What is Bitcoin and How it work?
Bitcoin is a form of digital currency that is secured using encryption and is not regulated by any central bank or government. The creator(s), who only went by the alias “Satoshi Nakamoto,” are still a mystery as of 2009.
Bitcoin allows for anonymous, near-instantaneous transactions between users by using a system of private and public keys. If you wish to receive Bitcoin from others, you’ll need to provide them your public key, which is essentially an address for your Bitcoin wallet. To access and spend Bitcoin stored in a wallet, its owner needs to know its private key.
Any time a purchase is made, the transaction is broadcast to the network and confirmed by nodes using sophisticated algorithms. Upon confirmation, the exchange is added to the blockchain, a public and decentralized database that records all Bitcoin exchanges. Blockchain technology guarantees that all transactions are complete and recorded in chronological sequence, making it impossible to change or remove any previous transactions.
Bitcoin’s ability to facilitate transactions between individuals directly, without the intervention of a bank or other centralized institution, is one of its primary selling points. Thus, Bitcoin transactions can be made directly between users, bypassing the necessity for a third party such as a bank.
