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How Does Bitcoin Work?

What is Bitcoin?
Bitcoin is the first global, decentralized currency that allows you to send money from one person to another without involving a third party broker, such as a bank. You only need your computer to make transactions because Bitcoin is fundamentally software.
As a decentralized currency, Bitcoin isn’t controlled by anyone. It’s open so that anyone can benefit from it.
You might think that the lack of control could mean chaos, but that’s not true at all. That’s because Blockchain, the technology behind Bitcoin is one of the most accurate and secure systems ever created.
How Does Bitcoin Work?
A blockchain is a ledger that keeps records of digital transactions. Instead of having a central administrator, like a bank or the government, blockchain organizes data in batches (What is a blockchain, and why is it growing in popularity?) called blocks. These data batches use cryptographic validation to link themselves together. In other words, each block identifies and references the previous block by a hash value (Hash function – Wikipedia), forming an unbroken chain.
Blockchain solves two of the most challenging problems of digital transactions (There is a ‘game changer’ technology on Wall Street and people keep confusing it with bitcoin): controlling the information and avoiding duplication. When a purchase is carried out, the ledger records it and sends it out to the entire network. Computers all over the world then compete to confirm the operation by solving complex math equations. The first to figure out the answer and validate the block receives a reward in Bitcoins (this process is called mining.)
The validated block is timestamped and added to a chain in chronological order. The entire chain is continually updated so that it’s always an accurate representation of who owns what at any given time.
Is it Legal?
The legality of Bitcoin depends on where you’re located. Bitcoin was legalized as a formal method of payment in Japan this year, and India might be next. In most countries, however, it somewhat operates in a gray zone, with no official ban or approval of Bitcoin.
Who’s Behind it?
The founder of Bitcoin is Satoshi Nakamoto, an anonymous online alias for a forum poster. The founder remains unknown, and no one truly knows who the actual founder is.
At the moment, Bitcoin is owned by the community as a whole, as it is an open source initiative, with no single owner behind it. It is a community movement.

What are the benefits of bitcoin?
How are transactions carried out using bitcoin?
What makes it different from other means of carrying out transactions?
So many questions you should answer.

Advantage of btc
* No paper work
* Appreciating value
* Direct transfer for immediate settlement
* Low fee and no taxing etc

How is transaction carried out
Transaction is carried out by peer-to-peer technology to operate with no central authority

What makes it different from other means of carrying out transactions?
Very simple, because it is a digital currency, it doesn't needs the third party for its transaction, it is very fast and complex free.
Thanks, I hope that helps.


Patronize us today at pathway2gold, we sell and buy bitcoin at a very good rate.
Your comfort is our happiness

adedayor08:
How Does Bitcoin Work?

What is Bitcoin?
Bitcoin is the first global, decentralized currency that allows you to send money from one person to another without involving a third party broker, such as a bank. You only need your computer to make transactions because Bitcoin is fundamentally software.
As a decentralized currency, Bitcoin isn’t controlled by anyone. It’s open so that anyone can benefit from it.
You might think that the lack of control could mean chaos, but that’s not true at all. That’s because Blockchain, the technology behind Bitcoin is one of the most accurate and secure systems ever created.
How Does Bitcoin Work?
A blockchain is a ledger that keeps records of digital transactions. Instead of having a central administrator, like a bank or the government, blockchain organizes data in batches (What is a blockchain, and why is it growing in popularity?) called blocks. These data batches use cryptographic validation to link themselves together. In other words, each block identifies and references the previous block by a hash value (Hash function – Wikipedia), forming an unbroken chain.
Blockchain solves two of the most challenging problems of digital transactions (There is a ‘game changer’ technology on Wall Street and people keep confusing it with bitcoin): controlling the information and avoiding duplication. When a purchase is carried out, the ledger records it and sends it out to the entire network. Computers all over the world then compete to confirm the operation by solving complex math equations. The first to figure out the answer and validate the block receives a reward in Bitcoins (this process is called mining.)
The validated block is timestamped and added to a chain in chronological order. The entire chain is continually updated so that it’s always an accurate representation of who owns what at any given time.
Is it Legal?
The legality of Bitcoin depends on where you’re located. Bitcoin was legalized as a formal method of payment in Japan this year, and India might be next. In most countries, however, it somewhat operates in a gray zone, with no official ban or approval of Bitcoin.
Who’s Behind it?
The founder of Bitcoin is Satoshi Nakamoto, an anonymous online alias for a forum poster. The founder remains unknown, and no one truly knows who the actual founder is.
At the moment, Bitcoin is owned by the community as a whole, as it is an open source initiative, with no single owner behind it. It is a community movement.

but how did someone program this form money?

adedayor08:
Advantage of btc
* No paper work
* Appreciating value
* Direct transfer for immediate settlement
* Low fee and no taxing etc

How is transaction carried out
Transaction is carried out by peer-to-peer technology to operate with no central authority

What makes it different from other means of carrying out transactions?
Very simple, because it is a digital currency, it doesn't needs the third party for its transaction, it is very fast and complex free.
Thanks, I hope that helps.


Patronize us today at pathway2gold, we sell and buy bitcoin at a very good rate.
Your comfort is our happiness

ok

lenovoboy:
but how did someone program this form money?

It is very simple, now that you know that it's a software. You now understand that it obey simple set of codes to carryout it's function. Therefore this codes is imbedded in the peer to peer technology to carryout some function(which is settlement )

lenovoboy:
but how did someone program this form money?

It is very simple, now that you know that it's a software. You now understand that it obey simple set of codes to carryout it's function. Therefore this codes is imbedded in the peer to peer technology to carryout some function(which is settlement )