How does Bitcoin work? This question often causes confusion and stir. Here's a quick description!

in #bitcoin3 years ago

Basics for new users

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As a new user, without understanding the technical information you can get started Bitcoin If you install Bitcoin wallet on your computer or mobile phone, this will generate your first Bitcoin address and you can create more when you need it. You can tell your friends your address so that you can pay them or they can pay you. In fact, it works like email, the difference is that the address can be used only once.

Balance - Block series

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The block chain shares the public share book on which the entire Bitcoin network relies. All confirmed transactions are included in the block chain. In this way, Bitcoin Wallet can calculate the amount that can be spent and new transactions can be verified to know how many bitcoins are actually owned by the expense maker. Integrity of block chains and serial order encryption To apply.

Transaction - private key

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Transactions are the transfer of value between bitcoin wallets, which are joined in the block chain. Bitcoin Wallet keeps secret data which is called private key or seed which is used to sign the transaction, giving evidence that it has come from the owner's wallet. Once the signature is issued, the transaction prevents it from being changed by anyone. All transactions are transmitted between users and within 10 minutes the confirmation begins within the network, through the process called mining.

Processing - Mining

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Mining / Mining is a Distributed Compatibility System which, by confirming the canceled transaction, involves them in the Block Chain. It imposes orderly orders in block chains, protects the neutrality of the network, and allows various computers to agree on system state. The transaction should be packaged to confirm that in the block which fits in very strict cryptographic rules and will be verified by that network. These rules prevent previous blocks from being modified because doing so will block all the following blocks. Mines compete with the competitive lottery that prevents any person from easily connecting the new block to the syllabus in the block series. In this way, no one can control what is included in the block series, or change the place of parts of the block chain to roll back its own expense.

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