How does Bitcoin work? What are the attributes of Bitcoin transactions?

Jan 04,2023
How does Bitcoin work? What are the attributes of Bitcoin transactions?

How does Bitcoin work? What are the attributes of Bitcoin transactions? Bitcoin is a cryptocurrency, an electronic currency. It is a decentralized digital currency that is not independent of banks. It can be sent from users to users on the point-to-point Bitcoin blockchain network without intermediaries.

How does Bitcoin work?

Bitcoin runs on a huge public ledger, also known as the blockchain, where all confirmed transactions are contained in so-called "blocks". When each block enters the system, it is broadcast to the user's peer network for authentication. In this way, all users know every transaction, so as to prevent theft and double spending, that is, someone spends the same currency twice. This process also helps blockchain users trust the system.

Bitcoin transaction attributes:

1. Irreversibility: After confirmation, the transaction is irreversible. no one. Nobody means nobody. Not you, not your bank, not the President of the United States, not Nakamoto Cong, not your miners. no one. If you send money, you send money. Period. If you send money to fraudsters or hackers to steal money from your computer, no one can help you. There is no safety net.

2. pseudonym: transactions or accounts have nothing to do with real identities. You receive Bitcoin at the so-called addresses, which are random chains of about 30 characters. Although it is usually possible to analyze the transaction process, it is not necessarily possible to associate the user's real identity with these addresses.

3. Fast and global: the transaction is almost immediately spread on the network and confirmed within a few minutes. Because they occur in a global computer network, they are completely indifferent to your physical location. It doesn't matter if I send Bitcoin to my neighbor or someone on the other side.

4. Security: Bitcoin funds are locked in the public key cryptosystem. Only the owner of the private key can send cryptocurrencies. The powerful cryptographic technology and the magic of large numbers make this scheme impossible to crack. Bitcoin addresses are more secure than Fort Knox.

5. No license required: You do not have to require anyone to use cryptocurrency. It's just a software that everyone can download for free. After installation, you can receive and send Bitcoin or other cryptocurrencies. No one can stop you from trading with your own money. There is no doorman.

Where can I find Bitcoin?

1. A cryptocurrency exchange where you can exchange "regular" coins into Bitcoin or Cong, which are similar to BTC type cents. Resources: Coinbase and Coinsquare in the United States and Canada, and BitBargain UK and Bittylicious in the United Kingdom.

2. Bitcoin ATM (or cryptocurrency exchange), where you can exchange Bitcoin or cash into another cryptocurrency. Resources: Your best choice is BTER and CoinCorner

3. A classified service where you can find sellers who can help you exchange Bitcoin for cash. Resources: The authoritative website is LocalBitcoins.

4. You can sell products or services with Bitcoin. Resources: Purse and other websites.

In general, the above content explains in detail how Bitcoin operates and what the attributes of Bitcoin transactions are. I believe you will understand it after reading it. In short, Bitcoin is a virtual currency, which can be traded by cheque, telegraphic transfer or cash.