0:58
novice
June 13, 2022
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how does bitcoin work?

Bitcoin (BTC) is a digital currency that does not rely on central authorities like banks or governments. On the other hand, BTC relies on a peer-to-peer (P2P) internet network to confirm purchases between users. BTC was the first and most valuable entrant in the new class of assets known as cryptocurrencies, having been launched in 2009 by a mysterious creator known as Satoshi Nakamoto.

BTC is based on blockchain, an open-source programme that provides a shared public history of transactions grouped into “blocks” that are “chained” together to avoid manipulation. This system keeps a permanent record of every transaction and allows all BTC users to work with the same idea of who owns what.

A BTC wallet has a public key and a private key that allow the owner to begin and sign transactions digitally. This enables BTC's most important feature: safely transferring ownership from one user to another.

Users on the BTC network verify transactions using mining, which is designed to ensure that new transactions are consistent with previously completed transactions. This prevents you from spending a BTC that you don’t have or have already spent.

BTC's main function is in P2P payments: a decentralised way of sending money. Users can ensure their payments are processed and verified using BTC and smart contracts, a self-executing code between buyer and seller being directly written into lines of the contract.

*The content hereby presented is for informational purposes only. Nothing of this content that is available to you shall be considered as financial, legal or tax advice. Please, keep in mind that trading cryptocurrencies pose a considerable risk of loss.

*The content hereby presented is for informational purposes only. Nothing of this content that is available to you shall be considered as financial, legal or tax advice. Please, keep in mind that trading cryptocurrencies pose a considerable risk of loss.

how does bitcoin work?

Bitcoin (BTC) is a digital currency that does not rely on central authorities like banks or governments. On the other hand, BTC relies on a peer-to-peer (P2P) internet network to confirm purchases between users. BTC was the first and most valuable entrant in the new class of assets known as cryptocurrencies, having been launched in 2009 by a mysterious creator known as Satoshi Nakamoto.

BTC is based on blockchain, an open-source programme that provides a shared public history of transactions grouped into “blocks” that are “chained” together to avoid manipulation. This system keeps a permanent record of every transaction and allows all BTC users to work with the same idea of who owns what.

A BTC wallet has a public key and a private key that allow the owner to begin and sign transactions digitally. This enables BTC's most important feature: safely transferring ownership from one user to another.

Users on the BTC network verify transactions using mining, which is designed to ensure that new transactions are consistent with previously completed transactions. This prevents you from spending a BTC that you don’t have or have already spent.

BTC's main function is in P2P payments: a decentralised way of sending money. Users can ensure their payments are processed and verified using BTC and smart contracts, a self-executing code between buyer and seller being directly written into lines of the contract.

*The content hereby presented is for informational purposes only. Nothing of this content that is available to you shall be considered as financial, legal or tax advice. Please, keep in mind that trading cryptocurrencies pose a considerable risk of loss.

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June 13, 2022
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