Cómo funciona Bitcoin

Bitcoin is a fully digital system, in addition to being peer to peer, decentralized, anonymous and totally secure, with which we can make transactions.

Each transaction in the network is made through blockchain technology, which stores in a register. Basically, blockchain is a ledger of transactions.

How does a transaction work?

In traditional centralized systems, such as banks, we first need validation from a banking institution to make any transaction.

With Bitcoin, a transaction works completely different, you only need to send the money from one side to another, and the network will make everything work, to understand this let's look at some key concepts:

• Peer To Peer: It works from one person to another, through blockchain technology, and without the need for intermediaries.
• Decentralization: No need for validation from a financial or governmental entity, we are all part of an ecosystem
• Anonymous: The information is uploaded through a Hash (encrypted code).
• Transparency: Anyone can see the transactions

Bitcoin is a system to make transactions directly from one person to another, using blockchain technology, which does not depend on any authority, it also encrypts and stores the information of the transactions, and is anyone can see them.

Miners

Within this ecosystem there are many people around the world who lend their computing power to validate each transaction, this is what we know as bitcoin mining, since when we lend our computers we receive a small fraction of a bitcoin (depending on the power of our computer, and the time we leave it mining).

The main advantage of this is that we do not depend on a single central server, since we are a whole community that helps this system to work properly.

There are also devices specially designed to mine bitcoins.

Wallets

A wallet or wallet is the representation in software form, where we will keep our keys necessary to move our cryptocurrencies.

Our wallets have 2 keys, the public key and the private key, which work like the keys of our banks, we have a key with which we can send deposits that we can share with anyone (public key), and we also have a key to access our account (private key), which we should not share with anyone.

• Public key: It can be shared with anyone. It is used to make transactions.
• Private key: Access key to our wallet. We must not share it.

Contribution created with contributions from: Miguel Ángel Huamán, Alberto Núñez and Brandon Argel.