How does Bitcoin work?

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Bitcoin Crypto Currency


How does Bitcoin?
This question is often confusing. Here is a quick explanation!
Information for new users
As a new user, you can start using Bitcoin, even without understanding the technical details. Once you have installed bitcoin wallet on your computer or mobile phone, it will generate your first Bitcoin address that you can create as much as needed in the future. You can report their addresses to friends so that they can pay you, or vice versa. In fact, it's very similar to how it works Email, except that only one time use bitcoin address.

Bitcoin
Balances - chain blocks
Chain blocks or blokchain - a public register of a collective on which is based the entire Bitcoin network. All committed transactions are included in the chain of blocks. Based on this information, bitcoin wallets can calculate the remainder of your balance and ensure that transactions in the new bitcoins really spent their owner. Integrity and the chronological order of the chain units are based on robust cryptography.

Transactions - private keys
The transaction - a transfer of funds between bitcoin wallets , information about which is included in the chain of blocks. Bitcoin wallets contain confidential information, called the private key , which is used to sign transactions, providing mathematical proof that the transaction is approved by the owner of the wallet really. This signature also prevents changes to the transaction after it has been forwarded. All transactions are transmitted between the users and the network start to be supported, typically within 10 minutes, using a process called mining.

Confirmations - Mining
Mining - a distributed system used to confirm the pending transaction by including them in the block chain. Mining provides the chronological order of the transactions in the chain block, the neutrality of the network, and also allows different computers to "agree" on a single state system. To transaction confirmed steel, they must pack up in the block which satisfies the rigorous requirements of cryptographic and must be checked by the network. These rules do not allow you to change the previous block, as in this case, all of the following units would be invalid. In addition to this, mining creates an analogue of the lottery, which excludes the probability of a simple addition of sequential blocks any user chain. Thus, no one can control the block chain or replace its parts others to roll back their transactions.

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