Security Architecture and Services for The Bitcoin System

Abstract

Bitcoin is a digital currency which is based on P2P network and open source software. It is avirtual currency without any control by any centralized organization. New Bitcoins are issuedby lots of specified algorithms. The whole Bitcoin network utilizes the distributed database toverify and record all the transactions through the nodes in the P2P network in which thedouble spending is prevented. No person or organization is able to control Bitcoin based on adecentralized P2P network and algorithm. The cryptographic functions of Bitcoin are designedto allow only the real Bitcoin owner to pay and transfer, and ensure the anonymity andmarketability.The purpose of this thesis is to analyze the security architecture and services for the Bitcoin system and describe of all the features and infrastructures of the whole Bitcoin network. A whole establishment demo including wallet client, mining server with GUI and mining client is implemented. Further improvement will be suggested and recommended for the system