What is Bitcoin? Understand the basic principles and operating mechanism of Bitcoin in one article

Bitcoin, a decentralized digital currency, originated from the 2008 innovation of Satoshi Nakamoto. Based on blockchain technology, Bitcoin establishes a secure and transparent distributed ledger to record and verify transactions. Its operating mechanism involves mining, transaction verification, digital wallets and anonymity protection. Bitcoin’s security and anonymity make it a unique digital asset that attracts attention.

1. What is Bitcoin?

Bitcoin is a decentralized digital currency invented by Satoshi Nakamoto in 2008. It is not controlled by any government or financial institution, and transactions are anonymous.

2. Basic principles of Bitcoin

Bitcoin is built on blockchain technology. Blockchain is a secure and transparent distributed ledger. All Bitcoin transactions are recorded. Each block contains all transactions that occurred over a period of time and is linked to the previous block. Once a block is added to the blockchain, it cannot be changed or deleted.

3. The operating mechanism of Bitcoin

1. Mining:
Bitcoin generates new coins through "mining". Miners use specialized computers called ASICs to solve complex mathematical puzzles, verify and add new blocks to the blockchain. As a reward, miners will receive Bitcoins.

2. Transaction:
When a Bitcoin transaction is made, the transaction information will be broadcast to the Bitcoin network. Miners verify transactions and add them to blocks. Once the block is added to the blockchain, the transaction is complete.

3. Wallet:
Bitcoins are stored in digital wallets. These wallets can be installed on a computer, smartphone or web platform. The wallet contains a public key, used to receive Bitcoins, and a private key, used to spend Bitcoins.

4. Anonymity:
Bitcoin transactions are anonymous because they are not associated with personally identifiable information. However, transaction records are publicly viewable on the blockchain.

5. Security:
The Bitcoin blockchain is a highly secure system. Distributed ledger and cryptography technology make it nearly impossible to be hacked or defrauded.

The above is the detailed content of What is Bitcoin? Understand the basic principles and operating mechanism of Bitcoin in one article. For more information, please follow other related articles on the PHP Chinese website!