How does it work? Simple explanation
Bitcoin is a very complex technology. The explanation of its operation is not an easy task due to two main reasons: a) Bitcoin tries to solve complex problems; B) Bitcoin is composed of multiple technologies that operate together, therefore, to understand Bitcoin it is necessary to understand the operation of each of its parts.
Bitcoin is a digital currency that works on a decentralized and distributed network of computers allowing the instant payment to anyone in any part of the world.
Bitcoin uses peer-to-peer technology that allows it to operate without the need for a central or controlling authority. Transaction management and monetary issue are carried out automatically by the members of the network. Bitcoin does not belong to any government or company. In essence, Bitcoin has no owner.
In a general sense, Bitcoin's technology is composed of three main parts: a) The Bitcoin network; B) blockchain; C) the bitcoin coin. When we speak of Bitcoin with a capital "B" we refer to the network. When we speak of bitcoin with "b" lowercase we refer to the currency.
The Bitcoin network is decentralized and distributed. The term decentralized means that the computers that make up the network, called nodes, are dispersed geographically and connected through the Internet.
The term distributed means that the information is not stored in a central server or main location, but all nodes in the network share and store the same information. At the minimum modification and / or addition of information, it is replicated between all the nodes of the network.