Chapter 1
Bitcoin Tech Explained
IN THIS CHAPTER
Understanding the Bitcoin network
Finding out about public-key cryptography
Sending messages to the Bitcoin ledger
Understanding how cryptography proves you own your Bitcoin
How Bitcoin works is a mystery to most of the world. Don’t let it be so to you! If you’re going to get involved with Bitcoin — perhaps invest in it — then you really should know what you’re working with.
Although we give you an intro to Bitcoin in Book 2, Chapter 4, here we dive a little deeper because understanding the specifics of how Bitcoin functions as “money” — as well as other aspects of this cryptocurrency — is important. First, it’s always nice to sound intelligent when someone asks you, “So what is Bitcoin, anyway?” (It’s so embarrassing to admit that you’ve just invested in something and have no idea what it is!) But more importantly, if you don’t understand how Bitcoin works, it’s hard to keep it safe. Thousands of people have had their Bitcoin stolen from them, or have simply lost access to it, primarily because they really don’t understand how it ...
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