What is bit coin and how does it work

Why the Biotin protocol remained in operation? Because it is a software open to any programmer can access code. Although programmers are introducing more and more software improvements, they can not force changes to the protocol because it needs to be compatible with everyone. In simple words, Bitcoin will only work correctly as long as there is a consensus among users. Therefore, users and programmers have a high incentive to avoid altering the code. From the user’s perspective, Bitcoin is nothing more than a mobile or desktop application, which provides a personal wallet and allows you to send and receive Bitcoins quickly and easily.

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How does Bit coin work?

  • As we speak, Bit coins are digital coins, which mean that they do not exist physically.
  • That’s right! You will not buy a coin and keep it in your wallet or pocket. Instead, it will be stored in a virtual wallet, installed on your computer or mobile phone.
  • Understand Bit coin as an online file on your computer, and that works as money on the internet. All the coins of this money and all the negotiations made with it are registered, through encryption, in a kind of world database, called Blockchain.
  • To use your coins, a code will be generated, which can also be understood as a digital signature. This code will be verified by what we call a miner, and the transaction will be approved within a few minutes. Then it will be incorporated into Block chain.

For programmers, it is an activity that involves the maintenance of a sophisticated public accounting through the Block chain network 1 btc to usd  That is a shared database that functions as a book for the registration of purchase/sale operations or any other transaction. This accounting contains each processed transaction, making it easier to verify the validity of the transactions. Authenticity is protected by digital signatures that correspond to the shipping addresses, allowing users to control the issuance of Bitcoins from their electronic wallets to their destination. In this scenario, there are programmers who are responsible for processing transactions, receiving in reward Bitcoins for their service.