Bitcoin is widely regarded as the first and most well-known cryptocurrency. In 2009, it was created by a person or group of people going by the name Satoshi Nakamoto. It was designed to be used as a payment method that was free of government oversight, transfer delays, and transaction fees. However, bitcoin is not yet widely accepted for all transactions because some people believe it is too volatile to be a viable payment method.
How does bitcoin work?
Bitcoin is powered by two underlying mechanisms: the blockchain and the mining process.
What is the blockchain?
The blockchain is a distributed digital ledger that records all bitcoin transactions. Miners group each cryptocurrency transaction into 'blocks.'
Before being added to the existing blockchain, the transactions are cryptographically secured. Each 'node,' or connected computer, automatically downloads a copy of the blockchain, allowing everyone to track transactions without relying on centralized recordkeeping.
The blockchain is open to everyone at all times and cannot be changed without the agreement of the rest of the network.
For more information, please visit their website at https://bitcoin.org.