What does 'bitcoin' mean?

Throughout, we use "Bitcoin" with a capital "B" when referring to the network or the cryptocurrency as a concept, and "bitcoin" with a small "b" when we're referring to a quantity of individual tokens. Blockchain "mining" is a metaphor for the computational work that nodes in the network undertake in hopes of earning new tokens.

What is a bitcoin node?

Node: A machine that takes part in the global network by running the bitcoin software. Blockchain: A database of financial transactions which constantly grows as new transactions or ‘blocks’ are added to it, forming a continuous and public chain of data. Cryptocurrency: Digital, decentralized currencies that uses cryptography for security.

How does bitcoin work?

Instead, Bitcoin uses blockchain technology to support peer-to-peer transactions between users on a decentralized network. Transactions are authenticated through Bitcoin’s proof-of-work consensus mechanism, which rewards cryptocurrency miners for validating transactions.

What is bitcoin mining?

Bitcoin mining is the process by which new bitcoins are entered into circulation. It is also the way the network confirms new transactions and is a critical component of the blockchain ledger's maintenance and development. "Mining" is performed using sophisticated hardware that solves an extremely complex computational math problem.