-
Bitcoin $103,456.1111
0.49% - Ethereum
$2,414.9631
0.02% - Tether USDt
$1.0006
0.05% - XRP
$2.1083
0.24% - BNB
$634.8760
-0.76% - Solana
$139.8437
1.94% - USDC
$0.9998
-0.01% - TRON
$0.2737
0.97% - Dogecoin
$0.1602
0.20% - Cardano
$0.5737
1.08% - Hyperliquid
$32.9779
-2.54% - Bitcoin Cash
$474.8886
-1.80% - Sui
$2.6272
-1.99% - Chainlink
$12.4878
0.14% - UNUS SED LEO
$8.9234
0.35% - Stellar
$0.2411
-0.18% - Avalanche
$17.0274
-0.70% - Toncoin
$2.8936
-1.11% - Shiba Inu
$0.0...01112
-0.58% - Litecoin
$82.6982
1.33% - Hedera
$0.1423
-0.05% - Monero
$314.8455
3.26% - Ethena USDe
$1.0006
0.01% - Polkadot
$3.4043
1.14% - Dai
$0.9999
0.01% - Bitget Token
$4.2848
-0.13% - Uniswap
$6.8748
-5.45% - Pepe
$0.0...09661
0.52% - Pi
$0.5359
1.19% - Aave
$242.9168
-1.03%
how bitcoin function
In Bitcoin's decentralized network, transactions are verified by independent "miners" and permanently recorded on an immutable public ledger called the blockchain.
Oct 09, 2024 at 08:18 am
How Bitcoin Functions
Bitcoin is a decentralized digital currency that is not subject to government or financial institution control. Instead, it operates on a peer-to-peer network, where transactions are verified and recorded on a public ledger called the blockchain. Here's how Bitcoin works:
1. Mining:
- Bitcoin miners use specialized computers to solve complex mathematical equations.
- When a miner solves an equation, they are rewarded with newly minted Bitcoins.
- Mining also verifies transactions and adds them to the blockchain.
2. Transactions:
- When a user wants to send Bitcoin, they broadcast a transaction to the network.
- Miners verify the transaction and add it to a block of transactions.
- The block is then added to the blockchain.
3. Blockchain:
- The blockchain is a public ledger that records all Bitcoin transactions.
- Each block contains a hash of the previous block, creating an immutable chain of records.
- This makes it extremely difficult to tamper with or counterfeit transactions.
4. Decentralization:
- Bitcoin is not controlled by any central authority.
- The network is maintained by a vast number of nodes, which are computers or servers running the Bitcoin software.
- This decentralized nature gives Bitcoin its resilience and security.
5. Security:
- Bitcoin transactions are secured using cryptography.
- Each transaction is encrypted with the sender's private key and verified by the recipient's public key.
- The blockchain also provides an additional layer of security, as it is nearly impossible to alter past transactions.
6. Scarcity:
- The Bitcoin protocol limits the total supply to 21 million.
- This scarcity helps to control inflation and maintain the long-term value of Bitcoin.
7. Wallets:
- Users store their Bitcoins in digital wallets.
- Wallets can be software programs, apps, or hardware devices.
- They allow users to access their Bitcoin, perform transactions, and manage their balance.
Conclusion:
Bitcoin functions through a decentralized network, cryptography, and a public ledger. It is designed to be secure, scarce, and resistant to manipulation or counterfeiting. As a result, Bitcoin is gaining popularity as a digital store of value and a means of exchange.
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