What is Bitcoin?

Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.

Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.

How Does Bitcoin Work?

Bitcoin is often called the first cryptocurrency, although prior systems existed. Bitcoin is more correctly described as the first decentralized digital currency. Bitcoin is the largest of its kind in terms of total market value.

The system works without a central bank or single administrator. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.

Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.

Who Controls the Bitcoin Network?

Nobody controls the Bitcoin network. Bitcoin is controlled by all Bitcoin users around the world.

What is Bitcoin Mining?

Bitcoin mining is how Bitcoin transactions are verified and added to the blockchain. It is done by running a Bitcoin mining program on a computer. The program solves a mathematical problem and is rewarded with a Bitcoin.

How Many Bitcoins Are There?

As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.

Bitcoin is unique in that there are a finite number of them: 21 million.

Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.

What is a Bitcoin Wallet?

A Bitcoin wallet is a software program where bitcoins are stored. Bitcoin wallets are used to store Bitcoin balances and to track transactions.

What is a Bitcoin Address?

A Bitcoin address is a unique number that is used to receive bitcoins.

What is a Bitcoin Transaction?

A Bitcoin transaction is a transfer of value between Bitcoin wallets that gets included in the block chain. Bitcoin transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain.

What is a Bitcoin Block?

A Bitcoin block is a file that contains Bitcoin transactions. Bitcoin blocks are used to confirm Bitcoin transactions and to process them into the blockchain.

What is the Blockchain?

The blockchain is a public dispersed ledger that records Bitcoin transactions. The blockchain is used to verify the permanence of Bitcoin transactions and to prevent double spending.