Template:MainPage FAQ: Difference between revisions
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well might as well link to the actual proof-of-work page then |
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'''Q. How does Bitcoin work?''' | '''Q. How does Bitcoin work?''' | ||
A. Bitcoin uses [[wikipedia:Public-key cryptography|public-key cryptography]], peer-to-peer networking, and proof-of-work to process and verify payments. Bitcoins are sent (or signed over) from one address to another with each user potentially having many, many addresses. Each payment transaction is broadcast to the network and included in the blockchain so that the included bitcoins cannot be spent twice. After an hour or two, each transaction is locked in time by the massive amount of processing power that continues to extend the blockchain. Using these techniques, Bitcoin provides a fast and extremely reliable payment network that anyone can use. | A. Bitcoin uses [[wikipedia:Public-key cryptography|public-key cryptography]], peer-to-peer networking, and [[Proof_of_work| proof-of-work]] to process and verify payments. Bitcoins are sent (or signed over) from one address to another with each user potentially having many, many addresses. Each payment transaction is broadcast to the network and included in the blockchain so that the included bitcoins cannot be spent twice. After an hour or two, each transaction is locked in time by the massive amount of processing power that continues to extend the blockchain. Using these techniques, Bitcoin provides a fast and extremely reliable payment network that anyone can use. | ||
<div style="text-align: right;" class="noprint">'''[[FAQ|See More]]'''</div> | <div style="text-align: right;" class="noprint">'''[[FAQ|See More]]'''</div> | ||
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Revision as of 07:23, 14 September 2014
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 uses public-key cryptography, peer-to-peer networking, and proof-of-work to process and verify payments. Bitcoins are sent (or signed over) from one address to another with each user potentially having many, many addresses. Each payment transaction is broadcast to the network and included in the blockchain so that the included bitcoins cannot be spent twice. After an hour or two, each transaction is locked in time by the massive amount of processing power that continues to extend the blockchain. Using these techniques, Bitcoin provides a fast and extremely reliable payment network that anyone can use.
