What are the basic principles of how bitcoin works?

3 answers

• Dec 29, 2021 · 3 years ago
  Sure! Bitcoin operates on a decentralized network called blockchain, where transactions are recorded and verified by multiple computers called nodes. This ensures transparency and security. Each transaction is grouped into a block and added to the blockchain through a process called mining. Miners use powerful computers to solve complex mathematical problems, and the first miner to solve the problem gets rewarded with newly created bitcoins. This process also helps maintain the integrity of the blockchain. So, in summary, bitcoin works by using blockchain technology to enable secure and transparent peer-to-peer transactions.
  632316
• Dec 29, 2021 · 3 years ago
  Bitcoin, my friend, is a digital currency that operates on a decentralized network. It's like a virtual gold, but instead of being controlled by a central authority, it's managed by a network of computers spread across the globe. These computers, or nodes, work together to verify and record transactions in a public ledger called the blockchain. This makes bitcoin transactions secure, transparent, and resistant to censorship. So, the basic principles of how bitcoin works are decentralization, transparency, and security. It's a revolution in the world of finance, my friend!
  578193
• Dec 29, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, can shed some light on this. Bitcoin operates on a decentralized network called blockchain, where transactions are recorded and verified by multiple computers called nodes. This ensures transparency and security. Each transaction is grouped into a block and added to the blockchain through a process called mining. Miners use powerful computers to solve complex mathematical problems, and the first miner to solve the problem gets rewarded with newly created bitcoins. This process also helps maintain the integrity of the blockchain. So, in summary, bitcoin works by using blockchain technology to enable secure and transparent peer-to-peer transactions.
  697175