So, what is BTC and how does it work? BTC is the ticker symbol for Bitcoin.
You can buy Bitcoins online through reputable marketplaces, or you can mine them. Mining is how Bitcoin is discovered, and there are only is a finite number of Bitcoins available (21 million to be exact).
Mining is an intensive operation that requires expensive hardware and the solving of highly complex mathematical problems. Mining is controversial because it’s such an energy-intensive process.
The mining process is a complex one, and it’s all a part of the blockchain system. The computer that’s solving the mathematical problems is a part of the “proof-of-work system.” Within this system, the computer tries to determine a number. The computer that finds the number then uses it to hash a block to the previous block within the blockchain. The network then validates this and rewards the system with Bitcoin.
To understand how Bitcoin works, you have to understand the blockchain network. Simply put, the blockchain network is a transparent ledger, also known as a distributed ledger technology (DLT). The block is the transaction, and the chain is the hash that links the blocks together.
Before a transaction can be added to a block, it must be validated by other computers, known as nodes. These computers, or nodes, are the same machines doing the mining.