12-16-2010, 04:45 PM
(12-16-2010, 06:32 AM)Ali Quadir Wrote: Unity, I saw bitcoin before, do you know how they plan to avoid people just making their own new bitcoins? I don't see how anything digital and decentralized could be impossible to duplicate. Why would I not be able to give the same bitcoin I bought milk with yesterday to the baker today?
check their faq. it is a very high level encryption scheme, in which the network also knows how much you have.
you actually can create bitcoins, the system actually creates you bitcoins. this is a payback for you allowing the network use your computer power to run it. but, it is proportional to participants. if there are few participants in networks (as it was before) and therefore few cpu power to run the network, your cpu would generate much more coins. but now there are a lot of people and huge processing power available, and generating 1 bitcoin takes more than 704 hours with a decent computer.
technically you can create a server farm, do parallel computing and generate bitcoins. but you would pay more for electricity than the potential value of the bitcoin you generate.
system is rather based on that. it assumes the power of electricity is a factor in this. and rather right too, because if electricity becomes widely available and free, it is possible that we may actually not need any coin or money for anything, in that abundance.