How does Bitcoin work?

Hello Reader,

So far, we’ve covered an introduction to crypto currency and the key innovations which inspired the creation of Bitcoin.

Now let’s lift up the hood and take a peek at Bitcoin’s delicates.

We will start with a general introduction:

Bitcoin is a decentralised peer to peer digital currency. It operates over the internet, exists purely in digital form and has no central issuer or controlling authority.

That last part is really important, no person or entity has control, there is no Bitcoin CEO. Instead it is controlled by software, code is law and code is infallible.

When I first heard that, my reaction was something akin to, wait what? So let’s take a look at how this is all possible.

The single best source for a thorough understanding of Bitcoin remains the original whitepaper and I strongly recommend that you take the time to read it properly…

Still here? This is a big topic so I’ve broken it down into the key components and dedicated a separate post to each:

  1. We begin with the magic of cryptography and how it secures addresses
  2. Next we take a look at how transactions are stored in the blockchain
  3. What is mining and how does it secures the network
  4. Some light relief, interesting facts about bitcoin

Fear not dear reader, the list doesn’t end here. I’ll be make a post on each aspect of the Bitcoin protocol and will continue to update this post to bring the story to light.

If you’ve enjoyed this article, it would be my honour to have you as a regular reader. Subscribe and you won’t miss any future posts ?

Yours, X

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