how bitcoin core works

The Bitcoin Core software initializes by creating a local blockchain copy, storing a record of all Bitcoin transactions.

Oct 09, 2024 at 08:11 pm

How Bitcoin Core Works

Initialization
- The Bitcoin Core software is downloaded and installed on a computer.
- The software creates a local copy of the blockchain, which is a record of all Bitcoin transactions.
Wallet creation
- A user creates a Bitcoin wallet.
- The wallet generates a public address and a private key.
Transaction creation
- A user wants to send Bitcoin to another user.
- The user creates a transaction, which includes the amount of Bitcoin to be sent, the recipient's public address, and the user's signature.
Transaction broadcasting
- The user broadcasts the transaction to the Bitcoin network.
- The transaction is picked up by other nodes on the network and relayed to all other nodes.
Transaction verification
- Nodes on the network verify the transaction.
- They check that the transaction is valid, that the sender has enough Bitcoin, and that the signature is correct.
Transaction confirmation
- If the transaction is valid, it is added to the blockchain.
- The transaction is now confirmed and cannot be reversed.
Transaction completion
- Once the transaction is added to the blockchain, it is complete.
- The recipient can now spend the Bitcoin.

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