Can you explain how bitcoin operates?

3 answers

• Dec 27, 2021 · 3 years ago
  Bitcoin operates on a decentralized network called blockchain, which is a public ledger that records all transactions. When a transaction is made, it is verified by network nodes through cryptography. These verified transactions are then added to a block, which is appended to the blockchain. Miners compete to solve complex mathematical problems to validate transactions and add blocks to the blockchain. This process ensures the security and integrity of the Bitcoin network.
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• Dec 27, 2021 · 3 years ago
  Bitcoin operates by using a peer-to-peer network, meaning that transactions are directly between users without the need for intermediaries like banks. Each user has a unique digital wallet that contains their private keys, which are used to sign and verify transactions. These transactions are broadcasted to the network and included in blocks that are added to the blockchain. The decentralized nature of Bitcoin ensures transparency and immutability of transactions.
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• Dec 27, 2021 · 3 years ago
  Bitcoin operates on a decentralized network, which means that no single entity or organization controls it. This makes Bitcoin resistant to censorship and manipulation. The network is maintained by a community of miners who use specialized hardware to solve complex mathematical problems. In return for their efforts, miners are rewarded with newly minted bitcoins. This process, known as mining, also ensures the security and integrity of the network. As a digital currency, Bitcoin can be used for online transactions and as a store of value, similar to gold.
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