What are the basics of how bitcoin works?

3 answers

• Dec 17, 2021 · 3 years ago
  Sure! Bitcoin is a decentralized digital currency that operates on a technology called blockchain. It allows for peer-to-peer transactions without the need for intermediaries like banks. Transactions are verified by network nodes through cryptography and recorded on a public ledger. This ledger ensures transparency and security. Miners solve complex mathematical problems to validate transactions and add them to the blockchain. Bitcoin's limited supply and decentralized nature make it resistant to inflation and censorship. It has gained popularity as a store of value and a medium of exchange in the digital world.
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• Dec 17, 2021 · 3 years ago
  Bitcoin works by utilizing a decentralized network of computers called nodes. These nodes maintain a copy of the blockchain, which is a public ledger that records all bitcoin transactions. When a user initiates a transaction, it is broadcasted to the network. Miners then compete to solve a mathematical puzzle, and the first miner to solve it adds the transaction to a block. This block is then added to the blockchain, making the transaction permanent and immutable. The decentralized nature of bitcoin ensures that no single entity has control over the network, making it resistant to censorship and manipulation.
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• Dec 17, 2021 · 3 years ago
  From what I understand, bitcoin works by utilizing a technology called blockchain. It's like a digital ledger that keeps track of all bitcoin transactions. When someone wants to send bitcoin to another person, they create a transaction and sign it with their private key. This transaction is then broadcasted to the network, where miners verify its validity. Once the transaction is verified, it gets added to a block, which is then added to the blockchain. This process ensures that every transaction is transparent and secure. Bitcoin's decentralized nature and limited supply make it an attractive alternative to traditional currencies.
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