What is the bitcoin?
Bitcoin is the number one currency in the world, with a market cap of about $10 billion. The Bitcoin network is made up of thousands of computers managed by individuals around the world.
How does Bitcoin work?
Like any new user, you can start with the bitcoin without understanding the technical details. Once you have created a Bitcoin wallet online or installed on your combuter or mobile phone, it will generate your first Bitcoin adress and you can create new ones whenever you need it. You can disclose your addresses to your friends so they can pay you and vice versa. In fact, using Bitcoin is quite comparable to exchanging emails.
Blockchain
The block chain is a public and shared large accounting book on which the entire Bitcoin network is based. All confirmed transactions are included in the block chain. In this way, the Bitcoin wallet can calculate their balances and it is possible to verify that the new transactions spend bitcoins actually belonging to the issuer of the payment. The integrity and chronological order of the chain of blocks are ensured by cryptographic means.
Private Key Transactions
A transaction is a value transfer between Bitcoin wallet that is included in the block chain. The Bitcoin wallet keep secret information called a private key or seed that is used to sign transactions, providing mathematical proof that they come from the owner of each portfolio. The signature also prevents any modification of the transaction after its issuance. All transactions are distributed between users and usually begin to be confirmed by the network within 10 minutes by a process called mining.
Processing - mining
Mining is a distributed consensus system that is used to confirm pending transactions by including them in the block chain. It imposes a chronological order in the chain of blocks, protects the neutrality of the network and allows different computers to agree on the state of the system. To be confirmed, transactions must be included in a block that must correspond to very strict cryptographic rules that will be verified by the network. These rules prevent the modification of an earlier block because it would invalidate all the following blocks. Mining also induces the equivalent of a competitive lottery that prevents any individual from easily adding blocks consecutively in the chain of blocks. In this way, no individual can control what is included in the chain of blocks or replace parts to cancel his own expenses.
