#Bitcoin #how does it work #beginners guide to
What Is Bitcoin and How Does It Work?
Key Takeaways
Bitcoin is the first-ever cryptocurrency, introduced in 2008 and launched in 2009 by the pseudonymous Satoshi Nakamoto.
It operates on blockchain technology, a decentralized public ledger that records all transactions across a global network of nodes.
Bitcoin is open-source, transparent, and resistant to censorship, offering an alternative to traditional financial systems.
What Is Bitcoin?
Bitcoin is a form of digital currency — often referred to as a cryptocurrency — and it was the first of its kind. It was introduced in a whitepaper published by Satoshi Nakamoto in 2008 and officially launched in 2009.
Unlike traditional fiat currencies (like the US dollar or Euro) issued by central banks, Bitcoin is decentralized. This means it’s not governed by any single institution or government. Instead, it operates through a peer-to-peer network, enabling users to send and receive funds without intermediaries like banks.
Bitcoin’s appeal lies in its censorship resistance, security, and ability to function 24/7 across borders — making it revolutionary in how we think about money.
How Does Bitcoin Work?
Bitcoin functions on a technology called blockchain, which serves as a public ledger that records every transaction. This ledger is shared and synchronized across a global network of computers (called nodes).
Understanding the Blockchain
Imagine a chain made up of digital “blocks.” Each block contains a list of transactions. When someone sends Bitcoin, that transaction is bundled into a block, which is then verified and added to the chain — permanently and transparently.
Once added, transactions cannot be altered or deleted — making the blockchain immutable and tamper-proof.
Key Features of Bitcoin’s Design
Decentralization: No central authority controls Bitcoin. Anyone can participate by running the open-source software.
Security: Transactions are secured using cryptographic algorithms.
Immutability: Once data is recorded on the algorithm
