Template:MainPage FAQ: Difference between revisions
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fixed excessive wordiness |
link to wikipedia 'public-key cryptography' page; clarify which private key is used |
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'''Q. How does Bitcoin work?''' | '''Q. How does Bitcoin work?''' | ||
A. Bitcoin utilises public | A. Bitcoin utilises [http://en.wikipedia.org/wiki/Public-key_cryptography public-key cryptography]. A coin contains the owner's public key. When a coin is transferred from user A to user B, A adds B’s public key to the coin, and the coin is signed using A's private key. B now owns the coin and can transfer it further. A is prevented from transferring the already spent coin to other users because a public list of all previous transactions is collectively maintained by the network. Before each transaction the coin’s validity will be checked. | ||
<div style="text-align: right;" class="noprint">'''[[FAQ|See More]]'''</div> | <div style="text-align: right;" class="noprint">'''[[FAQ|See More]]'''</div> | ||
Revision as of 04:34, 17 January 2011
Q. What is Bitcoin?
A. Bitcoin is a peer-to-peer currency. Peer-to-peer means that no central authority issues new money or tracks transactions. These tasks are managed collectively by the network.
Q. How does Bitcoin work?
A. Bitcoin utilises public-key cryptography. A coin contains the owner's public key. When a coin is transferred from user A to user B, A adds B’s public key to the coin, and the coin is signed using A's private key. B now owns the coin and can transfer it further. A is prevented from transferring the already spent coin to other users because a public list of all previous transactions is collectively maintained by the network. Before each transaction the coin’s validity will be checked.