Difference between revisions of "Template:MainPage FAQ"

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(link to wikipedia 'public-key cryptography' page; clarify which private key is used)
(link to Network article)
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'''Q. What is Bitcoin?'''
 
'''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.
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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?'''
 
'''Q. How does Bitcoin work?'''

Revision as of 23:28, 2 March 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.