BitCoins – a crypto-currency

BitCoins are a highly interesting topic, from a business perspective and leave room for some questions and assumptions. For now I just wanted to post some links.


Q. What is Bitcoin?

A. Bitcoin is a peer-to-peer currency. Peer-to-peer means that no central authority issues new money or tracks transactions. These tasks are managed collectively by the network.

Q. How does Bitcoin work?

A. Bitcoin utilises public-key cryptography. A coin contains the owner’s public key. When a coin is transferred from user A to user B, A adds B’s public key to the coin, and the coin is signed using A’s private key. B now owns the coin and can transfer it further. A is prevented from transferring the already spent coin to other users because a public list of all previous transactions is collectively maintained by the network. Before each transaction the coin’s validity will be checked.

Here is where you can buy and sell:

Here is more on the “Mega-Hack” Inside the Mega-Hack of Bitcoin: the Full Story

A list of places that accept bitcoins:

Here is an interesting discussion on the legal side

What do you think? Leave a comment to let me know your opinion. Are you going to make your own BitCoins? Are you thinking about accepting them for your services and products?