Bitcoin was created in 2009 by Satoshi Nakamoto. The main purpose for Bitcoin is to enable payments over the internet, without a third-party involved. This protects the currency from political impact.
Bitcoin relies on a shared public ledger, also known as the blockchain, where all confirmed transactions are included.
How does a transaction work?
When you transfer value between Bitcoin wallets, a piece of data called a private key is kept in the wallet. The private key is used to sign transactions by providing a mathematical proof that they are from the owner of the wallet. This becomes like a signature, that also prevents the transaction from
being altered. The transactions are broadcasted to the network, and after 10-20 minutes the mining begins to confirm the transaction
For a transaction to be confirmed, they must be packed in a block that fits the cryptographic rules that the network will verify.
These rules prevent previous blocks from being modified and making all the subsequent blocks invalid.
Mining is used to confirm pending transactions by including them in the blockchain. This enforces a chronological order in the blockchain, which protects the neutrality of the network.
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