What is a Bitcoin Faucet?

What is a Bitcoin Faucet?

A Bitcoin Faucet is a reward system, in the form of a website or app, that dispenses bitcoin for visitors to claim in exchange for completing a captcha or task as described by the website. The term faucet is used as a reference to a tap or valve for turning on the flow of free bitcoins.

Nothing is Free

In the early days of Bitcoin, faucets began as a learning mechanism to incentivize new users to download a bitcoin wallet to accept and experiment with some bitcoin. As a first point of contact with bitcoin, new users could paste a bitcoin public key and receive small amounts of bitcoin such as 1000 satoshis for free.

After their debut, it didn’t take long before hackers programmed bot scripts that would outsmart these websites by automatically creating hundreds or even thousands of public keys to receive small amounts of bitcoin and after a while all of these micro donations would add up to a pretty substantial amounts of bitcoin.

Bitcoin faucets have since evolved into a service for mining personal information for advertisers. The more primitive faucets require simple actions from the user like viewing a short video ad, becoming a member, join their mailing list or sometimes by clicking on an ad to a specific website. More advanced faucets will vet their users and only “give” away the bitcoin if you are a member of their target audience.

The Most Addicting Bitcoin Faucet

Bit Kong
Most bitcoin faucets are nothing more than spammy flash in the pan type sites that offer no long term value for the end user which is why most of them die off after a while.

Some faucets can see the big picture and have found ways to keep their users coming back such as BitKong, a popular bitcoin gambling site that allows you to place simple wagers as you climb a ladder to win up to 10 bitcoins. BitKong offers up to 2000 free satoshis every 10 minutes (up to 50 times per user) with the hope that you will deposit more bitcoin and keep playing. In fact they tote themselves as “The Most Addictive Bitcoin Game Ever” and judging by their numbers, they just might be the most successful bitcoin faucet ever.

What is a bitcoin term that you would like us to further define for you? Let us know with a comment below or a tweet @WhatIsBitcoin.

Donate Bitcoin

Who is Satoshi Nakamoto?

Who is Satoshi Nakamoto?

Satoshi Nakamoto is the founder of Bitcoin and initial creator of the original Bitcoin client. He has said in a P2P foundation profile that he is from Japan. Beyond that, not much else is known about him or his identity. He has been working on the Bitcoin project since 2007. The smallest unit of measure in bitcoin has been named in honor of Satoshi.

The Search for Satoshi Nakamoto

In November of 2009, Satoshi created one of the most disruptive experiments in human history when he published a white paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System”. This new design would allow two (or more) parties to transact value without the need for a trusted third party. This has immense implications for global trade but the trusted third parties that have been in the middle of every financial transaction for centuries are not so happy about such an invention. This puts has put Satoshi at the top of the wanted list of the legacy banking cartels.

When Satoshi published this paper, he published a model that would change the world forever. The world finally had a mechanism for people and institutions to create privately issued money but even more importantly, bitcoin was the blueprint for creating bits of information that cannot be duplicated or counterfeit. This is why bitcoin is capable of functioning as money. Satoshi’s new invention will create a number of problems for governments and banks around the world which is likely why he has kept his identity a secret.

Ever since bitcoin has found its use as a safe haven asset around the world, Satoshi has gone into hiding and the search for his true identity continues.

Dorian Nakamoto

In 2013, Newsweek received some sort of anonymous tip that a man named Dorian Nakamoto was living in California and was remotely associated with some sort of cryptographic work for the government a couple years prior. Thanks to today’s poor journalism and everyone’s lust to be the first to publish a story, Dorian was dragged into the spotlight as being Satoshi Nakamoto. It was later proven false but Dorian’s face is still often used in bitcoin memes. There was even an art piece auctioned off to help him and his family with legal damage created by Newsweek’s careless “journalism”.

Craig Wright

In December of 2015, the search for Satoshi seemed to take yet another turn when an Australian computer scientist named Craig Wright was outed as being Satoshi. It didn’t take long for freelance journalists to swarm his Brisbane residence to completely invade his privacy looking for answers. Since he has fallen into the public spotlight, he has actually made claims that he is in fact Satoshi Nakamoto only to be mathematically eliminated as a fraud for not supplying a key signature that Satoshi is known to control. In short, he’s a fraud.

Conspiracy Theories

Since nobody knows Satoshi’s real identity or background, there have been a number of conspiracy theories that have surfaced. Some theories suggest that he is a member of the new world order and published bitcoin to create a one world money that the NWO will use to control the entire planet while other theories suggest that he is a former government employee who went rogue and released a cryptographic software system that the government had been using for years called “blockchain”. We may never know for sure but the search will likely continue as long as some people still care.

