What is Bitcoin? - VPN Services accepting BitCoin
We felt it was essential to talk about the famous virtual money, Bitcoin (also known as peer to peer currency, crypto-currency or electronic decentralised currency). Bitcoin is the payment method that best matches the spirit of VPN use:
—> Personal data protection for the user
My introduction to BITCOIN has two parts:
A decentralised transaction network
Digital money (units counted in ฿) that circulates on a P2P network
- There are a lot of sites and forums where members make a lot of transactions. Between promised codes for sponsorship, “sure things”, reliable offers, “too good to be true” proposals, offshore accounts and other speculative transaction, we advise caution!
- BitCoin can vary wildly: at the moment its value is increasing but it could crash altogether. Do not bet hundreds of euros hoping to make your fortune on the back of a sudden increase in value. This is just the beginning. It is better to wait a while for rules and strictures to take effect. Bitcoin is just maturing.
- Consider BTC as an interesting way to discover something new, exciting and incredible. Use it buy a few things, like a VPN service or some Hosts to test it out, like we did, and to discover more. One thing is certain: it is very easy to use, instantaneous, fast and secure. BTC has a magical quality about, strange and powerful!
Where do you find it then? This the first question for a new user.
- The classic method is to buy BTC on an exchange platform. You deposit money via bank transfer (SEPA) a certain sum of money into an account you have created, then request a purchase, calculating the price. We have found several exchange platforms – but be aware, they have not actively been tested by us!
- Some sites offer to find you « fragments » of Bitcoin, but we are not sure how much that could be worth. Personally, we would not trust deals like: watch a video, fill in a questionnaire and win 0.001 BTC! However if you are interested: BitVisitor: BitVisitor
- Mining bitcoins !!!! You can mine them! It’s true! The principle is ingenious, based on a system of rewards for extraction. Each transaction (resolves a « Block ») must be confirmed by a mathematical calculation (proof of work) that is very complex, which adds to the number of units in circulation. The miner is the computer (generated randomly) that makes calculations to verify transactions. In recompense, it receives a sum of Bitcoins generated at regular intervals (50 BTC every 10 minutes for the first four years in the system) up to a limit of 21 million. In the beginning it was just a BTC user that did the calculations. (The first versions of the programme Bitcoin-Qt had a tab called Mining, that has since been withdrawn due to the increased complexity which stops basic computer from mining). Then it became impossible or untenable to do so individually. This is why most miners now belong to “pools” (mining groups) to increase their collective power of calculation, so the group can resolve blocks reasonably regularly. These “pools” are rewarded in proportion with their calculation capability and granted units of currency (which are then shared by the users).
- A third party can carry out the transaction with your address. N.B. The transaction will be registered by the system after about 10 minutes
Once you have bought your BTC you have to stock them either in a local or virtual « wallet » that lets you make transactions. (You can create a wallet even before you get some BTC!)
Once installed, Bitcoin-Qt starts by synchronising with the rest of the network. To do so it downloads the total history of transactions made since the beginning of Bitcoin, which lets it then take part in validating future transactions. The programme also works as a virtual wallet. You can add as many Bitcoin addresses as you like, each address generated uniquely according to the hash code algorithm SHA-256.
We tried BlockChain
Signing up is easy, as long as you…
- Note down your password and learn it by heart! There is no way to recuperate a lost or forgotten password.
- Write your login ID on a piece of paper. Don’t keep it with your password, for security reasons!
- Know that you can create an account without an email address, although you do need one if you want an email summary of your details, the link to connect and a saved version of your wallet, encrypted in AES that contains everything you need to re-open your Bitcoin wallet.
Once the account has been created you can access the basic user space where you will find:
- Your Bitcoin address – here is an example : 2A1zP8eP3QGefi2TMTfTL5VVmv9DivfPa - Using this address in payment programmes allows you to realise transactions with third parties and to pay them. If you lose the address, you lose the access to your electronic funds.
- Make a new Bitcoin address
- A space for transactions (sending and receiving money) – a Bitcoin address is the only information necessary to receive Bitcoins – impressive ease of use
- Options for increasing the security of your account, like double identification
- Mnemonic password
After that, all that is left is receiving the money !
Anonymity is possible because the programme or the Wallet doesn’t need any personal data from the user. Pedants prefer to use the term “pseudonymity” since even though the transactions do not reveal any information about the user identity (for example you can send money to a third party totally discreetly to buy products or services; the seller does not need to know the buyer) but the transaction history will be saved forever. Anyone can consult sales and transactions through a particular address atr http://blockexplorer.com/
The official website reminds you of a few tips to protect your privacy
You can find the complete list on these sites
Litecoin – Litecoin (LTC) uses a different encryption from Bitcoin (Scrypt instead of SHA-256) with the explicit goal of preserving for as long as possible the original democratic dimension of currency mining. The network is in fact programmed to generate 84 million units in the end. This is not a random number but corresponds to the faster speed of Litecoin compared to Bitcoin. So if it takes 10 minutes to generate a block and validate a transaction on the Bitcoin network, the Litecoin version only takes 2.5 minutes. Litecoin is mostly exchanged on BTC-e, one of the biggest exchange platforms after Mt.Gox BTC-e
FeatherCoin - Feathercoin was launched at the end of April and already has quite a large community of miners and users. It is in fact derived from Litecoin, also based on a Scrypt algorithm, which can still be mined with simple graphics cards. The total number of FTC will reach 336 million units, four times as many as Litecoins (themselves four times more numerous than Bitcoins). The time necessary for mining a block is the same as for Litecoins, 2.5 minutes, but the reward per hour is 200 FTC.
Namecoin – derived directly from Bitcoin, Namecoin is both a crypto-currency and a system that lets you stock data so that it is decentralised. Its first practical application involves offering an alternative to DNS, capable of avoiding any censoring of domain names. Namecoin is mostly traded on BTC-e.
When this is unacceptable for security reasons, then Bitcoin or some other cryptocoin should be used.
Bitcoin can also be provided with a strong anonymity layer simply by running the Bitcoin client behind Tor.
Litecoin (LTC), Ripple (XRP), BlackCoin (BC),CryptogenicBullion (CGB), Dogecoin (DOGE),DarkCoin (DRK), Namecoin (NMC),Novacoin (NVC), Peercoin (PPC),Unobtanium (UNO) AIRVPN
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