Bitcoin client is a special piece of software that you can install on your computer to make Bitcoin payments.
Bitcoins can be exchanged for mainstream currencies such as US dollars or Euros
Bitcoin miners are nodes in the Bitcoin peer-to-peer network that help prevent double spending of bitcoins
Properties of the Bitcoin payment system:
Privacy - No need to disclose personal information when making payments.
Open - Just need an internet connection; do not need a bank account or credit card.
Decentralised - Not centralised to any bank or financial institution.
MD 5 and SHA-256 are examples of algorithms that are used as cryptographic hash functions.
The output from a cryptographic hash function is called a digest
Cryptographic hash functions produce outputs of fixed length.
Example: The digest produced by the SHA-256 cryptographic hash function is exactly 256 bits in length.
Important properties of cryptographic hash functions are:
Information is hidden
Output randomly generated
RSA and DSS are examples of digital signatures
When creating a digital signature the following keys are generated:
In a digital signature the verification key is made public.
In a digital signature the signing key is kept private.
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