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    How Does Bitcoin Work?
    Bitcoin

    How Does Bitcoin Work?

    By Crypto EditorJanuary 22, 2025No Comments1 Min Read
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    How Does Bitcoin Work?
    The Capital

    Bitcoin operates on a decentralized system powered by blockchain expertise. Right here’s a step-by-step clarification of the way it works:

    On the coronary heart of Bitcoin is a expertise referred to as the blockchain, a public ledger that data all Bitcoin transactions. It’s:

    Decentralized: Saved and maintained throughout a community of computer systems (nodes) worldwide.

    Clear: Anybody can view the transaction historical past.

    Immutable: As soon as a transaction is recorded, it can’t be altered or deleted.

    When somebody sends Bitcoin, the transaction entails:

    Sender’s Non-public Key: The sender indicators the transaction with their non-public key to show possession of the Bitcoin being despatched.

    Recipient’s Tackle: Bitcoin is shipped to the recipient’s public deal with, a novel identifier on the blockchain.

    Verification: The transaction is broadcast to the Bitcoin community for verification.

    Bitcoin transactions are validated and added to the blockchain by a course of referred to as mining:



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