$BTC

Bitcoin (BTC) is the world's first and largest decentralized digital currency. Here's a breakdown of what it is and how it works:

What is Bitcoin?

* Decentralized Digital Currency: Unlike traditional currencies issued by central banks (like the USD or Euro), Bitcoin operates on a decentralized network. This means no single entity, government, or institution controls it.

* Invented by Satoshi Nakamoto: An anonymous individual or group published a white paper in 2008 under this pseudonym, outlining the concept of Bitcoin. It launched in 2009.

* Peer-to-Peer: Transactions occur directly between users without the need for intermediaries like banks.

* Cryptocurrency: It uses cryptography for security, making transactions secure and verifying the transfer of ownership.

* Blockchain Technology: Bitcoin is built on a "blockchain," which is a public, distributed ledger that records every Bitcoin transaction in a transparent and immutable way.

How Does Bitcoin Work?

* Transactions: When you send Bitcoin, you initiate a transaction specifying the recipient's wallet address and the amount.

* Cryptography: Your private key digitally signs the transaction, proving you own the Bitcoin.

* Broadcasting: The signed transaction is broadcast to the Bitcoin network.

* Verification (Mining): "Miners" on the network verify the transaction's validity (e.g., ensuring you have enough Bitcoin and the authority to send it). They group verified transactions into a "block."

* Adding to the Blockchain: Miners compete to solve a complex cryptographic puzzle. The first miner to solve it adds their block of transactions to the existing blockchain. This process is called "Proof of Work" and consumes significant computational power.

* Confirmation: Once a transaction is included in a block and added to the blockchain, it's considered confirmed and permanent.