What is Bitcoin and how does it work

What is Bitcoin and how does it work


What is Bitcoin and how does it work

Bitcoin isa cryptocurrency that exists electronically and does not have any physical form. It was created in 2009 by an unknown person or group of people under the pseudonym Satoshi Nakamoto. One of the main advantages of Bitcoin is its decentralized nature. Bitcoins are not stored on a centralized server, but are stored on computers around the world, making them more resistant to tampering.

The way bitcoin works is that every transaction that takes place with bitcoins is recorded in a global database known as the blockchain. This blockchain stores information about all transactions that take place with bitcoins and ensures their security and stability.


What is Bitcoin and how does it work

In order to transact with bitcoins, a user must have a private key that allows them to manage their bitcoins and a public key that allows them to receive bitcoins. The transaction is carried out by signing a digital signature with a private key and sending the transaction to the network. After that, the transaction is checked by all computers in the network, which allows you to confirm its validity and ensure its security.

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Date: 2024/03/22

Author: GEximius


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