How BITCOIN WORKS?

Bitcoin is an open-source, peer to peer digital payment system.

The user creates an online wallet or installs a bitcoin wallet app on his computer or mobile devices. The wallet allows the user to send or receive payments. Wallet apps can be provided by either the Bitcoin Foundation or by third parties.

Bitcoin transaction are tracked by the use of Block Chains, strings of numbers that record every owner of a particular bitcoin.

HOW TO OBTAINED BITCOIN?

1) Bitcoin can be obtained from Bitcoin Exchanges. These entail a bit of risk, since an exchange could suddenly close and take your bitcoin with it. A 2013 study claimed that 45 percent of bitcoin exchanges failed. Exchanges are also popular targets for cyberattacks.

2) Bitcoin can also be acquired through mining. Miners make bitcoin by examining block chains, string of numbers generated when bitcoin transaction are made. A mathematical process is performed on the block chain to produce a hash. a code appended to the end of chain. The hash proves that the block code is legitimate. Bitcoin miners compete to perform this task, and are rewarded 25 bitcoins when each hash is produced.

 


at 10/03/2018, 03:46am

Updated: at 10/03/2018, 03:46am

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