Bitcoin is a very popular digital currency. Many investors have a simple understanding of bitcoin and the idea of learning to acquire bitcoin for digital transactions. In the next article, we can learn more about the principle and workflow of bitcoin.
For a novice, learning to trade bitcoin requires some technical preparation. First, novices need to know what a digital wallet is and install it on a computer or phone. Bitcoin digital wallets are open source and shared. When investors start using the software, they get bitcoin address data. It is worth mentioning that there are three types of bitcoin digital wallets popular in the market. The first is a wallet on a computer, the second is a mobile wallet on a phone, and the third is a wallet on a bitcoin website. The realization of these steps is not too difficult to understand.
One feature of bitcoin is its security and reliability, which protects the privacy of traders. Therefore, in computer technology, bitcoin guarantees the security of transactions through the encryption of public key technology. It's like one person has two keys, one that everyone can use and one that only one person can use. The address of a bitcoin is managed by such a password protection mechanism. The keys are numbers and letters from the virtual world.
How do you get a bitcoin? Every bitcoin address has bitcoins, and investors can store bitcoins in those addresses through digital wallets. There are many places to get bitcoin. Investors can get bitcoin at bitcoin exchange centers or specialized service providers.
Bitcoin is public because every transaction is open and transparent. The Internet records those transactions permanently. In addition, each participant can see the other's bitcoin balance and transaction records. If an investor wants to protect his privacy and security, he can choose a unique address when setting the bitcoin address for each transaction. An investor who owns bitcoin pays for it by relying on those addresses for transactions. The seller sends the buyer addresses where the bitcoin wallet exists, and the buyer deposits the bitcoin in it. If the buyer sets up the verification method, the transaction also needs the verification process to ensure the buyer's bitcoin security.
Bitcoin transactions are managed and monitored in public areas. Blockchain technology is based on this feature to help bitcoin owners protect their assets from the outflow of bitcoin.
The verification means and process of transactions are more complex. The applied computer technology is dominated by obscure algorithms and huge amounts of computing. Fortunately, investors do not need to understand how these technologies are implemented. They just need to wait a while before they can continue to complete transactions and payments.
To sum up, the bitcoin transaction process is as follows. The seller creates a digital wallet address to the buyer, to which the buyer deposits bitcoin. At this time, two keys are generated, the private key is visible only to the seller, and the public key can be seen by everyone. Before bitcoin is transferred, buyers need to verify the information. Finally, the bitcoin network recorded the transaction.