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Getting to know how Bitcoin works pdf

John Williams

Nov 19, 2020 — 1 min read

Bitcoin is all the rage, but many people want to know how Bitcoin works pdf. Bitcoin is a pretty cool idea. Instead of using a centralized banking system, Bitcoin allows people all over the world to use a public blockchain ledger instead. This system is totally transparent, and lets people send and receive Bitcoin from almost any smartphone or PC.

If you want to use Bitcoin, there are a few ways to do it. It all starts with downloading a hot wallet, or buying a cold wallet. These devices do the same thing, and will create a new wallet address for you on the Bitcoin blockchain. From there, anyone can send you Bitcoin, and the wallet will hold your private keys.

The system that makes the Bitcoin blockchain function is innovative. People all over the world have special computers that keep track of all the Bitcoin transactions ever. When a new transaction is made, these computers, or nodes, compete to validate the transactions, and then add blocks to the blockchain.

A person or group calling themselves Satoshi Nakamoto is credited with inventing Bitcoin, and also the first ever public blockchain. If you want to read a more technical and in-depth pdf on how Bitcoin works, here is the original Bitcoin whitepaper.

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