How Bitcoin Works | Generated by AI

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Technically, Bitcoin works through a combination of cryptography, a peer-to-peer network, and a consensus mechanism called Proof-of-Work (PoW). Here’s a breakdown of the key components and processes:

1. Cryptographic Foundations:

2. The Blockchain:

3. Transactions:

4. Mining and Proof-of-Work:

5. Incentives:

6. Decentralization and Security:

In summary, Bitcoin’s technical operation relies on a sophisticated interplay of cryptographic techniques, a distributed and transparent ledger, and a computationally intensive consensus mechanism to ensure security, immutability, and decentralization.


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