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Introduction Bitcoin (BTC) is the first and most well-known cryptocurrency, revolutionizing the global financial system with its decentralized nature and blockchain technology. Created by an anonymous entity known as Satoshi Nakamoto in 2008, Bitcoin has since grown into a store of value, a medium of exchange, and a topic of major interest for both individuals and institutions.
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What is Bitcoin?
Bitcoin is a digital currency that allows peer-to-peer transactions over a decentralized network. Unlike traditional fiat currencies, Bitcoin is not controlled by any government, central bank, or institution. It operates on a technology called blockchain, which is a public, distributed ledger recording all Bitcoin transactions.
Symbol: BTC
Supply Limit: 21 million coins (ensuring scarcity)
Launch Date: January 2009
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How Bitcoin Works
Bitcoin operates on blockchain technology, a decentralized ledger where every transaction is recorded. Here's a simplified breakdown of how it works:
1. Blockchain: Bitcoin’s blockchain consists of blocks of data containing transaction records. Once verified, these blocks are added to the chain, creating a permanent, tamper-proof record.
2. Mining: Transactions are validated through a process called mining. Miners solve complex mathematical problems using computational power to secure the network and are rewarded with new Bitcoins. This process ensures consensus and prevents double-spending.
3. Peer-to-Peer Network: Bitcoin transactions happen directly between users without intermediaries, cutting out traditional banking systems.
4. Public and Private Keys: Users store Bitcoin in digital wallets, accessed through a public key (like an address) and a private key (password for access and control).
Introduction Bitcoin (BTC) is the first and most well-known cryptocurrency, revolutionizing the global financial system with its decentralized nature and blockchain technology. Created by an anonymous entity known as Satoshi Nakamoto in 2008, Bitcoin has since grown into a store of value, a medium of exchange, and a topic of major interest for both individuals and institutions.
---
What is Bitcoin?
Bitcoin is a digital currency that allows peer-to-peer transactions over a decentralized network. Unlike traditional fiat currencies, Bitcoin is not controlled by any government, central bank, or institution. It operates on a technology called blockchain, which is a public, distributed ledger recording all Bitcoin transactions.
Symbol: BTC
Supply Limit: 21 million coins (ensuring scarcity)
Launch Date: January 2009
---
How Bitcoin Works
Bitcoin operates on blockchain technology, a decentralized ledger where every transaction is recorded. Here's a simplified breakdown of how it works:
1. Blockchain: Bitcoin’s blockchain consists of blocks of data containing transaction records. Once verified, these blocks are added to the chain, creating a permanent, tamper-proof record.
2. Mining: Transactions are validated through a process called mining. Miners solve complex mathematical problems using computational power to secure the network and are rewarded with new Bitcoins. This process ensures consensus and prevents double-spending.
3. Peer-to-Peer Network: Bitcoin transactions happen directly between users without intermediaries, cutting out traditional banking systems.
4. Public and Private Keys: Users store Bitcoin in digital wallets, accessed through a public key (like an address) and a private key (password for access and control).