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A Detailed Explanation of the Bitcoin Protocol

We posted a video last week about the basic principles of Bitcoin.  Here’s a detailed explanation for the layman of how Bitcoin’s cryptography works.

Understanding the details of the Bitcoin protocol opens up otherwise inaccessible vistas. In particular, it’s the basis for understanding Bitcoin’s built-in scripting language, which makes it possible to use Bitcoin to create new types of financial instruments, such as smart contracts. New financial instruments can, in turn, be used to create new markets and to enable new forms of collective human behaviour. Talk about fun!

Follow the link to the description of Smart Contracts, too.  These are long reads, but they’re worth it, if you want to start thinking about Bitcoin as a new kind of instrument, and not merely as a store of value.

Posted in SciTech.