Bitcoin is a decentralized digital currency system known as cryptocurrency. This system was discovered in 2008 by a person or group using the pseudonym #Satoshi Nakamoto. The working principle of Bitcoin is based on a distributed ledger called blockchain.
The basic building block of Bitcoin is a ledger, called a blockchain, maintained on a decentralized network. This blockchain is a database where all Bitcoin transactions are recorded and verified. Transactions are verified and added into blocks by Bitcoin miners, which have a distributed network.
Bitcoin miners solve mathematical problems that require high processing power to verify transactions and create blocks. Solving these problems ensures the security of the network and ensures the proper functioning of Bitcoin. After verifying transactions, miners create a new block and add it to the blockchain.
The working principle of Bitcoin works by ensuring consensus among all participants in the network. Agreement must be reached between participants to verify transactions and add new blocks. This agreement mechanism is built on a system called Proof of Work (PoW). #PoW is an energy-intensive process and gives miners new Bitcoin as a reward, while ensuring the security of the network.
The working logic of Bitcoin is to ensure verification and transactions without the need for a central authority. This makes Bitcoin different from traditional financial systems. Bitcoin has a limited supply, which affects its value.
In conclusion, #Bitcoin is a decentralized digital currency built on blockchain technology. Verification of transactions, creation of new blocks and security of the network are provided by Bitcoin miners in a distributed network. The basic principles of Bitcoin are security, privacy and decentralization. With these features, Bitcoin offers an alternative option to financial systems.
