How Does Bitcoin Work? A Simple Beginner's Guide (Step by Step)
Have you ever wondered how Bitcoin works when there is no bank in charge? It sounds impossible. Money moves between people all over the world, and nobody is sitting in an office approving it. The answer is a mix of a few simple ideas: wallets, digital signatures, a shared record called the blockchain, and computers called miners. You do not need to be a programmer to follow this. I will walk through it one step at a time, using everyday comparisons. New to Bitcoin? Start with our first guide , What Is Bitcoin? A Simple Guide for Beginners , then come back here. Bitcoin in one minute: Bitcoin is digital money that runs on a network of computers around the world. Instead of one bank keeping the records, thousands of computers keep a copy of the same record and follow the same rules. It was introduced in 2009 by someone using the name Satoshi Nakamoto. Nobody knows who that person (or group) really is. The quick version When you send Bitcoin, this is what happens: Your wallet create...