How Bitcoin Works (Simple Version)

You don't need to understand the deep math to use Bitcoin — just like you don't need to understand TCP/IP to use the internet. But a basic understanding helps.

Sending Bitcoin — Step by Step

1. You have a Bitcoin wallet (like a bank account but you control it)
2. Your wallet has an address (like an account number — share this to receive BTC)
3. Your wallet has private keys (like a password — NEVER share this)
4. You create a transaction: "Send 0.001 BTC from my address to this address"
5. You sign the transaction with your private key (proves it's really you)
6. The transaction broadcasts to the Bitcoin network
7. Miners verify the transaction is legitimate
8. The transaction is confirmed and permanently recorded on the blockchain
9. The recipient can now see and use their Bitcoin

The Role of Miners

Bitcoin miners are computers that:

• Collect pending transactions
• Bundle them into blocks
• Solve a complex mathematical puzzle (Proof of Work)
• First to solve gets to add the block to the blockchain
• Rewarded with newly created Bitcoin (block reward)

This process secures the network and prevents fraud.