The Basics of Bitcoin for a New User

October, 2018 by

The Basics of Bitcoin for a New User

In reality, if you are a new user of Bitcoin, it isn’t required to know all of the technical details. You will first install a Bitcoin wallet on your phone or computer, which will provide you with your beginning Bitcoin address. You can create more of these as needed in the future. This address can be provided to friends, so you can receive or send Bitcoin to them. You can also visit Bitcoin ATM locations in Philadelphia to purchase Bitcoin or sell Bitcoin for cash.

Understanding the Block Chain

When you hear about the block chain, this is a shared public ledger that is relied on by the entire Bitcoin network. Every transaction made is included in the block chain. This provides a way for Bitcoin wallets to determine the spendable balance, so transactions can be verified as being owned by the person who is spending the Bitcoin. This is enforced through the use of cryptography, which keeps everything secure and protected.

Transactions & Private Keys

When you make a transaction, a certain amount of Bitcoin is transferred between wallets using what is called a private key. This is how the transaction is signed and presents as a mathematical proof that shows it came from the owner. This also makes it impossible to alter the transaction after it is issued. The transaction is broadcast to the larger network and then confirmed in a matter of minutes.

The Bitcoin Mining Process

We mentioned how the transaction is confirmed above. This is called mining and works as a distributed consensus system. The benefits of this system are that many different computers can agree on the state of the system, a chronological order in the block chain is enforced, and the neutrality of the network is protected. Transactions are packed into a block in order to be confirmed. Because of this, the transaction cannot be altered. Mining also makes it where new blocks cannot be added to the block chain.

Learning More About Bitcoin

If you want to learn more about Bitcoin, you can find resources at RockItCoin. In addition, RockItCoin offers Bitcoin ATM locations in Philadelphia that allow you to buy or sell Bitcoin in a physical location. If you are interested in learning more or using one of these ATMs, the information is provided on their website.

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