what is Bitcoin?
💡 How Bitcoin Works 1. Decentralized Network Unlike traditional money — like dollars or euros — Bitcoin isn’t issued by a central bank. Instead, it runs on a peer-to-peer network of computers around the world. These computers work together to verify transactions without needing a centralized authority. IG 2. Blockchain: The Public Ledger All Bitcoin transactions are recorded in a blockchain — a public ledger that is shared across the whole network. Each set of transactions is grouped into a block , and each new block is linked to the previous one, forming a chain . This makes the history of every bitcoin transparent and difficult to alter. Encyclopedia Britannica 3. Mining and Security New bitcoins are created through a process called mining . Miners use powerful computers to solve complex mathematical problems. When they solve one, they add a new block of transactions to the blockchain and are rewarded with newly created bitcoins. This process also secures the network. Encycl...