Working of crypto currencies – Bitcoins
Many of the people will be worried so much and also in a great dilemma whether to invest in bitcoins or not. I am sure that these persons are not aware of working of this crypto currency. Some of them have a question on their minds how bitcoin works and if you are one among them, then this article can give you a rapid clarification and other bitcoin news.
When you are a new bitcoin user, the first thing to be done is installing a digital wallet on your device may be a personal computer or mobile phone. Once you have installed it, you will be provided with a bitcoin address also known as public address. You can share this one to your friends to whom you wish to transact bitcoins and this can be changed whenever you want but keep in mind that this public address must be used only once.
All the bitcoin transactions are recorded in a public ledger called blockchain and the whole bitcoin network is dependent on this ledger. Anyone can see the transactions that are completed but the identity of both senders and receivers are kept anonymous as only public address is visible. The chronological sequence and integrity of blockchain are implemented with cryptography.
A transaction is nothing but a transfer of bitcoins between two or more bitcoin wallets and each wallet has a secret data called private key. This key acts as a password so that the transaction can be altered by anyone.