*How Bitcoin Works*#BTC ....#satoshiNakamato ....#CryptoWhale
Bitcoin operates on a decentralized network, allowing for peer-to-peer transactions without the need for intermediaries like banks. Here's a simplified overview:
- *Blockchain Technology*: Bitcoin uses a public ledger called the blockchain to record all transactions.
- *Mining Process*: New Bitcoins are created through a process called mining, where powerful computers solve complex mathematical problems to validate transactions and add them to the blockchain.
- *Decentralized Network*: The Bitcoin network is maintained by a group of nodes (computers) around the world, ensuring its decentralized nature.
- *Transactions*: Users can send and receive Bitcoins using unique addresses, and transactions are verified by nodes on the network.
Key aspects of Bitcoin's functionality include:
- *Limited Supply*: The total supply of Bitcoin is capped at 21 million.
- *Security*: Bitcoin's decentralized nature and cryptographic algorithms provide a secure way to transfer value.
- *Transparency*: All transactions are recorded on the public blockchain, ensuring transparency.