Understanding Bitcoin: A Beginner's Guide

Bitcoin is the world's first decentralized cryptocurrency, created in 2009 by an anonymous person or group using the pseudonym Satoshi Nakamoto. At its core, Bitcoin is a digital payment system that operates without any central authority or banks. ## How Does Bitcoin Work? Bitcoin operates on a technology called blockchain, which is essentially a public ledger of all transactions. Here are the key concepts: ### Blockchain - Every transaction is recorded in a "block" - These blocks are linked together, forming a chain - The entire history is transparent and cannot be altered - Network participants (nodes) maintain copies of this ledger ### Mining - New bitcoins are created through a process called mining - Miners use powerful computers to solve complex mathematical problems - When solved, a new block is added to the chain - Miners are rewarded with new bitcoins and transaction fees