How Bitcoin (BTC) Works
Bitcoin is a decentralized digital currency that operates without a central bank or single administrator.
Key Components
- *Blockchain*: A public ledger that records all Bitcoin transactions.
- *Mining*: The process of verifying transactions and adding them to the blockchain, rewarded with newly minted Bitcoins.
- *Wallets*: Software or hardware that stores, sends, and receives Bitcoins.
How Transactions Work
- *Peer-to-peer*: Transactions occur directly between users without intermediaries.
- *Cryptographic encryption*: Transactions are secured through advanced cryptography.
