How Does BITCOIN Work?
What is Bitcoin?
This form of currency operates independently of a central bank, maintaining records of transactions and generating new units of currency through mathematical computation.
How Does Bitcoin Work?
Each bitcoin is a file stored in a digital wallet on a computer or smartphone. To understand how cryptocurrency works, swipe the slides.
Blockchain
Bitcoin is powered by open source code known as the Blockchain, which creates a shared public history of transactions organized into “Blocks” that are “Chained” together to prevent tampering.
Blockchain Technology
This technology creates a permanent record of each transaction, and it provides a way for every bitcoin user to operate with the same understanding of who owns what.
Private & Public Keys
This works together to allow the owner to initiate and digitally sign transactions. This unlocks the central function of bitcoin – Securely transferring ownership from one user to another.
Bitcoin Mining
Each bitcoin transaction is independently confirmed by bitcoin miners, who add a completed Block of transactions to the chain, which has a permanent record of every bitcoin transaction.
How Bitcoin Makes Money?
New bitcoins are created as part of the bitcoin mining process. They are offered as a lucrative reward to people who operate computer systems that help validate transactions.
How Do People Get Bitcoins?
When you receive bitcoins, you get a private key, like a password, that allows you to transfer them to someone else.
Why Are Bitcoins Valuable?
Is It Safe?
Cold storage (or offline wallets) is one of the safest methods for holding bitcoin, as these wallets or not accessible via the internet, but hot wallets or still convenient for some users.
If you want to learn more on bitcoin and blockchain, do read our extensive blog.