Bitcoin is a new kind of money, the first decentralized digital currency, and an innovative global payment network that works without involving any banks. It was published as open-source software in 2009.
Bitcoin uses peer-to-peer internet technology to operate with no central authority, i.e. no banks. It is public by design, so nobody actually owns or controls Bitcoin but everyone can take part. Bitcoin allows for innovative financial exchanges that could not be covered by previous payment systems.
So how does this magic bullet work? Bitcoin transactions are verified by network nodes and recorded in a public distributed ledger called a blockchain. You might have heard about blockchains lately, they have been in the news a lot. Where do digital bitcoins come from? They are created by companies engaged in computations done to compile recent bitcoin transactions into blocks and also to solve difficult math puzzles. This process is referred to as "mining" but bitcoin can be also be exchanged for other currencies, products, and services in both legal and black markets.
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