How Does Bitcoin Work? A Short & Simple Guide
If you have started using bitcoin a few days or a couple of hours ago then getting into all the deep discussions and understanding the algorithm of this modern currency will be too soon. For a new person, getting started with bitcoin is very simple all you have to do is install the wallet of bitcoin on a device like mobile phone, computer or laptop. On the other hand if you are interested to know about how does bitcoin work in a shorter yet descriptive way then keep on reading.
The Base of bitcoin: BlockChain
The entire network of bitcoin is highly dependent on the blockchain, claiming the blockchain of bitcoins to be a shared public ledger will not be wrong. Almost every transaction that undergoes through bitcoins is present in this blockchain along with that it enables the wallet to figure out the balance in order to verify the new transactions. The cryptography enforces the chronological order as well as the integrity of blockchain.
Data is safe during transactions of bitcoins
When transactions of bitcoins occur it is recorded in the block chain and this leads to creation of seed by the wallet. The seed is very crucial during and after transactions as well it could be said as secret data that is used in signing transactions and it also works as proof.
So, now you might have understood how does bitcoin work so it is advised to plan properly and invest in it.