Nite
Valued Contributor
Bitcoin works as a decentralized digital currency by utilizing advanced technology, known as blockchain, to record, store, and verify all financial transactions. This means that there is no central authority, such as a government or bank, controlling the currency. Instead, the Bitcoin network is maintained and operated by a vast network of users known as 'miners'.
The Bitcoin network is made up of thousands of nodes, which are computers running the Bitcoin software. Each of these nodes holds a copy of the blockchain and works together to validate transactions and maintain the network's integrity.
An important aspect of Bitcoin's decentralisation is its limited supply. Bitcoin has a fixed supply of 21 million coins. This scarcity is achieved through a process called 'mining', where miners use powerful computers to solve complex mathematical problems and verify transactions. As an incentive for their work, miners are rewarded with newly created bitcoins.
The Bitcoin network is made up of thousands of nodes, which are computers running the Bitcoin software. Each of these nodes holds a copy of the blockchain and works together to validate transactions and maintain the network's integrity.
An important aspect of Bitcoin's decentralisation is its limited supply. Bitcoin has a fixed supply of 21 million coins. This scarcity is achieved through a process called 'mining', where miners use powerful computers to solve complex mathematical problems and verify transactions. As an incentive for their work, miners are rewarded with newly created bitcoins.
