First of all, the right to our Bitcoin is the same as having a private key. This string of numbers and letters should know only the owner of the wallet, where you store your cryptocurrency. The private key is a type of international signature. Learn how to make money on bitcoin, more info at the bottom of page.
Each BTC is associating with the public key ECDSA in the system. The transaction is make when someone transfers bitcoins to another user’s address – in which the public key of the new owner is combine with a certain amount of bitcoins
The transaction will be signe with the private key and finally there is no possibility that someone will send our bitcoins without our permission – without knowing the private key it is impossible.
Furtheremore, we should know how do recipients of transfers in the bitcoin network can be found? Bitcoins use the RIPEMD-160 hash function on public parts of the ECDSA key which acts as a unique address, when bitcoins are sent. The address is store in the Base58 coding system. It is publicly available, so it can be distribute to network users. More importantly, anyone can generate any number of addresses.
Probably you read our article about blockchain. When we are talking about mining, we have to explain: Who and how writes transactions to the block and builds a blockchain from them?
The answer is: miners. We are talking about digital mining using devices with high computing power. We needs that power because it solve highly complex math problems, for a network to be secure and operational, . Besides miners must do work for the network, which will be easy to confirm – proof of work.
Moreover, a digital miner can be anyone, just buy the right equipment. Thanks to the miners network transactions can be done and for that network rewards miners with new bitcoins (amount per block)
Most noteworthy questions are: What will be when we reach bitcoins supply limit and what miners will recieve as a reward for maintaining the network?
It’s simple, the network will pay commission for the transactions.
Make money on Bitcoin
Finally, we hope you read our articles about Bitcoin – privacy, mining and blockchain. Next step for you might be learning how to invest in crypto and also how to make money with bitcoin – click button below. Grab your first cryptocurrency and start your journey in Crypto!