Ever wondered how Bitcoin actually works? It might seem complex, but the core concept is surprisingly straightforward. Imagine a digital ledger, called a blockchain, that records every Bitcoin transaction publicly and transparently. This ledger is maintained by a distributed network of computers, meaning no single entity controls it.
When you send Bitcoin, your transaction is grouped with others into a 'block'. Miners, using powerful computers, then compete to solve a complex cryptographic puzzle. The first miner to solve the puzzle adds the block to the blockchain, verifying all the transactions within it. They're rewarded with newly minted Bitcoin, incentivizing them to keep the network secure. This process, known as 'proof-of-work', ensures that the blockchain is tamper-proof and reliable. In essence, Bitcoin works through a decentralized, secure, and transparent system of verifying and recording transactions.
