How does bitcoin work?

3 answers

• Dec 19, 2021 · 3 years ago
  Sure! Bitcoin is a decentralized digital currency that operates on a technology called blockchain. It allows users to send and receive payments without the need for a central authority, such as a bank. Transactions are recorded on the blockchain, which is a public ledger that is maintained by a network of computers called miners. Miners validate and confirm transactions by solving complex mathematical problems. Once a transaction is confirmed, it is added to a block and linked to the previous blocks, creating a chain of blocks, hence the name blockchain. This ensures the security and immutability of the transactions.
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• Dec 19, 2021 · 3 years ago
  Bitcoin works by using a peer-to-peer network, where transactions are verified by participants in the network rather than a central authority. This makes it resistant to censorship and fraud. Each transaction is encrypted and broadcasted to the network, where miners compete to solve the mathematical problem associated with the transaction. The first miner to solve the problem gets to add the transaction to the blockchain and is rewarded with newly minted bitcoins. This process is known as mining. The blockchain is constantly growing as new transactions are added, and it serves as a transparent and tamper-proof record of all bitcoin transactions.
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• Dec 19, 2021 · 3 years ago
  Bitcoin works through a decentralized network of computers that collectively maintain the blockchain. When a user wants to send bitcoins to another user, they create a transaction and broadcast it to the network. Miners then verify the transaction by solving a complex mathematical problem, and once verified, the transaction is added to a block. This block is then added to the blockchain, which is a public ledger that contains a record of all transactions. The decentralized nature of bitcoin ensures that no single entity has control over the network, making it secure and resistant to censorship.
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