#$BTC
1. Blockchain Technology
Bitcoin runs on a blockchain, which is a decentralized digital ledger. Think of it as a public, unchangeable spreadsheet shared across thousands of computers. Every transaction is recorded here.
2. Bitcoin Transactions
When you send Bitcoin:
You use a wallet, which has a public address (like an account number) and a private key (like a password).
The transaction is broadcast to the network and grouped with others into a block.
3. Mining
Miners are people (or computers) who validate transactions:
They compete to solve a cryptographic puzzle (called Proof of Work).
The winner adds the new block to the blockchain and gets rewarded with new bitcoins (called the block reward) and transaction fees.
4. Decentralization
No single entity controls Bitcoin. It’s maintained by a global network of nodes (computers) running Bitcoin software.
5. Limited Supply
Only 21 million bitcoins will ever exist, which makes it scarce and helps give it value.
