Economy

How Does Bitcoin Work?

How Does Bitcoin Work?
Bitcoin is a cryptocurrency which is created and kept on a network of computers through a process called mining. When a computer mines for Bitcoin, it is creating a code which is then added to the blockchain of Bitcoin. By adding, or “chaining” this code to other codes which have come before it and recreating that code each time a new transaction code is added to the blockchain, the financial information behind each transaction is made safe from being hacked.

Therefore, the technology behind Bitcoin, blockchain, is the one driving its recent dollar value growth. It has been recognized that blockchain technology, which is the backbone of all cryptocurrencies, is providing consumers with the ability to purchase any type of product and have their transaction completely protected by those in their network rather then a bank.