B, the balance of Mr. B is calculated as 3BTC. However, since the “transaction information” actually recorded in the “ledger” is encrypted to some extent, it is not easy to identify an individual such as “A” or “B”. The “ledger” used in “bitcoin” is open to the public, and anyone can freely browse and download it. And, the contents can be freely verified.