How does BTC work?

Bitcoin, the pioneering cryptocurrency, operates on a groundbreaking technology known as blockchain. This distributed digital ledger serves as the backbone of the Bitcoin network, ensuring transparency and security in every transaction.

The blockchain is essentially a chain of blocks, each containing a unique set of data pertaining to a Bitcoin transaction. These blocks are interconnected, forming an immutable and tamper-proof record of all transactions that have taken place on the network.

Each block in the blockchain contains vital information about a transaction, such as the date and time it occurred, the total value exchanged, the identities of the buyer and seller, and a unique identifying code that distinguishes it from other transactions.

The unique identifying code, often referred to as a hash, is generated using cryptographic algorithms, ensuring that no two transactions can have the same hash. This feature adds an extra layer of security to the blockchain, making it virtually impossible to alter or forge transaction records.

The decentralized nature of the blockchain allows for a high degree of transparency, as anyone with access to the network can view the transaction history. However, users' identities are kept anonymous, safeguarding their privacy.