How the Bitcoin Network Works?

[raaman]

Bitcoin uses blockchain technology which consists of a collection of computers or nodes that run the bitcoin software. The software contains a history of transactions that have occurred on its network. Each node contains a list of transactions that occurred.

For each node, which contains a list of transactions, bitcoin is responsible for approving or rejecting transactions that occur on the bitcoin network. To approve or reject a transaction, the node will perform a series of checks to ensure that a transaction is valid.

New transactions can occur when all nodes operating on the bitcoin network agree to it. Once approved, the transaction will be added to the blockchain and broadcast to other nodes. So the blockchain contains a list of transactions with pseudonyms.

 

[AfriPeeps Official]

The fact that Bitcoin is built on a block chain is what makes most people trust it. As a result of that any network of business built on a block chain is usually trusted by many online users. I love the information you have shared with us this afternoon, it is so educative.