traditional financial system
credit card system
No cash distribution trigger, but creditors take the risk of debtors not repaying their debts
Credit cards are bound to personal information, and banks can trace all consumption records of consumers
cash system
Cash allocation is required to trigger, otherwise the transaction cannot happen
Can know the exact value of an item
Better ensure user anonymity
Support offline transactions without calling a third party for transaction approval
bitcoin
special cash system
There is a certain degree of anonymity. Users do not need to use their real identity when paying with Bitcoin. However, if users are not careful enough, they can use public transaction accounts and smart algorithms to find out the user's transaction records and finally find out the user. identity
It does not fully support offline transactions, but the advantage is that it does not require a central processor and relies on a peer-to-peer network. This network has strong repair capabilities like the Internet.
It supports both transactions between users and merchants, and transactions between users and users
Using the blockchain, all information is recorded in the database ledger
Abandon the signature and rely only on the hash pointer to ensure the integrity of the data structure
A fundamental fusion of mathematical calculations to control the generation of new coins and secure timestamps to record transaction information and prevent double-spending
Adopt a mechanism that automatically adjusts the difficulty of operation periodically to ensure that the value of the new currency will not be depreciated due to the reduction in the difficulty of mathematical operations to create new currency.
decentralization
As a blockchain product, Bitcoin is decentralized because its clearing ability is distributed on several computers in the Bitcoin network instead of relying on a centralized server.
According to the design of Bitcoin, while the clearing power is distributed among several computers, major changes to the Bitcoin program are subject to voting. In this way, Bitcoin's decision-making is theoretically democratic, so it can also be said to be decentralized in this sense.
In digital cash, only consumers can be anonymous, Bitcoin provides the same level of confidentiality for consumers and merchants
