What's Bitcoin? How does Bitcoin work?

What is Bitcoin?

Bitcoin is a decentralized peer-to-peer digital currency that is issued based on a specific algorithm and does not rely on any central authority or intermediary.

How does Bitcoin work?

The Bitcoin network shares a public ledger called a "blockchain". This ledger contains every transaction that has been processed and allows the user's computer to verify the validity of each transaction. The authenticity of each transaction is protected by a digital signature corresponding to the sending address, giving all users full control over sending bitcoins from their own bitcoin address. In addition, anyone can use the computing power of specialized hardware to process transactions and be rewarded with Bitcoin for this service. This is commonly referred to as "mining".

What is a blockchain?

A blockchain is a digital ledger in which transactions in bitcoin or other cryptocurrencies are synchronized and publicly recorded.