Introduction to Bitcoin: Principles, Mining, and Security
Bitcoin is a digital currency that requires no central authority to manage it. It relies on blockchain technology, distributed nodes, and proof of work to record and verify transactions, while also having a fixed supply cap and a regular halving mechanism. Users must also protect themselves against risks such as private key exposure, scams, malware, and price volatility.
What is Bitcoin?
Bitcoin was 2008 proposed in [year] by an anonymous creator using the pseudonym “Satoshi Nakamoto,” and launched in 2009[year]. It is a peer-to-peer digital currency not controlled by any single government, bank, or company. Users can send and receive Bitcoin directly, without transactions being intermediated by traditional financial institutions. Its commonly used abbreviation is BTC。
How are transactions recorded and verified?
Bitcoin uses the blockchain as a public ledger. Each block stores a batch of transaction records, while nodes worldwide collectively store and synchronize copies of the ledger. New transactions are broadcast to the network, where nodes check whether sufficient funds are available and verify their validity. Once records are written to the blockchain, they are difficult to alter, allowing transactions to be publicly verified.
Mining and issuance mechanism
Miners contribute computing power to participate in proof of work, competing to solve computational puzzles and assemble valid transactions into new blocks. Miners that successfully add a block receive a block reward, which both incentivizes network maintenance and introduces new Bitcoin. The protocol sets the maximum supply at 21000000 coins, and the block reward decreases approximately once every 4 years through halving events.
Uses and key risks
Bitcoin can be used for transfers and some online or in-person purchases, and some people regard it as a store of value. However, transactions are generally irreversible, so holders need to properly protect their accounts, private keys, and wallets, and remain alert to phishing, malware, and ransomware. Its price may also change dramatically over a short period, and potential losses should not be overlooked.
Original Tutorial
https://www.binance.com/zh-CN/academy/articles/what-is-bitcoin
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