Satoshi is part of the New World Order

One of the first conspiracy theories was that Satoshi is actually a consortium of bankers who are working to establish a new world order. The anonymous creator is not actually a single individual but rather a group of banksters who published the bitcoin white paper to establish a global control of money and unleash the mark of the beast on the world. This is likely not the case since the bitcoin code is open source for all to view and can be changed. This makes it very difficult to control by any central power.

Satoshi is a former NSA Employee

Another Conspiracy theory is that Satoshi was working for the NSA and had been part of a project that was using a technology that was incredibly secure because it wasn’t centralized and required very complex cryptography to operate. Satoshi stole this model and altered it so that it could be used by the people rather than being monopolized by the government. After he figured out a feasible way to make it work as a peer-to-peer network, he published the Bitcoin White Paper to get some tech experts to fine tune it. Ever since it began to catch on, Satoshi has been forced into hiding for fear of being exposed and sentenced to torture or even death.

These are only a couple conspiracies but as time goes on, there will only be more crazy ideas that get added to the mix. Check back here from time to time to learn more about Satoshi Nakamoto.

What is a bitcoin term that you would like us to further define for you? Let us know with a comment below or a tweet @DefineBitcoin.

Donate Bitcoin

What is a Satoshi?

A Satoshi is the smallest fraction of a bitcoin that can currently be sent: 0.00000001 BTC, that is, a hundred millionth BTC. In the future, however, the protocol may be updated to allow further subdivisions, should they be needed.

Bitcoin Divisibility

A single bitcoin can be divided out to 8 decimal places or into 100 million (100,000,000) smaller units. As you may have guessed, this can create some confusion when it comes to denominating bitcoin for making smaller purchases. For instance, buying a cup of coffee at Starbucks for $3.50 would be 0.00346421 BTC (at today’s bitcoin price) or 346,421 satoshi. In an attempt to reduce this kind of confusion and increase user adoption, four primary denominations of bitcoin have emerged; Bitcoins (BTC), MilliBits (mBTC), Bits (µBTC) and Satoshis (s).

1 BTC = 1.00000000 Bitcoin = 1,000.00000 mBTC = 1,000,000.00 µBTC = 100,000,000 satoshi.

BTC

A bitcoin is the largest denomination within the bitcoin space as it denotes one entire bitcoin. This is primarily used for quoting prices of goods and services with a price that is equal to or greater than 1 bitcoin. Think of things like cars, computers or even houses to be purchased with entire bitcoins. It isn’t common to use these

mBTC

MilliBit is the second largest denomination of bitcoin at 1/1000 of an entire bitcoin. With the current price right around $1,000 USD a millibit seems to be a very popular option since 1 millibit is about $1. So a $3.50 cup of coffee would be about 3.5 mBTC.

If 1 Bitcoin is worth $1,000 then 1 mBTC is worth $1 because a millibit is 1/1000 of an entire bitcoin. This allows users to send amounts of bitcoin using whole numbers rather than carrying numbers out several decimal places. That $3.50 cup of coffee would be 3.5 mBTC. You can see how this makes it quite a bit less confusing to spend bitcoin on a daily basis.

µBTC

Micro bitcoins or more commonly known as “bits” are one millionth (1/1,000,000) of a bitcoin. Bits are also a very common denomination of bitcoin around the world because fiat currencies are not all equal to one US dollar so dealing in bits allows for an easy common denomination between multiple countries and currencies. 1 Mexican Peso is worth less than 1 US Dollar and 1 Japanese Yen is worth less than 1 Mexican Peso so dealing with bits between all of these currencies allows for a common unit of measure and still deal in whole numbers.

Satoshi

The term “Satoshi” was coined back in 2010 in tribute to the creator of the bitcoin protocol, Satoshi Nakamoto. Satoshi as a unit of measure is not very common because it is so small but the word satoshi is used all over the bitcoin space. SatoshiDice is a gambling site that helped bitcoin to gain traction in its early days by providing provably fair gambling online. SatoshiGallery is an Italian artist based in the UK who creates bitcoin related art. Some websites called bitcoin faucets will give away satoshis or even bits for completing certain tasks or viewing ads. If you do any looking you will find the word Satoshi used all over the bitcoin space.

Follow @DefineBitcoin on Twitter and Instagram for the most up to date bitcoin related definitions and media content.

What is a bitcoin term that you would like us to further define for you? Let us know with a comment below or a tweet @DefineBitcoin.

Donate Bitcoin