BitcoinMadeClearWho keeps the payment record?
Many computers keep copies of a public ledger, which simply means a record of payments. They check it using the same rules.
Payments are grouped into blocks. Each block links to the one before it. This linked history is the blockchain.
- Earlier blockA group of payments
- Next blockLinks to the earlier block
- New blockLinks to the next block
The record uses addresses rather than a list of names. It is public, so Bitcoin is not automatically anonymous.
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What does mining do?
Mining uses computing work and electricity to propose a new block. This is called proof-of-work.
Other computers, called nodes, still check the proposed block. Winning the computing puzzle cannot make an invalid payment valid. An accepted block can give the miner newly created bitcoin and payment fees.
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Can more bitcoin be created without a limit?
No. Bitcoin's current rules cap the total supply at 21 million BTC. Computers checking blocks reject blocks that create more than the rules allow.
A supply limit does not guarantee value. You can learn how Bitcoin works without owning any.
What should you remember?
A Bitcoin payment changes the shared record. Your wallet uses secret keys to approve spending. A confirmed payment has no central help desk that can reverse it.
That makes understanding keys the next useful step.