You may be a bitcoin user or an individual who is thinking to invest in cryptocurrencies like bitcoins. As a bitcoin user, hope you may know what is bitcoin and in this article, we are going to see about the working of bitcoins. Once you go through this article, you may get answers of all the unanswered questions regarding bitcoins in your mind and also the doubts you have about this digital money will get clarified.
For a user like you, bitcoin is a mode of payment and you can do transactions when you have a bitcoin wallet application in your hand that is in your device. With a bitcoin wallet you can send, receive and even store bitcoins with public and private keys with you. But how exactly the bitcoin works is still a mystery for its users and for you, your doubt will be clarified at the end of this article. Here we go!
The bitcoin network is sharing a public ledger called blockchain and all the transactions that are processed are stored in this ledger and even the identity of the user computer is also registered along with the transaction that is your public key. But the authenticity is being protected with the help of signatures which are nothing but your private key. Users can even have the power to process the transactions with a special hardware program and they can earn bitcoins through the process called bitcoin mining. So, this is the exact working of bitcoin network.