Every be a true peer-to-peer system is each

Every
Bitcoin Node freely exchanges information about all the Transactions, Blocks
and IP addresses of known Nodes with all of its peers. In order to obfuscate
the identity of the IP that sent a given Transaction, the Standard Client
propagates only a random subset of Transaction information to most of peers
connected to it every minute, and provides only one of them with a full set. 6

 

All
information (beside ECDSA key) is shared to any peer requesting it, which ensures
everyone has all the information they need in order to secure the Network. The
reason The network to be a true peer-to-peer system is each Nodes stores
information on all the Blocks in the Block Chain, as well as all the current
information on Transactions and peers’ IP addresses. The situation could
sustain itself without the use of any centralized system.

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Chart 3.2: Average Confirmation Time of Transactions (Minutes)

 

 

3.1        
 Security

 

Traditional
Banking system ensures security of transactions by reserving the rights.
Bitcoin has been a topical issue in the recent financial news, not only for its
recently inflated value, but also because digital currency transactions can
offer higher levels of security. Cryptocurrencies are complex because they only
exist abstractly. Defining feature of Cryptocurrencies is the way of
transactions processed between users.

Like
in real life, The Wallet must be secured. Bitcoin allows owners to be in control
of their money therefore makes it possible to transfer value anywhere in a
simple way. Such great features also come with great security concerns. At the
same time, Bitcoin can provide very high levels of security if used correctly.
It is owners’ responsibilities to adopt good practices in order the protect
their funds.

Any
transaction issued with Bitcoin cannot be reversed, they can only be refunded
by the person receiving the funds. Bitcoin can detect typos and usually does
not let applicant send money to an invalid address by mistake. Additional
services might exist in the future to provide more choice and protection for
the consumer.

Some
effort is required to protect your privacy with Bitcoin. All Bitcoin
transactions are stored publicly and permanently on the network thus anyone can
see the balance and transactions of any Bitcoin address. However, the identity
of the user behind an address remains unknown until information is revealed
during a purchase or in other circumstances. This is the main reason why Owners
must use Bitcoin addresses only once.