How Bitcoin Works

You don’t need to understand every technical detail to start using Bitcoin. All you need is a Bitcoin wallet, which you can install on your computer or mobile phone. Once installed, your wallet creates your first Bitcoin address. You can share this address with friends to send or receive payments—similar to how email works.

Balances – Blockchain

The blockchain is a public record that stores all confirmed Bitcoin transactions. Every wallet uses the blockchain to calculate balances and confirm that users actually own the Bitcoin they are spending. The system relies on cryptography to keep everything accurate, secure, and in order.

Transactions – Private Keys

A Bitcoin transaction is the transfer of value between wallets. Each wallet has a private key (a secret code) used to sign transactions. This signature proves ownership and ensures that no one can change the transaction once it’s created. Transactions are broadcast to the network and usually confirmed within 10–20 minutes through mining.

Processing – Mining

Mining is the process that confirms transactions and adds them to the blockchain. It ensures the network stays fair, secure, and consistent. To confirm a transaction, miners group it into a block that must meet strict cryptographic rules. Once confirmed, the block is added to the blockchain permanently.

Mining also works like a global lottery—no one person can control it. This prevents manipulation and ensures no one can change past transactions or spend the same Bitcoin twice.