What is the operating logic of Bitcoin?

Mar 5, 202385

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Creating an account on the Bitcoin network allows users to receive and send Bitcoin using a unique Bitcoin address. Every transaction on the network is recorded and cannot be reversed, including information such as the sender, receiver, transaction time, and amount. These records are organized in a public database called the blockchain. Each transaction in the Bitcoin network needs to be verified by network nodes to ensure the Bitcoin used in the transaction belongs to the parties involved and has not been duplicated or tampered with. To prevent tampering, Bitcoin uses a mechanism called "proof of work" to ensure fair computation resources and participation in updating and expanding the blockchain. Miners in the Bitcoin network validate transactions by solving complex mathematical problems and add new blocks to the blockchain. Miners are rewarded with new Bitcoin and transaction fees for completing these calculations. To control the supply of Bitcoin in the market, the Bitcoin design includes a mechanism called "halving" where the Bitcoin reward for miners is reduced by half after a certain number of blocks are added to the blockchain.

Account Creation: Create a Bitcoin account on the Bitcoin network and obtain a unique Bitcoin address that can be used to receive and send Bitcoin.

Transaction Records: Every transaction in the Bitcoin network is recorded and cannot be reversed, including information such as the sender, recipient, transaction time, and amount. These records are sorted by time and collected in a public database called the blockchain.

Transaction Verification: Every transaction in the Bitcoin network needs to be verified by network nodes to ensure that the Bitcoin used in the transaction truly belongs to the parties involved and has not been used or tampered with.

Blockchain Confirmation: To prevent tampering with the blockchain, Bitcoin uses a mechanism called "proof of work" to ensure that each update and expansion of the blockchain requires fair computational resources and participation. This mechanism requires every block on the blockchain to be verified by network nodes before being confirmed and added to the blockchain.

Mining: In the Bitcoin network, miners verify transactions by solving complex mathematical problems and add new blocks to the blockchain. After completing the calculations, miners receive new Bitcoin rewards and transaction fees.

Bitcoin Reward and Halving: To control the supply of Bitcoin in the market, the designers of Bitcoin have specified that the Bitcoin reward for miners will be halved each time a certain number of blocks are added. This mechanism is also known as the Bitcoin halving mechanism.