How Bitcoin Works

Actually, we have tried to answer this question in many articles before. But with Ethereum, I see the need to start on the basis of the differences. Let's list some of the main features of Bitcoin:

Not central, any organization can not control Bitcoin's production, can not control the flow.
Anonymously, the freedom of action does not depend on identities.
Transparent, all transactions can be instantly seen by everyone in the system.
All this is possible thanks to a new generation of information technology called Block Chain.
Bitcoin's Block Chain is like a notebook where all the current transactions made are saved. Every 10 minutes every new transaction is made into a block - a chain of an ordinary chain - and stored in the book, and the place where it is recorded is always the last ring of the chain or a leaf added to the book. It can not be done backwards, it is against the system. So you can not tear up your notebook leaves or delete their contents.

This means that the Bitcoin bases are not valued depending on some values ​​in the vertex. Your current position is valued by the computer processing of all this information in the book. As knowledge increases, the demand on the processor increases. That's where mining comes in. In order to increase the computing power of the system, personal computers can be built, and the more they contribute to the processing of the information in the Block Chain, the more Bitcoin (BTC) they acquire.