how bitcoin work?
Bitcoin is a decentralized digital currency that operates on a peer-to-peer network. Transactions in Bitcoin are recorded on a public ledger called the blockchain, which is maintained by a network of computers around the world.
To use Bitcoin, individuals must first create a wallet, which is a software program that allows them to securely store, receive, and send bitcoins. When making a transaction, the buyer sends a request to the network to transfer a specific number of bitcoins to the seller's wallet. This request is verified by computers on the network, who then add it to the blockchain.
One of the key features of Bitcoin is that it operates without a central authority or bank. Instead, the network uses a system called "mining" to validate transactions and maintain the integrity of the blockchain. Miners use powerful computers to solve complex mathematical problems and are rewarded with new bitcoins for their efforts.
The supply of bitcoins is limited to 21 million, and the rate at which new bitcoins are created is gradually decreasing over time. This scarcity, combined with its decentralized nature and ease of transfer, has made Bitcoin a popular alternative to traditional currency for some individuals and businesses. However, it is important to note that the value of Bitcoin can be volatile and its use as a form of payment is not universally accepted.
