What is Bitcoin and how does it work?
Bitcoin is a digital currency that has been in all the news for the past few years. Although it is completely digital and does not correspond to a physical currency like any other, it is not easy for anyone to understand. Let's analyze the basis of what exactly Bitcoin is and how it works.
Actually how does Bitcoin work?
in simple and common terms, bitcoin is a digital currency that is not assigned a value collected from money as in any common digital bank account. It is not only an assigned value of money collected in a digital account, since bitcoin does not have No physical element such as bills or coins. The verification value of bitcoin, is individual, this is provided by a global network that is in constant modification.
Bitcoins are ultra-secure data blocks that are treated like money. Moving this data from one person or place to another and verify the transaction, or in other terms, spend the money, does not require a huge calculation power. Bitcoin users are called "miners", they allow their computers to be used by the system to verify in a secure way the individual transactions they make. These users are rewarded with new Bitcoins for their contributions to the system and thus those users can spend their new Bitcoins on goods and services, and the process is constantly repeated.
In other words
A bitcoin and its derivatives are known as cryptocurrencies. The system that encodes them uses cryptography, the cryptography is extremely advanced and is called "blockchain", it generates new "currencies" and can verify how many are transferred from one user to another. The cryptographic sequences have several purposes such as making transactions virtually impossible to counterfeit, making the "banks" or "wallets" of currencies are very easily transferable as data and thus be able to authenticate the transfer of the Bitcoin value. from one person to another.
It is important to know that before a Bitcoin can be spent, it has to be generated by the system. Unlike a conventional currency that needs to be put into circulation by a government, Bitcoin mining is designed so that the system is self-sufficient, the "Mine" Bitcoins by providing processing power from their computers to the distributed network, generates new blocks of data that contain the globally distributed record of absolutely all transactions.
Read next
From @yuderzb