How can I understand the functioning of bitcoin?

3 answers

• Dec 19, 2021 · 3 years ago
  Sure! Think of bitcoin as a digital currency that operates on a decentralized network called the blockchain. When you send or receive bitcoin, the transaction is recorded on the blockchain, which is a public ledger. Miners validate and confirm these transactions, ensuring their accuracy and security. This decentralized nature of bitcoin eliminates the need for intermediaries like banks. It also offers transparency and immutability, making it difficult to manipulate or counterfeit. Overall, bitcoin functions as a secure and transparent digital currency that allows peer-to-peer transactions without the need for a central authority.
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• Dec 19, 2021 · 3 years ago
  Understanding bitcoin can be overwhelming at first, but let me break it down for you. Bitcoin is like digital cash that you can send and receive online. Instead of relying on banks or governments, it operates on a technology called blockchain. This blockchain is a public ledger that records all bitcoin transactions. Miners, who are individuals or groups with powerful computers, validate and add these transactions to the blockchain. This process ensures the security and integrity of the bitcoin network. So, in simple terms, bitcoin functions as a decentralized digital currency that allows secure and transparent transactions without the need for intermediaries.
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• Dec 19, 2021 · 3 years ago
  Bitcoin's functioning can be explained by understanding its core principles. It is based on a technology called blockchain, which is a decentralized and transparent ledger. When you make a bitcoin transaction, it gets added to a block, which is then added to the blockchain by miners. These miners solve complex mathematical problems to validate and secure the transactions. This process ensures the integrity and immutability of the bitcoin network. Additionally, bitcoin has a limited supply, with only 21 million bitcoins that can ever exist. This scarcity adds value to the cryptocurrency. Overall, bitcoin functions as a decentralized and secure digital currency that operates on the principles of blockchain technology.
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