Can you explain how bitcoin works?

3 answers

• Nov 28, 2021 · 3 years ago
  Bitcoin is a decentralized digital currency that operates on a technology called blockchain. Transactions are recorded on a public ledger and verified by network nodes through cryptography. This ensures the security and integrity of the system. When a transaction is made, it is broadcasted to the network and included in a block. Miners compete to solve complex mathematical problems to validate the block and add it to the blockchain. Once a block is added, the transaction is considered confirmed. Bitcoin transactions are pseudonymous, meaning they are not directly linked to real-world identities. This provides a certain level of privacy. However, the blockchain is transparent, allowing anyone to view transaction details. Overall, bitcoin offers a decentralized and secure way to transfer value without the need for intermediaries like banks.
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• Nov 28, 2021 · 3 years ago
  Bitcoin works by utilizing a technology called blockchain, which is a decentralized ledger that records all transactions. When someone sends bitcoin to another person, the transaction is broadcasted to the network and added to a pool of unconfirmed transactions. Miners then compete to solve complex mathematical puzzles to validate the transactions and add them to a block. Once a block is added, it is linked to the previous blocks, forming a chain of blocks or the blockchain. This ensures the immutability and security of the transactions. Bitcoin also relies on cryptography to secure the network and prevent double-spending. The decentralized nature of bitcoin eliminates the need for a central authority, making it resistant to censorship and control. It offers a transparent and efficient way to transfer value globally.
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• Nov 28, 2021 · 3 years ago
  Bitcoin is a digital currency that operates on a decentralized network called blockchain. It allows users to send and receive payments without the need for intermediaries. When a transaction is initiated, it is broadcasted to the network and verified by miners. Miners use their computational power to solve complex mathematical problems, which helps secure the network and validate transactions. Once a transaction is confirmed, it is added to a block and becomes a part of the blockchain. Bitcoin transactions are pseudonymous, meaning they are not directly linked to real-world identities. This provides a certain level of privacy. Bitcoin's decentralized nature and cryptographic security make it a popular choice for those seeking financial freedom and control over their own money.
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