Spirit Magazine - April 2014 - (Page 62)

Business systems of money that use encryption to secure transactions. It's also important to note that Bitcoin is in its infancy, and while it may not be ready for prime time, many believe it will eventually change the way we all pay for goods and services. best brews Enjoy local craft beer fresh from the tap at participating Four Points hotels around the world. Book this package and enjoy two on us every day of your stay. Fourpoints.com/bestbrews ©2012-2014 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. Preferred Guest, SPG, Four Points and their logos are the trademarks of Starwood Hotels & Resorts Worldwide, Inc., or its affiliates. For complete terms and conditions of this offer, visit fourpoints.com/bestbrews. Service of alcohol subject to state or provincial and local laws. Must be of legal drinking age. THE VIRTUAL BUCK STARTS HERE In 2009, someone (or a group of people) working under the name Satoshi Nakamoto released a software system that allowed individuals to securely and directly pay one another with a digital currency. It's worth reiterating the "securely and directly" part because in computer science, there had been a long-standing problem called "double spending" that made it impossible to know whether someone duplicated and double spent electronic cash unless a third party (e.g., a bank) verified it. Bitcoin solved that problem by using an "open source distributed system," which means you can, in theory, recoup bitcoins loaned to a co-worker during lunch without waiting for the bank to confirm she's good for it. That's because the system simply won't allow her to spend a bitcoin she doesn't have. As bitcoins are spent, transactions are grouped into blocks and entered into a sort of giant, virtual bank ledger called the "blockchain." Those blockchain transactions are verified by a huge network of people called "miners." In order for a miner to verify a block of transactions, he or she must first gain access to it. Each block is locked behind an extremely complex password, and miners use high-powered computers to run the complex calculations that lead to correct passwords. When a block is unlocked, a new bitcoin is released into circulation. So miners act as both bookkeepers and currency producers, and they're The complex passwords miners are required to break in order to hatch new bitcoins are designed to be increasingly complicated. compensated in bitcoins (about 25 for every block they unlock). There is a finite supply of bitcoins-21 million-and the complex passwords miners are required to break in order to hatch new ones are designed to be increasingly complicated. Nakamoto created it that way, so that the supply increases gradually. (Nakamoto also designed the system to produce a maximum of 25 bitcoins every 10 minutes, another control measure.) BITCOIN AND YOU Now that you (kind of) understand the Bitcoin system, perhaps you want to use it. First, you have to buy bitcoins, much like you'd need to buy pesos if you went to Mexico. In this case, rather than hitting the airport exchange booth, you'll need to purchase a bitcoin wallet-computer software that allows you to store, spend, and receive bitcoins on your mobile device or computer-from a site like Blockchain.info. Then you'll need to fill it with bitcoins purchased from a site like Coinbase.com. Or, if you're in Austin, Texas, where America's first bitcoin ATM is located, you could exchange your cash for bitcoins much like you would withdraw funds with your debit card. http://www.FOURPOINTS.COM/BESTBREWS http://www.FOURPOINTS.COM/BESTBREWS http://www.FOURPOINTS.COM/BESTBREWS http://www.Blockchain.info http://www.Coinbase.com http://www.fourpoints.com/bestbrews

Table of Contents for the Digital Edition of Spirit Magazine - April 2014

Spirit Magazine - April 2014
Contents
Gary’s Greeting
Gary’s Greeting en Español
Star of the Month
Freedom Story
From the Editor
Your Words
Your Pictures
Media Center
Eat Drink Sleep
Rustle up ribs
shake up a summer sipper
Wise Guide
Take better snaps
Make finance a family affair
Numbers
Make time for sweets
Learn from the Bard
Business
Zen out with Russell Simmons
Store more on your iPhone
Chasing Beautiful Questions
Connection Error
Get out of your social comfort zone
Your Adventure In Santa Fe
Destination Texas
Calendar
Fun!
Spotlight
Community Outreach
Products & Services
Flight Service
Terminal Maps
Information
Rapid Rewards and A+ Rewards Partners
Route Map
The "If" List
Touch base with Tracy Morgan

Spirit Magazine - April 2014