How does Bitcoin work?

Bitcoin is a digital currency. You can process transactions in a peer-to-peer network with it. Thus, it is not subject to any central authority. So it is based on the blockchain technology and is limited by a software.

Bitcoin is a cryptocurrency and works as an account book. A peer-to-peer system executes all public registered transactions and is, therefore, a network consisting of several computers. Thus, users monitor all transactions. So all transactions are visible to you and everyone else. The transfer is cryptographically secured, so coins can safely be sent.

For this purpose, you can use digital key pairs, consisting of a public and a private key. So you can use the public key for receiving and sending the digital currency. And the private key is for the authorization of your transactions.

If you want to know more about public and private key, this might help you: Ethereum wallet